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If you have heard of Bitcoin as the largest cryptocurrency then it is time for you to take notice of the second largest too.
Ether, which is the currency for the Ethereum platform, has quickly gained popularity and market share when it comes to blockchain technology. Experts even predict that Ethereum is going to grow a lot more, possibly even surpass Bitcoin.
While both Bitcoin and the Ethereum platform have had some major downfalls in their time, Ethereum’s future is a lot more promising as compared to Bitcoin.
Here are 6 reasons why experts believe that the future of the Ethereum network looks very bright:
1. Ability To Automate Payments Better
Ethereum has one obvious advantage – the ability to make smart contracts that can carry out a wide range of programs and customizable options instead of being limited to direct transactions.
You will see the frequent use of smart contracts when you try to analyze the future of Ethereum as it is one of the striking benefits of using the platform.
Hence, the first reason is that Ethereum allows you to build smart contracts in such a way that you can automate payments better as compared to other platforms.
2. The Possibility Of Infinite Scaling
A common problem that many cryptocurrency platforms run into is the fact that the blockchain is slow when it comes to carrying out transactions and generating proofs.
This means that no matter how great the platform is, it will never be able to scale to the point of use as the only currency because of speed and security concerns.
However, Ethereum allows transactions to be automated and remarkably quick. This is, of course, possible because of smart contracts.
Additionally, experts in the field have found ways to compress validity proofs significantly, essentially making the whole process super fast.
Thus, this rollup compression sets the stage for Ethereum to possibly scale infinitely, to the extent required in the future, if it were to become the norm for payments.
3. Great For Diversifying Risk
Another reason that draws many to the Ethereum platform is its ability to host other cryptocurrencies besides its native Ether currency. This means that anybody can build an app on the platform and start trading their in-app currency.
This feature is very attractive to investors as they can buy these cryptocurrencies and diversify their investment portfolio even more as they are not limited to one type of currency.
This also attracts software developers to the Ethereum platform as they have a chance to create their decentralized applications and smart contracts. Knowing the Solidity language is a must for developers working on the Ethereum platform, that’s why many pursue blockchain developer training for learning advanced Solidity programming.
4. Potential To Become The Leading Money System
One of the biggest reasons why cryptocurrency was even invented in the first place was to create a decentralized system of payment that did not require a third party to complete the transaction.
For example, when you buy something online, you usually have to go through a bank or financial services provider’s payment gateway before you can complete your transaction.
This need could be eliminated with a cryptocurrency that works through smart contract transactions carried out by the blockchain. And it is because of this potential that many experts believe that the Ethereum network could become the leading money system.
Some even go as far as to say that it could replace current currencies and transform the digital transaction game completely.
5. New Emerging Projects For Ethereum
Ethereum is often regarded as a platform with many diverse use cases. This is the most exciting part of the Ethereum environment as developers find new and creative ways to utilize the platform.
The sheer number of applications and projects that have emerged for this network is already a predictor of its bright future.
Even with its limitations and bugs, Solidity developers have found applications for the technology in every field imaginable.
A simple search for Ethereum apps will reveal programs created for industries such as Music, Art, Finance, Gaming, and many more.
Moreover, within these industries, you will find a variety of ways that the Ethereum network is being used such as for crowdfunding, freelancing payments, digital storage rentals, and even fantasy football.
You name the genre and there is probably an Ethereum app out there for it and if not, you can easily use Solidity to create your own.
6. Overcomes Some Limitations Of Bitcoin
A major factor that shows that Ethereum has the potential to take over Bitcoin is the basic language that the platform is created on.
Basically, the foundational differences between the way the scripting language works for Ethereum and Bitcoin dictate the type of tasks that the platforms can carry out.
Bitcoin works on direct transaction scripts that require “Proof of Work” and cannot be completed without the interference of a third party to verify this transaction.
On the other hand, Ethereum-based transactions run on smart contracts that are written in a language that can be easily learned and used and allows for way more flexibility than Bitcoin.
Moreover, this ability to create smart contracts is a big setback for Bitcoin as the general simple contracts on the platform are not enough and you cannot do more without stacking other third-party solutions on top of it.
In short, there are several reasons why the Ethereum network’s future looks so very bright and promising. Experts are hopeful about the possibilities and recognize the shortcomings of the platform.
Reading up a bit on Ethereum will quickly make you realize its power and what it can mean for the future of blockchain technology as well as cryptocurrencies.
It will not be long before the masses will have to understand the workings of the revolutionary blockchain technology and how it can impact their transactions.
This is your sign to start educating yourself about the blockchain and become an early adopter of the technology!