The massive developments within the crypto space has led to the creation and development of hundreds of cryptocurrencies. Currently, the two most popular cryptocurrencies are Bitcoin and Ethereum. Just like Bitcoin, Ethereum has garnered a huge fraction of the cryptocurrency ecosystem. But unlike Bitcoin, Ether is more of a digital currency that can be used in a wide range of areas such as the financial investments as well as the store of value. It is also stored and exchanged within the Ethereum blockchain network.
If you’re an investor who thinks of adding Ether into your portfolio, Ether will allow you conduct trades, earn interests on your investments through staking, play games and engage the social media. Ideally, there is an ongoing consideration that Ether will be the next level of the internet. The utilisation of the blockchain technology has helped to create a decentralised computing network that functions on Ether (ETH). There are currently numerous applications of ether. In this article, I will provide you with comprehensive highlights regarding the unique features of Ether, which arguably makes it the second most popular cryptocurrency in the market.
Here are the unique attributes of Ether that you will enjoy as an investor:
Decentralisation
By design, Ether is the most decentralised cryptocurrency after Bitcoin. While you are likely to find that certain individuals and agencies such as Vitalik Buterin and ConsenSys exert a huge influence on the project, there exists no centralized system with absolute control. Thus, the unique decentralised system enhances a proper distribution of knowledge among the investors or members within the network.
Robust developer Community
Ether is the only digital currency with the largest developer community in the world. In fact, the community is even larger than that of Bitcoin. This feature provides Ether with a huge advantage over other cryptos. With the plenty of developers available, there is likelihood that Ether will emerge as the first project to find that product-market fit, thereby giving opportunity for mass adoption.
Interoperability
Building an app on Ethereum will allow you to connect it immediately to hundreds of other protocols that exist. If you decide to invest in Ethereum, you will join a community, which is known as the money legos.
It is important to note that there are trendy financial products that are developed and initiated on Ethereum network. As such, you will get accessed to a plenty of financial products that will be perfect for your portfolio. Ethereum has hinted at moving to a different system known as the proof of stake (PoS) as part of its upgrade project to ETH2.0. Without any doubt, the ETH 2.0 update aspires to solve the challenges of scalability. This process will make the cryptocurrency more environmentally friendly.
Finality
There is a huge aspect of finality when dealing with ether as your cryptocurrency. Notably, the traditional cryptocurrencies such as Bitcoin apply a consensus method that ensures that transaction records are canonical and cannot be interfered with. On the other hand, Etherium provides customized consensus mechanisms that include the IBFT and RAFT. These mechanisms help ensure that the transactions are final once completed by the involved parties.
High Standards
Being successful within the cryptocurrency space implies that you must be able to think smart to make informed decisions. One of such decisions is to ensure that you’re going for the best. Etherium is a place to be if you want to be part of success associated with it. Ideally, Ether ecosystem is kept from being fragmented through a number of protocols for token design, decentralised storage, and decentralised communications.
Based on a number of proof of government agreement and created note time, the system developed on Ether can overcome the global power sources to several operations within no time. It is important to note that the framework improvements like clustering and a layer with two scalability methods is likely to allow Ether to improve its capacity in future.
Transactions are not made Public
Through a combination of the private partnerships and transactions aligned on the private layers, businesses are able to accomplish a granularity in privacy when using Ethereum. The encryption ensures that the private information cannot be assessed by every party within the network unless authorised.
By and large, you will note that Bitcoin transactions are monetary-based. In this way, any transactions you perform can have notes and messages linked to them through coding in the transactions. Although such codes exist in Ethereum, they are used to establish smart contracts. Further, the codes also help to facilitate the interactions in all the apps built using them. This technology allows its developers to establish a limitless number of apps. These apps do not depend on third parties for transactions between users to occur.
The Final Take Away
As mentioned in this article, Ethereum is a blockchain-based platform that can be used in a wide range of areas such as the financial investments as well as the store of value. A major question to ask currently is whether Ether is superior to other cryptocurrencies. As an investor, you are likely to benefit from a number of opportunities. Other than investing in ether, you can also make an investment in agencies tasked with the development of apps that use the Ethereum network. Before any investment, we suggest talking to a financial advisor about the possible risks involved