This makes Ethereum the second most popular digital currency in the world after Bitcoin by market capitalization. However, there are many benefits of Ethereum, and some reasons which makes it such a strong dominance in the cryptocurrencies.
Ethereum is more than a cryptocurrency; its built around a decentralized platform that allows the execution of smart contracts and decentralized applications (dApps). In simple words, smart contracts are self-governing contracts written into code which deal the terms and conditions, making them transparent and highly resistant to manipulation.
Ether (ETH) is the native cryptocurrency of the Ethereum platform, used primarily as “fuel” paying for transaction fees and services on the Ethereum network. Ethereum was born as a platform for decentralized applications as opposed to Bitcoin which was intended as a peer-to-peer electronic cash system.
One of the prominent features of Ethereum is its capacity to host decentralized finance (DeFi) applications, which are financial services that function on a distributed network without intermediaries such as banks. Examples of DeFi applications on Ethereum are lending platforms, decentralized exchanges, etc.
Ethereum has also led the development of non-fungible tokens (NFTs) — unique digital assets that can represent anything from art to collectibles. NFTs have also cemented Ethereum as the superior platform.
Ethereum is not without its problems, however. However, it has struggled with scalability and high transaction fees, leading to the release of Ethereum 2.0, an upgrade to the network intended to resolve these shortcomings and make the platform more efficient and scalable.
Despite these challenges, Ethereum continues to be one of the most influential and widely used digital currencies in the world, with a vibrant ecosystem of developers, users, and investors dedicated to its growth and development.