Bitcoin still sits firmly on the throne of the crypto currencies. But the pursuer Ethereum is approaching with rapid steps. In the middle of the year it would almost have been a bit of a crash. These are the reasons.
In June, the crypto community was waiting for “flipping” – the wake-up of Bitcoin by Ethereum. The persecutor crypto currency Ethereum should push the old-established “first mover” Bitcoin in the stock market value from the throne, prophesied among other things also “Coindesk”. At that time, Ethereum was worth nearly 400 dollars and so much on the advance as never before in the bit, in comparison to Bitcoin still quite short, existence period. But what was it that pushed Ethereum so strongly towards the top?
Ethereum’s success secret – is it enough for flipping?
The vigorous boom came from well-known Wall Street and tech companies like JPMorgan and Microsoft, who suddenly registered increased interest in Ethereum. In February, these companies even formed the Enterprise Ethereum Alliance. Through this project, the companies that were concerned wanted to use the Ethereum platform to integrate Blockchains into their own infrastructures. The market leader Bitcoin was not suitable for this venture. For while Bitcoin was thought of as a currency from the outset, Ethereum founder Vitalik Buterin Ethereum has developed as a platform on which two parties can enter into a contract – without the involvement of a third party. These so-called smart contracts should ensure greater trust between the contracting parties. The Ethereum platform is operated with the “in-house” currency Ether, which acts on the platform as a means of transport for information packets. Ethers can serve as a traditional currency, but can also be used for virtual shares, assets, membership certificates and more. Ethereum – Bitcoin has so far predicted this diversity. Successful “Distributed Autonomous Organizations”
The crypto system created by Buterin with Ethereum has created another important element: Distributed Autonomous Organisations, or in short: DAOs. These are virtual companies or companies. The voting rights are allocated on the basis of the sum paid. Accordingly, the DAO mainly collects money. Subsequently, all investors together determine in which projects this money is to flow. There is not a board or a general meeting, and everything is fully technicised. This means that the DAO is not only decentralized, but – as its name implies – autonomous. There is no boss, the code already exists. Therefore, the company can not be dissolved or cease operations, unless all token holders decide unanimously. Even if the concept of the DAOs was new, it was willingly accepted: The first DAO collected in May a proud 150 million dollars. Shortly before the breakthrough comes the splitting.
Just before Ethereum was finally able to flip flip and hit Bitcoin from the throne, however, just the first successful DAO became a victim of a hack. It stole some $ 60 million worth of data, which has justified the concern of the Ethereum community. On the 21st of June, the course finally collapsed – from $ 319 to painful 10 cents. After the hack was co-ordinated within the Ethereum community – with the result that the code should be changed later so that the investors, who had become victims of the hack, their money back. The alteration of the blockchain, however, was not intended according to the original Ethereum philosophy. This fueled the resentment of some “Ethereum traditionalists” and finally culminated in a hardfork – the demolition of a new currency called Ethereum Classic or briefly ETC. Even if this solution had its place in Buterin’s Ethereum concept – the ethereum euphoria, which had pushed the course to date, the Hack and the subsequent Hardfork put a considerable damper.
What is Ethereum today?
Even though the Hardfork at the height of the Ethereum euphoria was a hard blow for the advance of the Bitcoin competitor: Ethereum still defends its second place after the market leader Bitcoin still sovereign. The current Ethereum price moves at $ 327. The euphoria has cooled down, but perhaps this is not a bad starting point for any flipping – the event when the coin rotates. The bitcoin itself is not completely secure in the saddle. On October 25, for example, a new Hardfork in the Bitcoin universe and the spin-off of Bitcoin Gold could occur. Finally, the counter-attack by Ethereum in June showed at least one thing: That the crypto platform from Buterin can rely on a strong backing from well-known investors and companies. On this basis, Ethereum could provide some surprises in the future.
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Categories: Crypto Currency