Banking: Everyone is allowed to access Ethereum, and the lending, borrowing and savings products built on it is an internet connection.
An open internet: Users can control their own assets and identity, instead of them being controlled by a few mega-corporations.
A peer-to-peer (p2p) network: Ethereum allows users to coordinate, make agreements or transfer digital assets directly with each other.
Censorship-resistant: No government or company has control over Ethereum.
Commerce guarantees: Users have a secure, built-in guarantee that funds will only change hands if they provide what was agreed.
Composable products: All applications are built on the same blockchain with a shared global state, meaning they can build off each other. This allows for better products and experiences and assurances that no-one can remove any tools apps rely upon.
Since Bitcoin stands as the pioneering and most renowned cryptocurrency, drawing a comparison between Bitcoin and Ethereum proves highly beneficial when analyzing Ethereum. As Bitcoin's primary competitor, Ethereum is ranked #2 on most cryptocurrency platforms, while Bitcoin is ranked #1.
While this section focuses on comparing Ethereum and Bitcoin, it's essential to acknowledge that they are not of the same kind. Ethereum operates as a decentralized blockchain, where cryptocurrency is merely one of its numerous applications (financial services, games, social networks, etc.). In contrast, Bitcoin exclusively functions as a cryptocurrency, akin to the virtual counterpart of a dollar.
The circulating supply of a cryptocurrency represents the number of tokens that have been issued and are actively available in the market. For Bitcoin, over 90% of its total supply has already been mined. On the other hand, Ethereum does not have a finite supply.
While the concept of unlimited supply may raise concerns for Ethereum, it actually contributes to its stability as a cryptocurrency and sets it apart from becoming the next Bitcoin. This characteristic prevents scarcity-driven market behaviors and allows for a more sustainable and adaptable ecosystem for Ethereum, ensuring its continued relevance and functionality.
Market cap is calculated by multiplying the asset's current price and its circulating supply.
