Bitcoin – Billionaire Mark Cuban has been optimistic about the future of cryptocurrencies, often comparing blockchain technology to the early days of the internet – which led him to win billions of betting on it in the late 1990s.
“I divide my wallet in cryptocurrencies by 60% Bitcoin, 30% Ethereum, and 10% for the rest,” said Cuban, who keeps the few cryptocurrencies he bought in the early days of the emergence of this type of currency.
Although Bitcoin, which appeared in 2009, is the largest cryptocurrency by market value, Cuban keeps it as a store of value and not as a currency.
Cuban argued that Bitcoin has always been a better alternative to gold as a store of value due to its mathematical scarcity, which always drives its price up, “which is the reason why I have always maintained it.”
“What has changed everything is smart contracts,” Coban said. With the advent of Ethereum, which opened the way for the creation of what is known as [decentralized finance], and non-exchangeable tokens known as NFTs, the game has completely changed.
In cryptocurrencies, smart contracts are groups of code that execute instructions using blockchain technology or blockchains.
Cuban added, with Ethereum’s ability to adapt over time to optimization processes led by developers and programmers, its capabilities as a currency are becoming more and more effective.
He also expressed his remorse for not buying the “Ethereum” at an early date, which he started buying only four years ago.
Bitcoin – What is Ethereum?
Ethereum is a global tool for launching decentralized applications based on smart contracts and a strong cryptocurrency. It is the second on the list of the most popular cryptocurrencies after Bitcoin.
The primary value of the Ethereum network is not cryptocurrencies but the capabilities of the virtual platform. All types of Blockchain ventures are launched on an Ethereum basis, from digital ventures in supply chain management, sports, operating systems, travel, and online commerce to charities.
Who Founded Ethereum?
In 2013, a young Canadian programmer, founder of Bitcoin Magazine named Vitalik Buterin, and his colleague Gavid Wood, introduced the concept of the Ethereum Blockchain platform. Cryptocurrency in this network played a role not only as a means of payment but also allowed the exchange of resources for various web services operating in a peer-to-peer network. In the context of the ICO held the following year, the company managed to collect 31,000 Bitcoins, which was worth $ 18 million at the time. Vitalik Buterin succeeded in attracting the attention of banks and reputable financial institutions to the new project. The Ethereum network was launched in test mode in the summer of 2015. But the complete set of options became available only nine months later when the Homestead protocol was created and implemented.
In June of the same year, a vulnerability was discovered in the DAO code, which independently manages venture capital. Due to a bug in the program, hackers stole about a third of the cryptocurrency, transferring it to a ChildDAO chain branch, which was entirely under their control. However, these funds were frozen for a month due to the peculiarities of the DAO project.
Vitalik Buterin, along with part of the Ethereum community, decided to return the money to the investors. As a result, on June 20, 2016, a hard network fork (a fork in the Blockchain) event nullified hackers’ changes. But another part of the community decided to stay in the DAO project, so the Ethereum Classic crypto network was formed.
Bitcoin – Why do you need Ether?
Ethereum blockchain enables everyone to use all the benefits of distributed ledger technology when performing specific tasks. After the Ethereum system’s emergence, it was no longer necessary to establish a personal crypto network. For a relatively small fee, you can use a ready-made solution.
Tens of thousands of computer applications written in different programming languages were now able to run and interact with each other on the same site, greatly expanding Blockchain technology’s scope. According to Vitalik Buterin, Ethereum is a new internet with unlimited potential and prospects. Smart contracts, which were proposed at the end of the last millennium by Professor Nick Szabo, are the “secret ingredient” of Ethereum. In essence, they are PC applications that control the payment of the transaction. The program performs condition operations in the traditional contract but programmatically.
Example: If a person puts 10 dollars in a coffee machine, they will make a cup of coffee for you when the condition of paying for the cup is 10 dollars is met, but now it is safer, and it is used in susceptible decisions.
Smart contracts effectively support transactions and contract compliance in a fully virtualized environment.
Hence, every qualified programmer can create their application based on the Ethereum ecosystem and work according to a strictly defined algorithm. The system guarantees protection from failures and intruders, the absence of oversight, and the non-interference of external regulators. If one of the nodes serving this smart contract fails, the application will switch to another node and work stably. The information obtained during the intelligent contract implementation will remain unchanged thanks to the distributed storage system with thousands of nodes.
Ethereum network functionality allows:
- Launch of advanced smart contracts to manage logistics chains.
- Create applications of any kind (games, utilities, etc.).
- Digitize physical assets (oil, gold, precious stones, and manufactured goods).
- Manage client identification and document authentication services.
- Regulating decentralized trading platforms.
In theory, on the Ethereum blockchain, you can launch electronic voting in an election without worrying about fraud or altering the data. That would be impossible, thanks to the Blockchain.