Blockchain technology has changed the way we think about the world of finance, trade, and currency. Since it exploded on the scene in 2009 with the introduction of Bitcoin, it's changed the way the world operates.
It's easily one of the most important tech innovations of the 21st century - providing a model for exchange and trade that doesn't require the input of any world government or large power.
Of course, there are all sorts of blockchain-based currencies these days, and it can feel like there's a lot to keep up with. For example, what's the difference between Avalanche vs Ethereum?
These are two popular cryptocurrencies that have their fair share of supporters. However, if you're thinking of investing in one form of crypto, you'll need to take the time to understand the benefits of one over another.
What do you need to know? Read on and we'll walk you through the details.
What is Ethereum?
Of all the cryptocurrencies out there at the moment, Ethereum is one of the oldest and most well-known. Ethereum changed the game when it was released, as it was the next big blockchain to enter the market after Bitcoin.
Its creation was based on improving what Bitcoin had started, with the goal of improving the functionality of the blockchain. It did this by introducing smart contracts, reducing the need for high resource use in mining, and helping drive innovation across all blockchain technologies.
For this reason, Ethereum quickly became one of the fastest-growing and most popular cryptocurrencies in the world.
At this moment, the market cap related to Ethereum is hundreds of billions of dollars. While still trailing the overall value of Bitcoin, Ethereum is well worth taking seriously, and the innovations it's provided might mean longer legs as the years go by.
You just have to take a look at the ethereum cad price to get a sense of why investors are looking to add more to their portfolio at this advantageous time.
Major Benefits of an Ethereum Investment
The major reason to invest in Ethereum as opposed to some other forms of crypto that are out there? It's because Ethereum has kept itself on the cutting edge of crypto development.
In fact, at this moment it is on the verge of a major change in terms of scalability and functionality. The network will experience a major upgrade in the near future in the form of the ETH 2.0 update.
This update is the biggest upgrade that any blockchain network has ever undergone. The goal of this change is to switch the Proof-of-Work mechanism and convert it to a Proof-of-Stake system.
This Proof-of-Stake system is much more energy efficient, and it provides users and developers with improved usability and more options for the future.
Ethereum is also, given its popularity, one of the most accessible of modern cryptocurrencies. While you might experience difficulties using or accessing some of the more on-the-cusp cryptocurrencies, Ethereum is available almost everywhere.
Outside of Bitcoin, it's the easiest to use and access in everyday transactions. Even tech giants like PayPal allow you to buy and trade in Ethereum on their platform.
What is Avalanche?
If you haven't yet heard much about Avalanche, that's because it's fairly new to the cryptocurrency market. It's a next-generation crypto model that is based on the newer Defi protocol, which only went live in 2020.
There's a lot of discussion about Avalanche on social media, with the topic trending quite frequently. Safe to say - people are excited about it and about the potential this new crypto has.
Avalanche, to be fair, does have a lot of similarities to Ethereum. It also allows decentralized apps and smart contracts on its platform - the main innovations that Ethereum introduced.
However, this new crypto takes it one step further. With Avalance, users can enjoy multiple specialized blockchain network operations all at the same time. This helps to avoid the kind of congestion that Ethereum and Bitcoin are often plagued with.
At the same time, it helps to keep the transaction fees lower on the platform. Ethereum, although a huge game-changer, has had trouble growing. They have run into many scalability issues as the years have gone by.
The philosophy behind Avalanche's creation was to avoid these problems and provide a path forward for Crypto that wouldn't fall prey to these issues.
In fact, Avalanche is well-positioned to try and pull developers and investors over from Ethereum to their new crypto, as they promise the same advantages with none of the potential drawbacks.
In addition, Avalanche provides more support for compliant Dapps. These are protocols that allow for complete rule sets, which help Avalanche to live up to increasingly complex regulatory requirements.
Avalanche is much more engineered to be able to function well in industries that are highly regulated. While you may need to look into a few Avalanche tips to get used to this new crypto, the potential benefits are undeniable.
Understanding Avalanche vs Ethereum
Let's face it: there are a lot of cryptocurrencies out there in the world. It can be hard to keep on top of the differences between them all, and the benefits of going with one over the other.
If you look into the above information, you'll be able to parse the benefits of avalanche vs Ethereum, two forms of crypto that have an interesting relationship with one another. Where you'd rather invest your money is up to you, but this information should help you to make an informed choice.
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