Ethereum is often the center of attraction when you talk about the best technology based on the blockchain. While Bitcoin is the most powerful cryptocurrency, Ethereum is much more than just being a digital coin. That’s the concept that a lot of people do not understand when they compare Ethereum to Bitcoin. In some ways, you are comparing apples to oranges when you pit Bitcoin against Ethereum or vice versa. Ethereum is a platform on the Blockchain that defines certain protocols for new technologies to be created on it. Today, there are hundreds and thousands of other technologies created based on Ethereum.
However, the question is whether you should invest in smart contracts that are based on Ethereum. For that, you will first have to understand what a smart contract is.
A Smart Contract on Ethereum – What Is It?
When you talk about cryptocurrencies, you are only referring to the coins being exchanged among people. But what when you want to trade contracts, agreements, properties, etc. with each other digitally as well? What do you do then? That’s where smart contracts come in. They allow you to trade your assets in the digital world and define the rules and regulations that govern the transaction. If you fail to obey the rules of the smart contract, you may have to pay a pre-decided penalty.
The Future of Ethereum Based Smart Contracts
You can’t say much specifically about smart contracts that have been developed on the Ethereum protocol. However, you can safely say that the future of Ethereum depends on the cryptocurrencies as a whole. Is the world going to accept cryptocurrencies? Are the financial institutions and governments ready to give the power back to the user of owning and exchanging their money without involving the middle person? If the answer to those questions is a yes, then you are looking at these smart contracts becoming a norm in the coming times. However, if cryptocurrencies do not click, nothing related to them will click either.
Think about it, if you exchange a particular property document with someone in the digital world, how will you exchange the value? What will you put at stake against the document? Well, you will need tokens and digital coins. If the digital tokens and coins cease to exist, the value of smart contracts ceases to exist automatically. All you can do is hope for the best for cryptocurrencies and the blockchain technology as a whole. If things go well for this technology, you will soon be exchanging some sensitive documents in the digital world without any fear.
Final Thoughts
While the cryptocurrency market becomes stable with time, you can make money from it. You do not even have to own any digital coin to earn profits on its trades. Yes, you can do that online with the help of an online cryptocurrency broker like XTR Gate. Ethereum and Bitcoin are already accepted in many countries around the world, and if you can trade them today to make some real money, there is no reason why you should not.
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