The participants, products and business processes of global trade chains are all orders of magnitude more complex when compared to any physical supply chain in history. The complexity is not just regarding the size and number of participants but also the vast array of contracts to govern an infinite number of business activities and relationships. In the end, it creates significant inefficiencies, the financial and regulatory costs borne by the participants.
With the introduction of a digital asset system, these mechanisms would be unnecessary and result in faster and fairer transactions, reducing transaction costs. However, the issuance and management of an asset system by an independent digital currency created with distributed ledger technology is an enormous arena not yet fully explored by the global financial community. So, if you are new to Ethereum, here is a Guide to Mining Ethereum.
Once several associated asset derivatives and securities are issued on a blockchain and managed by algorithms, a new global financial system is realized, and the 21st Century is ushered in with new and simple financial transactions. Ethereum seems to be providing a better asset management and contracting system than bitcoin, which is one of the many reasons why Ethereum is preferred. So, let’s discuss why people like Ethereum over bitcoin.
Table of Contents
Ethereum is more scalable:
One of the critical problems with bitcoin is its inability to handle more than a dozen transactions per second on the network. This scalability issue has created issues with its use as unfair conditions by users. Ethereum, on the other hand, offers nearly 10,000 times more capability in terms of transaction capacity.
Bitcoin lacks a service system that can provide services to users interacting with the blockchain. For example, services like dealing and payment require a system that supports private keys for each user, which would require a significant amount of storage space for each user to hold these private keys. Bitcoin also lacks methods for carrying out activities that involve multiple parties, such as joint venture agreements involving many parties. It is also somewhat tricky to trade assets in bitcoin.
Smart contracts on Ethereum
Ethereum, on the other hand, has a complete service system and provides smart contracts that people can use to handle these activities. It also has a memory system for storing large amounts of data and linked lists of data so that all transactions can be carried out by each user easily.
Ethereum allows for upgrades:
Bitcoin is often criticized for being slow to upgrade and for not allowing for any changes to be made to its basic structure. Ethereum, on the other hand, is entirely based on software code that can be changed and modified by the entire community of users of the platform. As a result, it makes it easier to make adjustments and upgrades in response to changes in business activities.
Ethereum’s blockchain system:
One of the most significant issues with bitcoin is that it doesn’t utilize an integrated network system and only generates blockchain transactions based on user demand. Furthermore, it requires every user to generate transactions processed in every block, which takes up a lot of processing time on the platform. Ethereum, on the other hand, uses a system that allows every user to have their chain and transaction. As a result, it reduces processing time and increases the efficiency of transactions on the platform. In addition, this enables platform users to engage in joint ventures without requiring an intermediary or other third parties. Instead, all transactions are carried out automatically by the system itself.
Other features:
Ethereum provides flexibility regarding currency control and allows users to create new tokens using its platform through initial coin offerings (ICOs). It also has a simple front end that makes it easier for users to use blockchain technology for their needs.
Ethereum also has a better block system as the block size issue is another problem with bitcoin. It can only hold about 1MB per block, which is too small for the data it needs to store for various services like identity management and asset trading.
Ethereum allows you to create decentralized apps:
Ethereum also allows app creation through a simple API that allows developers to create decentralized apps on the platform without any restrictions. It is one of the main reasons why people like Ethereum over bitcoin because it allows users to create new software using its platform that everyone can use. In addition, the decentralized apps created using the Ethereum blockchain will be tamper-proof, secure, and have very little processing time.
Ether has an optimistic future:
Over the next 10 years, Ethereum will have many more advancements in its blockchain system that are yet to be discovered. Some of these advancements could revolutionize the way business is done in different industries and change how users interact with each other. The scope of activities that can be carried out using smart contracts is also immense, and many users would like to explore this new technology further. Ether’s blockchain system could transform many aspects of our daily lives. Its popularity is likely to grow over time because people like Ethereum over bitcoin, and it has a bright future ahead.
