There is mixed sentiment currently populating the digital asset space, with some claiming bullish action while others anticipate further shedding. Ethereum, as the number two virtual currency by market cap, is not immune to being viewed as “one of” the industry’s coins and subject to the same market sentiments.
That said, two points have long been bandied about on the subject of Ethereum. Firstly, the project developers keep insisting that ether is not a currency coin, but a computing system. Secondly, it has found massive application as the default token of ICOs, also enabling the proliferation of dapps in a way no other project has.
Some consider Ethereum a less famous cousin to Bitcoin, as bitcoin has soared to unrivalled heights. That, however, is merely an investment viewpoint, as the ether chain has a massive global application in business and elsewhere that Bitcoin can only dream of.
Many Bitcoin diehards insist that once Bitcoin resolves scaling and other persistent issues, it will overtake Ethereum’s application and overshadow the original altcoin forever more. This is fundamentally impossible, however, as the projects have vastly different stated aims, no matter that they are lumped together by investors as “digital assets.”
The core value of yet-unsung Ethereum can be glimpsed in three snapshots:
Ethereum has found the most flexible and efficient blockchain architecture – so it seems from the huge application of its ERC20 token in ICOs – and is basically doing for currency what the internet did with universal knowledge. Funds, ownership, historical data and anything else recorded or stored by a user remains under that user’s control, even while they are able to share if with the world as they wish
Because the project got some aspects of the build right from the outset, the Ethereum chain has been a far more widely recognized crypto than even Bitcoin, for the purposes of business. Investment aside, the savvy inbuilt into the ERC20 token protocol and the fundamental desire to remain a wholly open-source project make the chain highly attractive as a starting point for millions of business that are busy on-chaining.
The Ethereum smart contract system is the focus of much attention from various parties trying to emulate or employ it. A smart contract is basically a predetermined, self-enacting computing protocol that accepts and validates transactions on the Ethereum network.
Transactions only work one way, eliminating the need for oversight, and cannot be tampered with in any way. Smart contracts are the automated aspects of the chain that manage the nature and settlement of a P2P agreement, without the need for any human interference.
Although the network has suffered hacks – something terminal for digital exchanges and wallets – the development team seems a far busier outfit than most other highly visible blockchain projects. To enact or heighten security, every chain has the option to fork (a fundamental shift that patches a vulnerability or changes protocols by broad consensus), and although forked once, the original ether is still very much alive and well.
As a testament to its value, companies like Microsoft and even Facebook have incorporated the chain in new projects. It is precisely this core value in an application that allows Ethereum to outshine all other offers at this stage, at least in terms of widespread legitimate application.
The project has become the go-to chain in the modern technology industry, with most developers looking to build blockchain projects either copying or incorporating Ethereum. Indeed, the project has become known to some as “the web 3.0” because of its revolutionary capacity to fundamentally change the way the world runs.
Based even solely on legacy evaluation methods, Ethereum is a legitimate sleeping giant, a penny cap, an undervalued token. Although it stands second only to Bitcoin, the number difference speaks of a yet to be recognized coin with a massive global application, something any serious mid to long-term investor should be hard-pressed to ignore.