2023-04-20 13:34:31
Cryptocurrencies have now become an integral part of our daily lives and the global economy, there can be no doubt regarding that. However, for many, cryptocurrencies are still synonymous with bitcoin, even though this has not been the case for a long time. Moreover, some fanatics see that BTC’s dominance has found a serious challenger in the person of Ethereum. Especially since the number two cryptocurrency is coming up with more and more innovative developments. However, the dethronement is not so clear. Let’s look at a little comparison!
Ethereum and Bitcoin are not actually competing with each other
Ethereum also supports decentralized applications (dApps) and smart contracts. In contrast, bitcoin focuses mainly on secure and decentralized transactions, not much else. A good example of Ethereum’s flexibility is Uniswap’s decentralized exchange, which allows users to buy and sell tokens without a centralized intermediary. And in the recent period, with Ethereum 2.0 and the Shanghai hard fork, the developers also fixed two important problems. On the one hand, the problem of scalability, and on the other hand, environmental protection concerns by switching to the Proof-of-Stake consensus mechanism. And the so-called with the help of sharding, it was also possible to significantly improve the performance of the network, so the network became attractive for larger projects as well.
However, as the first cryptocurrency, bitcoin has gained such a level of recognition and popularity that it will be difficult to overcome with simply new functions. And even with bitcoin, there were developments that made the network even more attractive.
The introduction of the Lightning Network, for example, brought even faster and cheaper transactions to the bitcoin network, which further strengthened the leading position of the network. Plus, unlike many other cryptocurrencies, bitcoin’s limited supply and ability to store value have made it digital gold. Here, function is not the main focus, but value. Those who want to deal with the effects of inflation are not very interested in dApps, they only pay attention to stability and scarcity. So overall, it cannot be said that there will be a dethroning of the two leading cryptocurrencies. They will play a leading role right next to each other in a completely different competition. One is not better than the other, simply both are good for different things.
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#Ethereum #Bitcoin #Cryptocurrency