Ethereum (ETH) Smart Contracts Still a Strong Bet for the Future of Cryptocurrency
Ethereum (ETH) may be a well-known cryptocurrency that rivals even the flagship Bitcoin (BTC), but few people understand the unique application of blockchain technology that makes Ethereum (ETH) such a powerful force in the cryptocurrency world.
The Smart Contract system that first brought Ethereum (ETH) to prominence is still as relevant today as it ever was, if not more so. As an increasing number of organizations become accustomed to using Ethereum’s (ETH) Smart Contract system in their day-to-day operations, the Ethereum (ETH) cryptocurrency coin will likely come to further dominate the cryptocurrency and blockchain space.
What Is a Smart Contract?
A Smart Contract is an application of blockchain technology that allows for a wide variety of agreements, often multi-staged, to be conducted between parties using a distributed network.
The Smart Contract progresses and closes as various pre-defined requirements are met. Because the contract between the parties is hosted on a distributed network, it is impossible for an inside or outside party to corrupt or interfere with the operation of the contract.
What Exactly Can a Smart Contract Do?
This revolutionary technology allows parties from all over the world to create mutually beneficial arrangements without the need for an overarching legal system to monitor and enforce the terms of the contract.
The contract terms are agreed upon by all relevant parties, and then the contract progresses to its conclusion based on the underlying blockchain network recording the completion of the agreed-upon contract terms.
Smart Contracts can, of course, be used as a simple peer-to-peer transaction system, which is what Bitcoin (BTC) is, but they also have a much broader range of additional potential applications.
Smart Contracts can, for example, record information about an asset to be transferred, register ownership, conduct business deals, direct voting procedures or even run decentralized autonomous organizations without the need for fixed leadership and management roles.
Therefore, while Bitcoin (BTC) is limited to simple peer-to-peer transactions, Ethereum (ETH) can facilitate a much broader range of additional functions.
Ethereum (ETH) and Adoption
Like any new technology, blockchain and cryptocurrencies must go through an adoption phase, where people become accustomed to incorporating new ideas into their lives and the ‘kinks’ in the system are worked out through direct application in the real world.
Ethereum (ETH) has already seen widespread adoption by major financial institutions and some large corporations, and this process will only accelerate as the technology improves and people become more accustomed to using Smart Contracts to facilitate their business dealings.
As people become accustomed to using Smart Contracts, they will increasingly rely on Ethereum as a means of payment in related transactions. As the adoption of Smart Contracts increases, the value of the Ethereum (ETH) coin will increase alongside.
Buying Ethereum (ETH) Now
While the rout in cryptocurrency prices in 2018 has seen many of the weaker cryptocurrencies and blockchain applications fall to the wayside, it has left the survivors poised for a major breakout in value as the adoption of cryptocurrencies and blockchain technology continues to accelerate around the globe.
Ethereum (ETH) with its Smart Contract system promises to be one of the industry leaders in the coming years, and its current valuation makes it a great time to buy and hold for the long term.
Disclaimer: The author of this article does not currently invest in cryptocurrencies so that they can offer an unbiased perspective on the cryptocurrency and blockchain space.