We have all heard the success story of Bitcoin and Ethereum. We have heard how people in a short span of time transformed from the rags to the riches.
You may be worried about using Cryptocurrency in the future, but you should get accustomed to it because digital currency is turning out to be the reality now.
With the advent of 3.0 internet, it is hoped that the decentralized currency is only getting better in the coming days.
So start your Crypto transactions and buy bitcoin now!
Let’s find out the point of intersection among Bitcoin, Ethereum and Web 3.0.
Bitcoin is a digital currency that is decentralized in nature. It acts to record the transactions in the distributed ledger called Blockchain.
Now the question,
Why is Bitcoin a Cryptocurrency?
Actually, there is no physical Bitcoin but only the balance that is kept on the public ledger. Everyone and anyone have transparent access to the ledger. The Transactions here are all verified through a massive amount of computing power.
They are decentralized and they are beyond the control of the Government. That is why Bitcoin is neither issued nor backed by any banks or government.
Bitcoin was launched in the year 2009. Since then it has covered quite a distance presently it is the largest Cryptocurrency in the world in terms of market capitalization.
Just like the standard currency, Bitcoin has its process of safeguarding and preventing fraudulent activities. Blockchain actually works to create the safety net for Bitcoin.
Ethereum is a decentralized Blockchain platform that works to establish a network between peers. It verifies certain application codes called Smart Contract.
Smart contracts allow the participants to make transactions. Here the transactions are generally sent from one person or account to another user-created Ethereum account.
Decentral Application developer develops a rich ecosystem by the deployment of Smart Contracts.
Ethereum’s large user base motivates the developers to develop some application in the network, that works to further strengthen Ethereum as a decentralized Application like the Defi and the NFTs.
This is a completely new Internet breed that aims to become decentralized. Using the network user would be able to collaborate and interact without worrying about the data specific repositories.
Under this breed of network, users will be able to get more transparency and they will see endless resources and content accessible to all. Web 3.0 Cryptocurrencies are decentralized projects that use Smart Contracts.
The notable Cryptocurrencies under Web 3.0 include Chainlink, Helium Audius, Filecoin Flux, ZCash, Livepeer, and others.
The Common Point Between Ethereum And The Web 3.0
Web 3.0 currencies like Ethereum use are decentralized projects that use Smart Contracts. Through the establishment of Smart Contracts, the Decentralised Application developers create a rich ecosystem wherefrom they are benefited. This practically goes the same with Web 3.0.
Though Bitcoin and Ethereum are completely different Blockchain but they have some elements in common.
While many tend to think that Bitcoin and Ethereum are competitors but it is not actually. Bitcoin is referred to as Digital Gold and Ethereum is referred to as Digital Silver.
Actually, both Cryptocurrencies use Blockchain technology to create a layer of value for the Internet. Both the systems are secured by decentralized networks.
Decentralization is the core principle of Blockchain Technologies and this makes Bitcoin as well as Ethereum.
The only up-gradation that Ethereum possesses against Bitcoin is Smart Contracts. Bitcoin serves the purpose of storing value, with Ethereum you are going to get the flexibility of Ethereum that gives the blockchain limitless possibility.
Say Bitcoin, Ethereum, or Web 3.0, they are incomplete without the role of Blockchain. Actually, Blockchain assists in the verification as well as traceability of the transactions.
Blockchain helps to store information electronically. Blockchain helps provide security to the transactions. It also aims to reduce the cost of compliance. Blockchain also speeds up data transfer.
This is inferred through the discussion that Bitcoin, Ethereum, and Web 3.0 Cryptocurrencies are fast becoming distant realities.
All of them have the necessary infrastructure to provide safe and secure transactions.
Safety, Security, and Anonymity—all these are not sought by the Traders who search Democratic business networks minus external regulation.