Ethereum Has Become The Platform Of Choice- Part 1
Overthrowing Bitcoin, Ethereum has become the choice for developers. What is the reason behind it?
The story has been mainly about Bitcoin for most of the history of blockchain-based currencies and assets as at a market capitalization of around $ 40 billion it remains the most valuable cryptocurrency. Whereas with the rise of a new chain on the block namely Ethereum, there are new ways to fund the development of new crypto platforms with ICOs the narrative is thereby shifting somewhat to the entire cryptographic asset class. Taking a more in-depth look at some of the historical trends in the digital currency space, it is paying close attention to Ethereum with the role as a platform of choice for new cryptographic assets. It is on the rise that the numbers of digital assets. Whereas regarding all the number of cryptocurrencies that are listed on CoinmarketCap.com is the main reference site for digital asset developers and speculators alike increasing significantly?
With 809 cryptocurrencies and other digital assets listed on the main CoinMarketCap.com, later on, it surged up to 857 cryptocurrencies and assets listed on the site. The open-source nature of most cryptocurrency systems means that it’s easy as trivially as it can be to make copies of the software making some modifications to the protocol and thereby releasing it as a new wholly separate system.
Increasing rapidly is the Bitcoin price with aspiring Satoshi Nakamotos of the world began forking various cryptocurrency protocols to establish their coins where most of it was off of Litecoin based on Scrypt. With another price spike, Bitcoin had become inefficient to mine Bitcoin on commodity hardware because arms race in the Bitcoin ecosystem produced a new breed of specialized hardware. At the time, Scrypt was still economical to hash on the graphics card and a Litecoin as well as few other Scrypt based currencies, they began to appreciate wholly separate cryptocurrencies forked off of original protocols to rise anew. The Dogecoin was a fork of Litecoin and looking at the family tree of cryptocurrencies, MapOfCoins.com produced really interesting data visualizations.
The major goal here was to create cryptocurrencies as valuable or at least lucrative in the short run as Bitcoin. With the somewhat haphazard approach of throwing cryptocurrencies against the proverbial wall is hoping that something sticks certainly effective at expanding the scope of a blockchain-based currency system that alone doesn’t explain the appreciating value of the asset class as a whole.
ICOs: The Newest New Thing
In case it is forkable, the derivative –by-design nature of cryptocurrencies explains the breadth of the ecosystem whereas what explains the growth in value? The market speculation has a part of it and another part of it with cryptocurrencies and other blockchain-based assets do have real-world applications. Whereas another part comes from cryptocurrency entrepreneurs wising up to the fact that their little upstart protocol to be valuable needed an ecosystem built around them, of course, taking time and money.
Regarding the two ways of approaching this, there has been common practice for the cryptocurrency developers to pre-allocate a certain amount of the cryptocurrency to self-fund development once the new cryptocurrency hit exchange and thus had a price, this private stash would then have value enough to sell for Bitcoin or fiat sustaining a project until the ecosystem of wallets and services around their cryptocurrency becoming self-sustaining and community-driven.
Even though the fundraising mechanism of choice appears to be the initial coin offering as explained by Alex Wilhelm that an ICO is, of course, a fundraising tool trading future crypto coins in exchange for cryptocurrencies of immediate liquid value giving the ICO Bitcoin or Ethereum and get some of Billy’s New Super Great Coin.
To Be Continued
This discussion is continued in the next post where the Ethereum is discussed in detail. There are many reasons why the ICO s are considered to be the backbone of any crypto coin. No matter if they are forked from existing coins, there is always a space in the crypto world for them. As developers ignore the risks and challenge each other in becoming Satoshi Nakamotos they still have a lot to attain to get the best out of blockchain technology. Read on for more information as experts claim that the future is robust for Bitcoin and other cryptos thereby becoming the universal currency with the help of the virtual world. This is why developers and investors are swarming on the ripe techno world promising returns. Help us bring you the latest from the crypto family.