Ether, the cryptocurrency of the Ethereum network, is the world’s second-largest digital currency after bitcoin. Nevertheless, ether’s faster growth rate may shortly dislodge bitcoin from being the predominant crypto.
While bitcoin is up by 261% in the last 12 months, ether grew by 856% in the same period.
Before the introduction of Ethereum in 2015, blockchain was merely used as a distributed ledger for recording bitcoin transactions. Ethereum transformed the focus from cryptocurrency to blockchain bringing about a sea of possibilities in the technological realm.
Powered by Smart Contracts, NFT and Decentralized Finance (DeFi) are prominent use cases for Ethereum blockchain. Smart Contracts are lines of codes stored on the ethereum blockchain that run when predetermined conditions are met.
Non-fungible Tokens (NFT)
Early this year NFT exploded in popularity and has since taken the art world by storm. The sales volume for NFT, digital assets secured through Ethereum, surged to an all-time high of $2.5 billion within the first half of 2021.
NFT are tokens that represent ownership of unique digital objects like images, videos, games, domain names, and memes among other things. The ownership is recorded on the Ethereum blockchain.
The Disaster Girl Meme, featured by Zoe Roth, has become a popular NFT.
Unlike yesteryears, a copy of a file like .mp3 or .jpg on the internet is not the same as the original. The proof of ownership enabled through NFT gives more power to content creators. They can sell it anywhere and can access a global market.
Decentralized Finance (DeFi)
DeFi is a collective term for financial products and services that are usually built on top of Ethereum Blockchain.
Built for the internet age, DeFi is a powerful alternative to opaque and tightly-held traditional financial institutions. Today, DeFi enables a booming crypto-economy where one can lend, borrow, earn interest, trade, and do more without the need for intermediaries.
Argentina’s tech-savvy youth have leveraged DeFi to beat crippling inflation.
NFT and DeFi are bubbling topics today and only 2 of many such prominent use cases. Ethereum Blockchain is revolutionizing supply chain, banking, food distribution, retail, and governance around the world.
Ethereum is not the only challenger to bitcoin. Besides, comparing ether and bitcoin is akin to comparing apples and oranges.
While bitcoin is focussed on becoming the alternative monetary system, ethereum is the most used blockchain by programmers to facilitate Smart Contracts and other decentralized applications.
P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.