The role of data in the management and operation of Ethereum networks has been recognized as critical to success. The potential reach of blockchain technology promises to extend the advantages of digital data sharing across global supply chains.
The below-listed information will explore Ethereum’s potential to influence and dominate the cryptocurrency domain in a way that Bitcoin cannot. Allowing decentralized computing power, Ethereum can process transactions faster, cheaper, and more reliably than its predecessors while using this reliable platform Ethereum Code. With this insight into blockchain technology, it is not difficult to see why Ethereum has such a commanding lead on other altcoins regarding cryptocurrency trading volume (over 36% for the time being).
Lately, there’s been an uptick in momentum for cryptocurrencies. Some of the largest blockchain companies, including Ethereum, have seen their market cap increase exponentially in only a few short years. The question still stands, why is Ethereum becoming so dominant?
Ethereum has been around for nearly eight years with a decentralized cryptocurrency and smart contracts platform. Ethereum began as an ambitious undertaking with its purpose to be “a new breed of computer” that could empower anyone to build and run applications that run as programmed.
It’s a solid, compelling value proposition that appeals to crypto traders and mainstream consumers. As intelligent contract functionality had an addition to their blockchain and Ethereum was born, it opened up a whole new realm of possibilities for decentralized applications. Moreover, its public blockchain is one of the most powerful computing networks in the world. Not only that, but with tens of thousands of projects being built on its ecosystem, Ethereum has become a powerhouse in the cryptocurrency market.
What makes Ethereum so dominant? Here are a few reasons why:
1) The team and technology behind Ethereum have proven reliable and effective: Vitalik Buterin and co-founder Joe Lubin both have a track record and have proven themselves reliable technologists focusing on blockchain development.
2) The Ethereum network has a first-mover advantage: Ethereum already has an established network with tens of thousands of projects built on its blockchain and innovative contract technology. As a result, it’s easier to attract developers and businesses that want to build on the Ethereum platform than with other cryptocurrencies.
3) The Ethereum community is decentralized and self-governing: Decentralized organizations are a common trend in today’s society. With the integration of blockchain technology, the organization becomes more decentralized, leading to more autonomous decision-making. It is also valid for Ethereum; many projects were created using smart contracts to create self-governance and remove power from central authorities.
4) Ethereum has innovative contract technology: One of the most significant advantages that Ethereum has over the competition is its innovative contract technology. Smart contracts allow specific criteria to be programmed into the blockchain and actioned once certain conditions are met. It is a critical element of developing decentralized applications and could open up potential use cases that haven’t been thought of yet.
5) Ethereum has a strong developer community: It’s becoming clear that blockchain developers prefer Ethereum due to its wide array of functionality and first-mover advantage.
6) The Ethereum network is secure: Ethereum blockchain network has been thoroughly tested and is currently one of the most secure in the industry. Ethereum is a decentralized network with millions of nodes worldwide that can run high-performance applications and uncomplicated, intelligent contracts using its programming language called Solidity. It allows for a more efficient and cost-effective development environment than what other cryptocurrencies have available.
7) The tide of developers and users has turned towards Ethereum: Due to the speed at which Ethereum has grown, the number of developers actively contributing to it has increased exponentially. The popularity of blockchain and innovative contract technology is only growing as more users begin to see these technologies’ potential.
8) Ethereum mining is highly profitable: The mining of Ethereum is much less expensive and time-consuming than Bitcoin. Anyone with the necessary hardware could mine Ethereum without losing significant money. The cost to mine Ethereum is cheap compared to other altcoins, and with the value of its currency continually increasing, mining profitability will only increase in the future.
9) Ethereum has a large user base: While many cryptocurrencies offer their advantages, one thing that all coins need to realize blockchain technology’s potential entirely is a large user base. Bitcoin has accomplished this for the most part but not so much for its more recent competition; Ethereum can boast of having over 100 million users on its network, with over 24 transactions happening every second.