By Mary Ann Callahan
Since its inception, Ethereum has set out to be different. Primarily different from Bitcoin but in a number of ways. Ether (ETH) is a token that is used on the Ethereum platform, a blockchain-based crypto that is decentralized just like Bitcoin. But that is pretty much where the similarities end.
Ethereum works in a far more complex way than Bitcoin. With Gas being used on the system to prevent spam transactions and a separate system known as the Merkle Patricia Tree regulating values on the blockchain, it is safe to say Ethereum is far more advanced.
Here are some of the ways that Ethereum’s complicated system has outperformed Bitcoin’s.
For those who still mine crypto rather than part with hard-earned cash to buy Ethereum from exchanges, this cryptocurrency is still an attractive mining prospect. With outputs of the token remaining consistent, it definitely beats Bitcoin for long-term mining. Bitcoin outputs halve every 4 years meaning that it becomes less lucrative the longer it is mined.
Anyone who uses the Bitcoin blockchain will know that transaction fees are always escalating. Currently, a Bitcoin transaction costs around $1, but that has not always been the case, as recently as December it was an eye-watering $30 per transaction on average. The Bitcoin community is currently struggling to bring fees down as well as keep it there, given the tendency for Bitcoin fees to grow with its blockchain. Ethereum, on the other hand, has a very low average fee of around $0.35 per transaction, something that has remained fairly constant over time.
Free Reports:
The average transaction on the Ethereum blockchain takes 15 seconds, this is lightning speed when you compare it to Bitcoin’s snail-paced 10-minute transaction time.
In many respects, Ethereum has done what it has set out to do, it has created a viable and profitable token that is a rival to Bitcoin not only in value and market share but also in usability.
To that extent, it has innovated the crypto world and brought a breath of fresh air to the community that was until that point suffering from the clunky Bitcoin blockchain. But there are other innovative coins now on the market looking to take down Ethereum. We look at Ethereum’s top 3 contenders below.
Because cryptocurrency is a new concept, there is a huge element of trial and error. Much like the bug fixes that you get updated on your apps, сrypto often needs problems ironed out. To that end, there are many newer tokens that are innovating and creating a better functioning currency for users than the old guard.
XRP currently has the third largest presence by market capitalization in the crypto world. It also has an incredibly low value, but we won’t get into the whys of that here.
Unlike Ethereum and Bitcoin, XRP has set out to conquer the real world – the world full of regulators and financial institutions. That is partly the reason that XRP moved away from the decentralized platform, having a head office and governance over how the token is used instead. This allows Ripple to strategically insert their protocol into financial institutions all over the world and gain real-world traction. If you’re looking for your next crypto token, watch this space.
Stellar Lumens is a direct competitor to XRP and an indirect competitor to most other crypto tokens. Stellar Lumens, like XRP, is aiming to revolutionize the way banking systems operate the world over. The aim is to implement the Stellar system and bring financial freedom to the third world countries as well as faster and cheaper financial solutions to the first world ones.
Again like XRP, Stellar Lumens has had a lot of real world success and has been implemented in a few financial institutions. It would, however, be amiss to say that they have been as successful as XRP. The Ripple protocol is now implemented across many leading financial institutions worldwide.
Don’t count Stellar Lumens out yet, it has a lot to offer and XRP has had a few difficulties of late, so it could be the opportune time for Stellar Lumens to take up the mantel and move ahead in the market position.
This remains to be seen, currently, it is unlikely that any token will overcome Bitcoin. Bitcoin simply has too much leverage in the crypto arena to be toppled at this time. Ethereum, on the other hand, is in a more precarious position. With the likes of XRP already breathing down their neck, it could be that they are soon overtaken.
It will all come down to the battle of who will innovate the most and who will ultimately bring the most value to both the crypto world and the real world. The next year should be very interesting indeed, with many tokens jostling for the position. We could see a completely different running order this time next year.
About the Author: Mary Ann Callahan
As an expert on Bitcoin-related topics, I’ve found myself as a Journalist at Cex.io – cryptocurrency exchange. I’m working on articles related to blockchain security, bitcoin purchase guides or bitcoin regulations in different countries.