Bitcoin has tried to live up to the hype about its appearance into the mainstream three years ago. Bitcoin startups have failed the applications development that address to mainstream customers in spite of more than a billion dollars investment to venture capital. And over the past year, the main question the Bitcoin community has asked was ‘how to expand the network’s capacity’.
Bitcoin now is in danger of losing its top status as the world’s leading cryptocurrency, for the first time since its appearance. Bitcoin-like technology called Ethereum that became very interesting for developers, users and even corporate world, is the main candidate for this title. In comparison with total bitcoin market value of $7 billion, Etheteum’s currency is now worth more than $1 billion. Last week Coinbase, a leading Bitcoin startup, announce that it was adding support for Ethereum to the trading platform because of its popularity.
Ethereum cannot be considered as just clone of Bitcoin. The growing excitement about Ethereum reflects this fact. Ethereum network can do a lot more than makink payments, in comparison with Bitcoin.
Ethereum has positioned itself as a new kind of virtual computing platform. The most attractive feature is Ethereum’s ability to create binding financial agreements that can be enforced entirely by software without courts involvement or other human intermediary. That has made possible the creation of virtual organizations which exist only on the internet. Dao is one of such organization, which has collect more than $150 million to fund further work on such technologies.
Ethereum was introduced as technological breakthrough, which excites techies for the present day. Its technology gives a chance to do things purely in software that was not possible before. Nevertheless, the main remain question about Ethereum is whether the practical applications, because no one has designed such Ethereum applications.