How Ethereum is Shaping Up The Cryptocurrency World
While bitcoin’s worth is going off the charts once again and ETH getting dearer as well, it is hard to emphasize that the crypto world has much more to it than coin trading just like stock exchange.
Take Ethereum contracts for example. If you follow the crypto news you will see that almost every new coin and its ICO is being launched via Ethereum contracts. The concept behind it is really simple. Ethereum contracts become part of the Ethereum blockchain that can move value around to the people involved in the contracts and it is a permanent solution to the people hoping to have their contracts and investment fulfilled and protected.
What we do is we make a contract and allow the concerning parties, usually coin purchasers and coin creators to agree on revenue sharing and other options. Once the Ethereum contract is in place, the contract is automatically enforced over the blockchain and no one can mess with it as long as the contract is supposed to run.
It is truly a genius application of the blockchain technology, whose real usafe goes far beyond using it as a ledger for bitcoin, Ethereum and other cryptocurrencies.
Ethereum contracts have made introduction of new coins far easier than before. We have had several new coins based on the Ethereum contracts. Ethereum unlike other blockchain platforms is programmable and you can use it to custom-tailor your agreement with the other party.
While the cryptocurrency Ether is based on the same blockchain, it has no direct relationship with the Ethereum contracts. This makes things a lot easier for the Ethereum people to enforce the contracts.
Before Ether had arrived on the scene, it was difficult for a new coin to start in the crypto world. There is already a lot of skepticism about any new coin and it had to persuade users to trust its system and they will play by the rules of the book. But, there was no guarantee that they could do it and investors had no security once their money had been deposited. Many scams didn’t help the cause and new Initial Coin Offerings were rare. Enter Ethereum contracts and the speed at which the world is moving to cyptocurrency and accepting new coins is just phenomenal.
So, Ether and its smart contracts get all of the credit for a host of ICOs that you see around the place. The future of smart contracts go beyond ICO and crypto I have to say.