Ethereum, is it the new bitcoin

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Ethereum and Bitcoin Blockchain Cross-Chain Fork – Future Network

Bytether – a project that is delivering a new way to connect and create a cross-fork between Bitcoin and Ethereun Network. Its a very interesting and intriguing venture even that its use cases and adaptation are yet to be seen.

Bytether Will Cross-Fork the Bitcoin Blockchain Onto Ethereum

It almost seems as if everyone wants to fork Bitcoin for one reason or another. This doesn’t mean every one of these forks will be successful or introduce something new, mind you. Bitcoin Cash has made its point very clear and is still around as an altcoin. Bitcoin Gold still has very little support and will conduct a premine of sorts. SegWit2x is around the corner, which may be the biggest challenge for Bitcoin to date. An interesting future awaits as far as that project is concerned.

All the ‘fork developments’ lead us today to Bytether, a different approach towards Bitcoin network compared to everything we have seen until now. It is planned to create a 1:1 cross-chain fork of the BTC Net and ETH Net. Without any clearness on the real purpose of designing the project like this, the team has copied the BTC blockchain and reissued it on Ethereum.

Instead, we will see the creation of the Bytether currency, with a total supply cap of 21 million. This will be an ERC20 token issued without an associated ICO, which is good to see. Moreover, this new token will benefit from all the technical advantages Ethereum has to offer, while maintaining the characteristics of Bitcoin. The team calls it “the new Bitcoin”, which is pretty ludicrous if you ask us.

Users that are planning to get involved at any degree, need first to verify their Bitcoin addresses using MyEtherWallet or Bytether website. After that, they will receive BTH on a one-to-one ratio relative to their ‘BTC goods’ during the cross-fork. On the other hand, those that have their referral codes shared with others, will receive more currency based from the “growth pool”. By far it is not a usual scheme that has been seen before, however that does not mean BTH will grow any value.

Although the Bytether approach can be considered to be rather novel, the last thing we need is another Bitcoin clone. Bytether’s team claims it will do things differently, though, as they want to create a vastly superior currency than Bitcoin ever will be. There is no reason to have a Bitcoin equivalent on the Ethereum network, as that is not what Ethereum was designed to provide – especially not if the entire supply of this new token is created out of thin air and distributed based upon BTC holdings and a referral program.

Whether or not Bytether will succeed remains to be seen. It is an idea very few people will get behind, other than to claim some tokens and potentially take advantage of the referral incentive. Other than that, it remains highly doubtful Bytether will ever be used for anything other than speculation. That alone could make it worthwhile to some people, but the general community will dismiss this idea as yet another attempt to ride Bitcoin’s coattails.

Is Bitcoin New Ethereum Killer?

Juan Villaverde is an econometrician and mathematician devoted to the analysis of cryptocurrencies since 2020. He leads the Weiss Ratings team of analysts and computer programmers who created Weiss cryptocurrency ratings.

Looking for the next Bitcoin (BTC, Rated “A-“)?

Some people have long thought it would be Ethereum (ETH, Rated “B+”).

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Unlike Bitcoin, Ethereum is more than just a payment system. It’s a platform for running an infinite variety of applications, called “smart contracts” or “distributed applications” (dapps).

In fact, Ethereum aspires to be a worldwide computer capable of doing anything that a single, standalone computer can do, with two key differences: It’s everywhere, distributed all across the internet. And nobody owns it.

That was the Ethereum dream. But then began the Ethereum nightmare — a traffic jam of epic dimensions.

You see, due to Ethereum’s low capacity and slow speed — plus huge demand — the door was flung wide open to a host of wannabe Ethereum killers, all aspiring to replace it and become the new smart contract queen.

And now the big news…

The king of crypto itself could become a smart contract platform

I’m talking about Bitcoin.

And I’m referring to a new generation of Bitcoin developers that have appeared on the scene.

They’re hell-bent on harnessing Bitcoin’s first-mover advantage to muscle in on Ethereum’s smart contract turf.

Their project is RSK (RBTC), and it has all the earmarks of becoming one of the toughest combatants in the smart contract war.

To be clear, RSK isn’t a run-of-the-mill upgrade to the Bitcoin blockchain.

It’s a whole new blockchain, designed as a sidechain that’s entirely dedicated to running smart contracts.

Think of a major highway strictly for moving (or storing) money. That’s Bitcoin.

Then think of a parallel superhighway for doing everything else. That’s RSK.

What about the miners? They’re the same as the Bitcoin miners. Plus, of course, it’s open to anyone with Internet access and a regular computer.

The major difference:

  • Bitcoin miners earn block rewards paid in newly-created Bitcoin (BTC).
  • RSK miners earn block rewards from fees earned from by RSK smart contract users. And they’re paid in RSK Bitcoins (RBTC).
  • A key reason it works: The RBTC and BTC are freely exchangeable one-to-one, anytime. In effect, RBTC is simply a form of Bitcoin used for running smart contracts.

Now, with this revolutionary change…

Bitcoin owners can run dapps

Let’s say you’re among the millions who own Bitcoin.

Until now, all you could do is transfer it, spend it or hoard it.

But with the advent of RSK, all that changes. For the first time since Bitcoin was born, you can run Distributed Applications.

Or, let’s say you’re a Bitcoin developer. Without RSK, the things you could do were very narrowly confined. Now, you can use Bitcoin to build a myriad of applications.

Given the sheer size and volume of the Bitcoin network, we have little doubt RSK is going to be a hit.

And Decentralized Finance (DeFi) developers could be among the first to switch.

First, because RSK and Ethereum code have a lot in common. Some might say they’re virtually the same. So with RSK, anything currently running on Ethereum should run equally well on Bitcoin. It’s a relatively easy move.

Second, because of the collateral. Right now, DeFi apps that run on Ethereum use ETH for collateral. If they switch to Bitcoin, they will use BTC. Given the security, stability and size of Bitcoin, that’s a big advantage.

Right now, for example, a major Ethereum-project is DAI, a stablecoin with the potential to disrupt the way money works. DAI is currently backed by ETH, which most people know much less about. Imagine if it’s backed by the widely known (and owned) Bitcoin instead!

And think about what Bitcoin RSK could do for a peer-to-peer lending and borrowing platforms. If they switch to Bitcoin, they have the potential to gain almost instant credibility, greatly enhancing their chances for success.

End result. Someday, Bitcoin could emerge from its current, limited-use cases (mostly a store of value), and become the fuel for running smart contracts in what’s bound to become a fuel-thirsty market.

Bitcoin vs. Ethereum: How Are They Different?

Mar 1, 2020 11:10 PM EST

You may have heard of Ethereum. You’ve almost certainly heard of Bitcoin. You may even have heard of people making fortunes off of them.

What you may not have heard is what exactly these two projects are.

What Are Ethereum and Bitcoin?

Ethereum and Bitcoin are two different versions of the same underlying concept called a blockchain token. Each was invented to work as a virtual currency. To understand how these two projects work and differ, you first have to understand the concepts of blockchain and virtual currency.

What Is Blockchain?

Blockchain is a form of digital data storage. In a blockchain, data are recorded on a series of digital ledgers that everyone can see; it’s called, appropriately, the “public ledger.” Permission to write any data onto this ledger is controlled through cryptography. Only someone with the right key can unlock a ledger to make any changes.

To prevent misuse, the public ledger is actually a series of databases that all store identical information. Whenever a change is made to one database, it checks its information against all copies. If the data are not consistent, and if the change doesn’t come with the cryptographic key, that change is rejected.

Enough changes to this ledger are collected into a “block” of data that can no longer be altered, and these blocks are stored in a chronological chain in the database. Hence the term “blockchain.”

Think of it like a roomful of accountants, each watching each other, each keeping the same set of books. If someone makes a change to one book it’s easy to see the problem and correct it. Only an authorized user can come into the room and give all of those accountants the proper ID to make any changes. And each time a book fills up, it gets put on the shelf next to all the others.

The core concept of blockchain is to create unique digital ownership. If the blockchain says that I own file 123ABC, then I own it. I can make as many copies of that file as I want, but the blockchain will still say that there is only one file 123ABC and I own it.

A blockchain token, then, is a digital asset created using this system. A token is simply an entry on the blockchain that has a unique identification and an owner. The security that blockchain provides makes it (so far) impossible to duplicate the entry or change its owner.

Again, think of it like our accountants. Say they created a row in their books and entitled it “Asset Five: Owner John Smith.” Asset Five would now be a token, a unique asset owned by this person. Someone could try to erase it, or change its owner or add sixteen more “Asset Fives,” but each change would be spotted and fixed.

Asset Five, whatever that is, would belong to John Smith until he decided to change that. That’s a blockchain token: The blockchain is a secured database. A token is a section of that database saying “this is a digital asset, and it belongs to this person.” The public nature of the database makes sure that no one can change ownership of that asset without permission.

What Is Virtual Currency?

Bitcoin and Ethereum are both forms of virtual currency. So what is that?

Virtual currency is simply currency that only exists online. It has no real world counterpart. Bitcoin, for example, only ever exists as numbers on a screen. The blockchain records how many exist and who owns each one, and your personal account tells you how many bitcoins you personally own. The same goes for Ethereum.

In both cases, one token amounts to one unit of the currency. In the case of Bitcoin, one token on the blockchain is one bitcoin. In the case of Ethereum, one token on the blockchain is one ether because the project Ethereum calls its currency units “ether.”

This is in contrast with traditional currencies like the U.S. dollar, which has physical notes.

If all that sounds borderline ridiculous, it’s really not that bizarre. Most of the world has run on semi-virtual currency for decades. In fact, the U.S. dollar itself is a mostly virtual currency by now.

At time of printing, the Federal Reserve measured approximately $1.7 trillion in circulating U.S. notes, but more than $3.7 trillion in liquid currency. It measures another $14 trillion in time-bound currency, money that is tied up, such as in a savings account or a time deposit. Together these two figures (officially “M1” and “M2”) make up the total money supply in the United States, and it’s more than 10 times as large as the amount of physical currency in circulation.

More than one in every 10 dollars just in America alone exists purely on a computer screen, just because a database somewhere says “this dollar exists and it belongs to Eric Reed.”

A virtual currency simply has no real world counterpart. It is a currency that exists entirely online. On the blockchain there is an entry that creates a token. That token is a single unit of currency, and it has a listed owner.

Not all that dissimilarly from how your bank works.

What Is Bitcoin?

OK! Now that we’ve covered the basics, what are Bitcoin and Ethereum?

Each of these, as you now know, is a virtual currency built using blockchain. Bitcoin was the first virtual currency. It started both that concept and the concept of blockchain itself when it was announced by an anonymous programmer who published a whitepaper under the name Satoshi Nakamoto (a little bit like publishing under the name “John Smith” in the U.S.).

Bitcoin is a pure cryptocurrency, which is to say that it does nothing else. The Bitcoin blockchain has no function other than track all the bitcoins in existence and periodically add new ones. The public ledger accounts for each token and its owner (or owners, as it’s possible to own fractions of a bitcoin), along with that token’s full history of ownership back to when it was created.

Whenever someone sells or trades their bitcoin to someone else, the ledger updates this record.

Bitcoin is modeled after gold. The algorithm behind this particular digital currency allows the blockchain to periodically make new tokens but it also has a hard limit. Once 21 million bitcoins have been added to the database, it will never add any new ones.

New bitcoins are added, appropriately enough, through what’s called “mining.” Mining is part of the cryptography process that unlocks the database so that bitcoin holders can transfer their tokens. Part of this involves solving an extremely processer-intensive series of equations.

To do this, the user sends his or her request to the Bitcoin network. Other users connected to that network operate as “miners.” Their computers set to work solving these equations. Eventually one will come up with the correct answer. This user will unlock the blockchain, review all transactions to make sure that the current one is legitimate and then update the record. In exchange, a number of new bitcoins are created.

Those bitcoins are added to the database and awarded to the user who unlocked them.

Bitcoin in a Nutshell

That’s a lot. Here are the basics:

• Bitcoin is a digital currency based on blockchain.

• It is a pure currency, it doesn’t do anything else. The only purposes of a bitcoin token are to save it or spend it.

• It works by having other users on the Bitcoin network check the record of transactions to confirm each new transaction.

• It is modeled after digital gold. The number of bitcoins in circulation grows slowly and will someday cap out at 21 million.

What Is Ethereum?

So that’s Bitcoin, the digital currency that drove people so mad that they spent $20,000 just to not actually get their hands on one. Now, what’s Ethereum?

Glad you asked. Ethereum is in some ways more advanced than its predecessor.

Ethereum is the name of a project that runs the Ethereum network. The actual digital currency that this network uses is called ether. Now, you can buy, sell and spend ether just like any other digital currency. Plenty of users do. But the key to understanding Ethereum’s bigger picture is this: Like any database, you can enter more or less anything onto a blockchain network. This includes actual computer code itself.

For all its advances, blockchain is ultimately a form of data storage. This lets programmers use it to store data for local applications, or to write scripts directly to sections of the blockchain database and execute them from within it. Although this is not quite right, think of it like plugging formulas and scripts into cells on an Excel spreadsheet. You can write the code directly into the database and, because Excel is built to recognize and execute that script, it will perform the operation.

Ethereum takes advantage of this to do two things. The first is called Decentralized Apps, or “dApps.” They are beyond the scope of this article, but essentially dApps are programs that write their data to and from a blockchain instead of local sources like your hard drive.

The bigger point of Ethereum is that it creates what are called “Smart Contracts.” These are self-executing contracts that take in data, execute orders and move money around automatically. That idea has a lot of people in the business and financial world very excited.

Here’s how it works: Let’s say John orders a pizza from Susie and agrees to pay her $20. In the real world, Susie makes the pie, delivers it to John’s door and hopes that he has the money. Or John pays in advance, then hopes that Susie will actually make the pie and deliver it to his door.

A smart contract could act as a middleman in this transaction. John and Susie would create their contract. Twenty dollars’ worth of ether (the currency used on this network) would go into escrow pending completion of the contract. Then Susie would deliver her pie, they would confirm delivery and the money would be released into Susie’s account.

This might seem trite in the context of pizza delivery, but think about it in the form of an Amazon package. Let’s say you pay $100 for two dozen Papa Smurf hats (we don’t judge here). Instead of having that money go directly to the seller, it would wait in escrow until Amazon’s delivery team digitally confirms delivery of the package, at which point payment would happen automatically.

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