Ethereum and the rival Bitcoin are based on the same model that allows the records trade to be public. The identity of those who pay in virtual coins is not known. Even so, it is known when transactions are made and how big they are.Technology EOS for Business helps provide the best services.
Banks are not pleased with this transparency but are attracted by the fact that virtual coins come from one e-wallet to another much faster and cheaper than the money transferred conventionally through the financial system. And Ethereum has managed to spark the interest of banks through its software that allows more complex operations than rival Bitcoin. It can be used to create online financial markets and execute scheduled contracts automatically when certain conditions are met.More info here.
The operating mechanism of the Ethereum currency allows for some frauds, such as pyramid schemes. But this is not a very big hindrance, as such frauds can also be made in the conventional financial system.
Ethereum also managed to attract the interest of large IT companies. IBM believes that the same virtual money transfer system can be used to control home-connected objects in the internet. And for Microsoft, the complicated virtual currency technology can be used to simplify cloud computing.
Ethereum has been operating for less than a year. The founder of the coin is VitalikButerin, a 22-year-old boy who was born in Russia, has grown up in Canada and now lives in a country full of bankers, Switzerland.
Find out more on this helpful resource: https://en.wikipedia.org/wiki/Vitalik_Buterin
The other tandem is Visa / Mastercard, the two major international card issuers – in fact huge communications networks present and needed at every ATM in street corner shops or online. For them, the blockchain threat is vital, which is why they cannot afford to ignore it. On the other hand, they have to make a very fine balance between the legal regulations in each market where they operate and a technology that would strengthen their presence and independence. But it is of utmost help that the central and commercial banks have jumped into the boat, if only to be thrown later.
Everyone has been talking about a year’s bigger bitcoin commissions.Users are frustrated by the problem, and average commission fees have risen. Bitcoin is no longer a cheap payment method.Despite growing costs and debates on this issue, users say simpler ways exist to lower bitcoin commissions and that people do not take advantage of.
The issue has been discussed recently when it was revealed that one of Bitcoin’s startups, Coinbase, facilitates nearly half of all transactions. The problem in this situation is that Coinbase could help users (not just their own but also other companies) to group the transactions by implementing some tech characteristics, such as Segregated Witness.
Since the change for Segregated Witness has been activated in the Bitcoin network. many people are wondering why Coinbase has not implemented it yet.The final answer can come from any of these companies, from others completely unexpected or from nowhere – this is the case if the technology will provide the solution for the full democratization of the money. One thing seems to be already certain – over two decades now, money, with all that they mean, will be unrecognizable, just as the information was 20 years ago – at the beginning of the Internet.
Faced with Visa or MasterCard, which have to process a few thousand transactions per second, Bitcoin is just processing two.
Even so, the way bitcoin has managed to resist so far, creating a real economic system around it, is remarkable. It has been so well thought out from the start that nothing will prevent it from operating indefinitely for the same specialized purposes as before.
But there are things the Bitcoin experiment has already begun to change. Most importantly, and that was really noticed even by card issuers, some of the big banks, stock exchanges and even governments is the technical principle underlying Bitcoin: give back.The cryptocurrency market value at the time of publishing this article is over 330 million dollars. The top three coins as capitalization are Bitcoin, Ethereum and Ripple.