Ethereum: Why do we need an alternative Bitcoin
The increase in Bitcoin has led to the debate of intensive investors, developers and enthusiasts about alternative cryptocurrencies such as Ethereum. While some may perceive altcoins as unnecessary, a more close study reveals that these are the necessary measures in the constant evolution of the blockchain ecosystem. In this article, we will examine why Ethereum exists and its purpose.
Bitcoin problem
Bitcoin was designed to ensure a decentralized digital currency for transactions, without intermediaries such as banks. However, as popularity increases, concern about scaling, security and convenience. 2017 The introduction of a 1 MB block size limit limited the number of operations that can be processed per second, making it difficult to adapt to the growing world economy.
Ethereum: More versatile blockchain
In response to these challenges, Ethereum was launched in 2015. How Programmed Blockchain with a script -language language called Solidge. The main idea of Ethereum is to ensure a more detailed development platform for decentralized programs (DAPP) and intellectual contracts that can communicate in a complex way.
Why create an alternative?
Ethereum was created to solve some major problems:
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- Security : Decentralized Ethereum Contract Architecture ensures safe and resistant to manipulation.
- utility : The focus of the user to the consumer -Ethereum provides an affordable platform for programmers from various environments.
What can Altcoins do?
Altcoins like Litecoin (LTC) offers additional benefits for the blockchain ecosystem:
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- lower taxes
: compared to Ethereum some Altcoins offers smaller operations.
Why are Altcoins needed?
The existence of alternative cryptocurrencies such as Ethereum is not a substitute for the existing blockchain ecosystem, but rather an extension and development of its capabilities. Here are some reasons:
- Diversification : The presence of many Altcoins gives investors more opportunities to take into account when choosing cryptocurrency.
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- New use of use : Altcoins often offers new opportunities for companies, governments and natural individuals to participate in a decentralized economy.
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While Bitcoin successfully performs its main digital currency function, Ethereum creation is an important step in creating a stronger and more flexible blockchain ecosystem. The need for alternative cryptocurrencies such as Litecoin arises from the restrictions of Mainchain, not the desire to completely change Bitcoin. With the advancement of the world, it is likely that there will be even more innovative solutions to solve specific pain points in the Blockchain landscape.
In conclusion, Ethereum is not just an alternative to Bitcoin; It is an additional platform to increase the overall functionality and use of the blockchain ecosystem. Using programmable nature and decentralized architecture, developers can create complex programs and intellectual contracts that meet various cases of use.