As a layman, we perceive all cryptocurrencies as a form of digital money which has gained immense popularity in recent years. But this may not be the truth in all cases. We have a hundreds of digital currencies operating right now and there are several distinctions among them. Bitcoin may be different from Dash and PotCoin may be different from IOTA. This article is primarily focused on the subject of Monero vs Ethereum.
Monero vs Ethereum
Monero vs Ethereum is a widely discussed topic amongst cryptocurrencies enthusiasts. Both currencies have appreciated their value in recent times securing a strong position in the market. Nevertheless, both are different in its own nature.
Ethereum was created by developers that expanded the possibilities offered by blockchain technology. Many blockchain projects had a singular motive associated with it despite of vast amount of resources needed to maintain blockchain. In fact, Ethereum was the one to bring concept of smart contracts. These are contracts that execute themselves. This opened the possibility for a number of smart contract systems and decentralized applications to be built on it. Here are some examples of applications:
- Peer to peer e-sports platform
- Smart contract systems like The DAO
- Gold backed crypto asset with an expanding gold reserve
Ethereum’s hashing algorithm is resistant to AISC meaning that mining is even possible with a normal graphic card and there is no need for advanced mining hardware. The block time is much faster and the transaction fees is low as well. However the system is susceptible to DOS attacks. There are some major security issues associated with it as the nature of smart contracts is much complex.
Moving on to the debate of Monero vs Ethereum, we can say that there is a substantial difference between Monero and Ethereum. The purpose of Monero was same as Bitcoin which was to allow users to transact value between themselves in a decentralized manner. Monero is similar to Ethereum with an ASIC-resistant hashing algorithm but the block time average is slower than Ethereum. However it has focused more on the aspect of privacy. The ring signature system provides anonymous transactions. The Monero wallets are more protected by viewkeys meaning that only the owners can see their balances on blockchain. In terms of privacy and anonymity, it has overcome Ethereum.
The debate of Monero vs Ethereum is totally subjective. It depends from user to user on how each of them gets the benefits out of each platform. Ethereum is basically a decentralized platform that allow users to issue tokens and produce complex applications and smart contract systems. On the other hand, Monero is a privacy-oriented cryptocurrency to resolve fungibility and privacy issues that were original founded in Bitcoin and it can be used as an anonymous currency. The notion of Monero vs Ethereum is ever-going, nevertheless, there are a number of other currencies as well that have crept into the market and spreading their influence on the current global financial condition.