Since its inception, cryptocurrencies based on Blockchain technology have consistently shown the leadership that Bitcoin possesses since this was the one that gave way to all this new era of the oil profit market.
The tremendous weight rests on its shoulders since it is the most decentralized digital currency, the oldest, and the most potent encryption network.
It does not mean that it is the only one, this is demonstrated by the second most quoted digital currency in what closed 2021 and does expect for this 2022, and it is none other than Ethereum.
A little history
Ethereum represents a new Blockchain platform created in 2015, which has its cryptocurrency different from Bitcoin and its name is Ether (ETH).
Ether is a digital currency with the same characteristics as Bitcoin in terms of its decentralization. Consequently, it doesn’t control by any third party, be it an institution or government; through it, you can store value even carry out payment transactions or other investment operations.
The Ethereum Token has become the second most popular digital currency in the cryptocurrency market in just two years, and everything indicates that its strength could overthrow the number one Bitcoin.
The Ethereum Blockchain has proven to be much more ostentatious in terms of its built-in programming, where many technical experts can even create new decentralized applications from this platform.
Why does Ethereum arise?
In this technological age where the databases of all the people in the world rest on large corporations and governments, where the latter has excellent control over said information, placing them in a privileged position in terms of information.
Ethereum’s primary goal is to replace online banking, in addition to becoming third-party providers of goods and services with private teams that maintain information on the blockchain platform.
Its creation arises to replace traditional economic and financial methods because the technological era is at its highest point, even preparing for the new generation of the Metaverse.
At this point in Web3, thousands of programmers and developers introduce a considerable number of digital assets and applications based on Ethereum, intending to position this new technological and digital commerce era.
Characteristics of Ethereum
The main characteristic that differentiates Ethereum from other cryptocurrencies is that this digital currency can create well-known smart contracts, a computerized program that acts as a contract; that is, it relates people or companies through agreements or obligations.
This digital tool is automatically established when they place the tokens in escrow. The benefits of Ethereum smart contracts are as follows:
They are Digital contracts; that is, it is not necessary to print or publish them in printed media to be created; this allows them to be easily shared.
They are Autonomous; there is no intervention of third parties, only those involved.
Its reliability is a point in its favor because the content of the Smart Contract is encrypted and protected in a worldwide accounting book.
They have a high level of security; their storage on the blockchain platform makes their theft or fraud practically impossible.
Its automatic execution allows the information transmission speed levels to make them faster.
They are much cheaper since traditional expenses do avoid preparing a contract, such as professional fees.
They have the unique feature of having multiple signatures, and until all parties agree to any procedure, the smart contract is not executed.
Expectations for 2022
Ethereum is the digital currency that positioned itself with the second-highest percentage of operations after Bitcoin. In addition, this position has been extended to the exchange and trading transactions of cryptocurrencies.
The profits that traders have obtained through high bonuses and important remunerations for the mere fact of trading with Ethereum make this digital coin most popular.
Conclusion
This year aims to be the year of cryptocurrencies; the recovery so far in February in terms of the price levels of digital currencies indicates that both Bitcoin and Ethereum will continue to compete until either Bitcoin gets stronger or the preference of the users takes the first place to Ether.
Smart contracts point to unprecedented growth. After all, they are protected from hacking attempts and cyber fraud, generating greater confidence in their users because their digital investments are safe.
Battles for positioning in the digital economy will be the main news in this Blockchain environment.
