Pretty sure that you’ve come across the buzz of Hollywood,
John Krasinski and Emily Blunt, Angelina Jolie and Brad Pitt.
Fine who are they? Celebrities. Their name is “Power Couples“.
Here, we’re going to unveil the elite pair that’s gonna transform the future.
It’s the Bitcoin and Ether.
Just grab a cup of coffee, and let’s begin our journey to the heart of the Blockchain. I bet you’ll be amazed to explore all of its adventures.
Fasten your seat belts comrades.
Travel Glimpse
When coming to this topic, first we have the duty of clarifying the greatest doubt of all time. What came first to the world, Bitcoin or Blockchain? Any guess?
We can say that Bitcoin is the brother of Blockchain tech. Hope you got the answer.
It was when the mysterious Satoshi Nakamoto published a white paper in 2008. It describes why bitcoins exist and how it should work.
The document made clear that the ultimate goal of Bitcoin is to remove the third party from sending assets or values. The term Blockchain isn’t mentioned in it. The media frequently misinterpret that Bitcoin is based on Blockchain technology.
Bitcoin wasn’t originally intended to be just a chain of blocks. Bitcoin was crafted to solve specific business challenges.
Ethereum applies the same logic as Bitcoin but it involves with processing of data and logic. we can put these as non-identical twins.
The sole purpose of this voyage is to make you understand the past, and present and how this duo is gonna enlighten us in the future.
Well, are you ready to go for a time travel?
Bitcoin’s Legacy: From Satoshi to the Spotlight
To understand the prospects of Bitcoin and Ethereum, we should revisit the era when Bitcoin was first launched.
Bitcoin 101
Bitcoins are virtual coins with their ownership documented on a digital ledger. This notepad throws a worldwide sync party, where thousands of computers chat and gossip to keep everything up-to-date. That electronic notepad is Bitcoin’s blockchain.
Let’s take a look at how a transaction takes place within Bitcoin’s blockchain network.
- Transactions get a stamp of approval from a system’s rulebook(protocols).
- Rulebook is run by software on a bunch of computers.
- These computers, known as nodes, are like the network’s diligent workers.
- Among them, the “miners” are the busy bees who check transactions by Proof of Work(PoW) algorithm.
- They bundle them into digital blocks and pass them around like party invitations to the whole network.
It’s time to decode the past of Bitcoin and connect it with the current scenario.
Bitcoin: Connecting historical threads to now
Bitcoin didn’t just appear out of nowhere. It was pieced together from past ideas and blended with some innovative ideas.
You won’t believe that Bitcoin has been hacked in the past. Yes, someone took advantage of its weakness and ended up generating 184 billion Bitcoins for themselves.
The Maiden purchase
while digging into its past, we can’t miss the most iconic Bitcoin payment ever made in history. It’s “Laszlo’s Pizza Bitcoins“. It was Laszlo, a programmer who paid 10,000 bitcoins for two pizzas. Sounds crazy right?
As bitcoins were new to the market, the price of BTCs at that time was not even 50 USD.
It is recognized as the first real-world purchase made by a bitcoin and That price could be worth a billion in today’s BTC price. This underlines how the value of the BTC has reached its zenith. It’ll make such a growth.
Inaugural transaction
Hal Finley, a programmer downloaded the Bitcoin software. And received 10 Bitcoins from the mysterious Nakamoto, marking the world’s first Bitcoin transaction ever. Finley it is said to be the first adopter and receiver of the Bitcoin.
Dawn of altcoins:
Bitcoins’ popularity made many create alternative cryptocurrencies “altcoins“. After experimenting with the technology, the bitcoins are brought to the exchange platforms to trade.
The Status Quo
Like anyone, Bitcoins do have nicknames. Out of all, digital gold is the most relevant. To date, the price of the bitcoin remains volatile. We know that the market price will go up and down based on many factors including government regulations, geopolitics, and technological advancements.
Even though coming around the world as the largest cryptocurrency, many countries restrict and ban cryptos.
currently, 219 million people own bitcoin in the world. Out of these, more than 1.5 million people possess one Bitcoin.
Bitcoin has adopted layer 2 solutions like the lightning network to resolve scalability concerns. This speeds up transactions and reduces costs by running them off the primary blockchain.
The Next Phase
The future of the Bitcoin network is addressing all the challenges it faces now.
- Bitcoin consumes a lot of computational power while validating the blocks which might impact our environment. The community is working on the mining process to bring more energy-efficient consensus mechanisms.
- Being prone to 51% attacks in the network, makes a single entity dominate the network. This might pave the way for the attackers to double-spend the coins. Where Bitcoin’s purpose itself is to prevent this concept. The chances of this attack are very low. If we increase Bitcoin’s hash rate will make this more tiring and expensive.
- Many regulatory bodies are planning to adopt cryptocurrency. They must revise and reframe their monetary policies to make such a move. But we can’t expect it soon. This might impact its value.
- By carrying out the Taproot update, Bitcoin made a wise decision. This decision opened paths for focus areas like enhanced privacy, efficient execution, flexible smart contracts, transaction flexibility, reduced transaction size, and future upgradability. It does all this by integrating the Schnorr signature, the new scripting language tapescript, marketization techniques, etc.
Aside from all this, there are two crucial things you must always keep in mind.
Firstly, the value of the bitcoin always increases(there can be volatility).
Secondly, the number of users and holders of Bitcoin will also increase despite any occurrence of global changes.
Get ready folks! Now we’re going to discover the Ever Expanding Ethereum.
Ethereum: From Vision to Reality
Ethereum has been revolving around the world as the second most popular cryptocurrency ever developed and existed. The legend, Vitalik Buterin had visioned and created a cryptocurrency with its network which not only serves as a coin but also presents us with a treasure of many applications to the future of technology.
Ethereum Essentials:
The Concept of Ethereum is to create a network that is unstoppable, resistant to censorship, self-sustaining, and decentralized. In late 2013, Buterin unveiled the Ethereum whitepaper, detailing a blockchain built for Decentralized apps (DApps) and Smart Contracts.
Smart contracts are a set of conditions to which users on the network agree. After such conditions are met, the smart contracts conduct the transaction for users. Ethereum is also designed around concepts that are akin to those used in Bitcoin.
The Ethereum transactions contain a coin named Ether which is always misunderstood and misread as Ethereum. Ethereum is the network where Ether a crypto coin is operated on this network.
All these transactions and smart contracts come to life through the Ethereum Virtual Machine (EVM), the powerhouse driving the action for every participant.
Ethereum: The catalyst behind the ICO revolution
The popular Fundraising method Initial Coin Offering(ICO) became successful because of the Ethereum. Its smart contracts facilitate the creation, management, and trading of tokens.
In 2015, they introduced ERC-20 tokens which formed the base for crowdfunding.
The ICO amassed more than $18 million, proving the ICO model’s capability to fuel blockchain projects.
All because of its flexible nature. It gave a boost to many start-ups to launch their projects to gain popularity and attain funds at the same time.
Cruising to Ethereum 2.0
Ethereum marked a milestone with its epic transition to Ethereum 2.0. Proof of Stake (PoS) replaced Proof of Work (PoW) as the consensus method. The main upgrade is simply as 3S.
Scalability, Security and Sustainability.
The Beacon Chain runs concurrently with Ethereum’s original PoW chain, handling the PoS consensus. Here the Miners are replaced by Validators and staking ETH occurs to fortify the network and certify the transactions.
Ethereum’s Impact on DeFi & NFT
Ethereum is the backbone of the two concepts namely DeFi and NFT that the world bestowed us to end the snail’s pace transactions.
Decentralized Finance aka DeFi
DeFi forms a strong foundation with Ethereum’s smart contract. This is an advanced step by making transactions and trading available to everyone with just an internet connection.
It supports many DEX platforms like Uniswap, Sushiwap, Pancakeswap, etc.
It gave an amazing feature of Yield Farming where users can gain rewards and the exchange platform to acquire incentives.
Non-Fungible Tokens(NFTs)
As the token formulating king, Ethereum made tokenizing unique assets possible which is versatility. The asset includes an unbelievable variety of fields like art, music, gaming, real estate, collectibles, food, photography, etc.
Can you imagine the concept of creating both the Fungible and Non-Fungible Tokens in a single smart contract?
Yes, Ethereum achieved this by creating a multi-token standard.
It made us to create and manage NFTs easily and fast. It supports many NFT platforms like Opensea, Rarible, Foundation, etc. These marketplaces allow the creators and the collectors acquire what they desire and generate substantial revenue.
Innovation at its peak
The fusion of NFTs into the DeFi ecosystem is where the future of the Ethereum network relies. It’s like you can use NFTs as collateral to take part in yield farming without searching for funds from other sources. This idea helps to enjoy the benefits of both.
This serves as the central theme for Play-to-earn(P2E) in the gaming world. This make money by doing what you love.
The adoption rate of Ethereum will increase in many sectors like Supply chain, Finance, gaming, etc.
The price of Ether, like Bitcoin, will continue to fluctuate with the domination. It is the highest price in the market that any altcoin holds ever.
Bitcoin and Ethereum – Rulers of the Digital Realm
Bitcoin price will be at the top no matter what. It will remain the best investment option for any crypto investor.
Ethereum is serving as a financial tool in many aspects like DeFi and NFTs which we’ve discussed above. It’ll eradicate all the financial problems we’ve faced in traditional banks.
The count of traditional banks will decrease as the need for traditional banks decreases.
Kaiko, a leading crypto industry analyzer predicted that Ether would outperform Bitcoin after its ETF debut. Ether launches Exchange Traded Funds(ETF). The concept is to trade or track your crypto assets without the need to hold them.
Many crypto experts and investors forecast the prices will reach this and that. One has to understand that the crypto market is highly volatile. The current price of BTC is nearly 60,000 USD and ETH is nearly 2,600 USD.
The value of both will gradually increase to a great extent. You have to analyze which will be the right time to buy and the right time to sell or just hold for a certain period and trade.
More adventures to begin
Countries like Switzerland, and South Korea have a vibrant cryptocurrency market and embraced adopting it in their regulatory frameworks.
The market volume of Bitcoin is dominant at 53% with a market cap of 1.08 Trillion and Ether is around 15% with a market cap of 312 Billion. Other altcoins can’t even compete with these major powers.
Bitcoin and Ethereum are the match in the Blockchain heaven. They both will bring many innovative rides that we have never experienced.
It’s no wonder that Bitcoin and Ethereum are the digital age’s answer to California’s Gold rush.
Step into the digital age and begin your remarkable adventure today. We’re glad that you’ve loved this adventure and Farewell for now crypto geeks!
