Bitcoin and Ethereum for dummies.
To everyone not paying attention, Bitcoin has been on a downward trend for dominace for awhile.
Ever wonder why?
There isn't really anything significant going on with Bitcoin development beyond the Lightning Network meme
An easy way to explain it is with a direct example. Ethereum Classic(ETC) is literally the original Ethereum chain but wasn't able to create a dominant position. Since all of the developers/coders/teams/groups are all working on Ethereum(ETH), that chain continued on and is the dominant chain with all of the functionality/developments. ETC has nothing going for it and will not ever be able to overtake ETH chain ever again.
BTC has nothing going for it(unless you count Lightning Network with a few thousand users as something significant). So in this situation we are in a reverse scenario. Bitcoin Cash has all the potential due to Gavin Andreson working on Graphene while we have other people successfully testing 1 TB blocks. And there is talk of enabling OP codes on Bitcoin Cash so that Smart Conracts can be enabled again(which if you remember Vitalik left being a bitcoin dev to make Ethereum due to this).
Bitcoin Core has OP codes disabled so that there are no Smart Contracts available, the future is Smart Contracts. Just having something that can be used as a currency is fine, but it isn't what the majority of people are going to use in the future. The future is going to be from the massive business world(who need smart contracts) + gaming community coming onboard with ETH, games like cryptokitties prove that people will spend thousands of ETH per day on a simple game. Once more complicated MMOs and RPGs and loot based games come out you will see a lot of people who switch to playing ETH based games because they can make money.
Ethereum has a lot of demand from the business world and gaming world
ETH based games solve the problem of being banned for selling online WoW/Runescape/Guildwars currenty/items from the game. People get banned permanenelty for that kind of thing. Whereas ETH based games encourage the sale of assets through exchanges like 0x or Etherbay.
ETH based assests for in-game items are ERC720 and ERC721 items, while ERC20 is the fungible token(which means token x is always token x, it is exactly the same, 1 ETH is always 1 ETH no matter where it came from). The ERC720 and 721 tokens are particular items, where a game might have 100s of different kinds of sword for example, they would make 100 different ERC720 or 721 smart contracts. When someone wants to buy a sword from the shop, they would send ETH to the smart contract address, the smart contract then processes the transaction and outputs the sword as an ERC720 or 721 and the player now owns it. They are free to do with the sword as they wish, and could sell it to another player later if they want to.
BitcoinSegwit is years behind in having any smart contracts(as they are disabled). Ethereum has had more transactions per day than BTC for awhile, it also is cheaper fees per tx as well. Major upgrades coming with Sharding/Plasma/POS are going to eventually make Bitcoin completely irrelevant(and likely Bitcoin Cash).
Vitalik used to be a bitcoin developer and left specifically because the bitcoin core devs/blockstream devs lost their way. Vitalik knew he couldn't integrate smart contracts on bitcoin because of the toxic culture and how they disable all of the OP Codes he needed to make smart contracts. So he made Ethereum.
Lightning is a meme. LN requires users to be online at all times to receive a payment, an absolute joke when compared to Ethereum's Plasma.
From Reddit: https://www.reddit.com/r/ethereum/comments/6sqca5/plasma_scalable_autonomous_smart_contracts/
Plasma is a way to create a blockchain (as a set of smart contracts) within a blockchain, by simply committing the root hash of the "meta" child chain (Plasma) on the main chain (Ethereum).
The child chain acts kind of like state channels on steroids, and only the final state transition hash is committed to the main chain. If someone commits an invalid plasma state transition hash/block, the protocol incentivizes committing "fraud proofs", where parties who are interacting in the child chain can show that someone behaved maliciously, and penalize them, reversing the faulty transition.
The child plasma chains can themselves also have child plasma chains, and those chains can have child chains, etc... this "tree" of chains can be reduced through MapReduce, such that billions of transactions/state transitions can be trustlessly/verifiably encoded as a simple hash committment on the root chain.
Lets not forget about Sharding either!
Sharding is a way of splitting possible accounts and contracts into a subspace based on certain factors, an exmaple being splitting all addresses starting with 0x111111 into a shard. Every Shard has its own set of validators(requires Proof of Stake implementd first), and these validators will not normally need to validate all the shards(so you can see how it becomes more efficient!). Transactions between accounts within the same shard would work in the same way as they work today.
For the contracts wishing to communicate across multiple shards they will have to employ special techniques that are based on the concept of transaction receipts. The crucial difference between calling a contract directly and verifying the receipts is that for direct call you need to run the code of the contract you're calling. And for verifying a receipt you only need to be sure that receipt cannot be produced by anything else than the transaction you want.
Accepting a payment in tokens managed by a different shard, you would have to generate the payment ID and give it to the payer, ask the payer to pay in the remote shard with payment ID, and show the receipt. Sharding allows scaling Ethereum further, because not all nodes of the network will have to execute all of the transactions.
So in conclusion, ETH is the future. ;)
yikes! here is my opinion. Bitcoin delivered. Ethereum promised but did not deliver. EOS has done both. EOS Dawn 3.0 is available.
what has eth not delivered on?
scaling. becoming the world computer. spitting out DAC after DAC after DAC. this was the promise.
But they do have minimum viable Plasma commit on github and tons of other things. They already are doing more tx per day than bitcoin and have been for awhile, and their tx is cheaper.
Look into Sharding, Plasma, Casper, POS, and you will see most of it is happening this year. The devs for all of these projects either have it figured out and are almost done or have already releasd test versions.
As far as I am aware, EOS is still in testnet, so they didn't deliver yet. Supposedly coming out in June this year, then they have years of catch up to play with Ethereum. There really isn't anyone designing/coding anything for EOS in terms of projects.
Ethereum already has 0x, DigixDao, MakerDao, ethLend, Various Gaming Tokens, ERC20, Erc 720, ERC721,Polymath, OmiseGO, Icon, Aeternity, Golem, BAT, Salt, Storj and so many others.
Once Plasma/Sharding/POS and a few more things are implemented all of those above projects are going to take off becuase they all have real world use.
To see all of the tokens and a short description see here https://etherscan.io/tokens
The only thing bitcoin delivered on was sending money P2P, there really isn't much more it can do. Since it doesn't have any new stuff coming out like anything Ethereum has, you shouldn't expect bitcoin to be worth much. Bitcoin only ever had value to start with because it was first and had that advantage of being first. Many other projects are better.
EOS doesn't have any projects on it, they haven't delievered. I do expect them to deliver and do well though in the future.
EOS is available for developers. It is called EOS Dawn 3.0. It is available now. Check out the activity on Github for a true representation of interest! See the projects on EOS listed at https://eosindex.io/
I was an ETH fan once myself. Don't hesitate to move your loyalty to another platform that offers more flexibility. This is the fair market at work. ETH made the history books. But it's now stuck working on fixes for itself. I don't really consider the two technologies comparable. EOS really is THAT much better. Maybe ETH finds a business sector that needs a single threaded blockchain that runs on fuel. Just like you can still buy an Atari if you wish! Just sayin'! Love your posting amigo, keep'm coming!!!
EOS looks like they have some projects people are working on right now, but when I say they don't have projects on it I mean they don't have finished products.
DigixDao and MakerDao and Golem took years and are now done.
Plasma is capable of having chains within chains within chains within chains within chains and you can just keep going. Plasma is an additional layer that eventually can settle with an ETH transaction. All of the processing stuff and TX heavy interactions are going to happen off chain with Plasma, that isn't going to be an issue for throughput.
Minimum viable plasma is already on github.
I do hold some EOS tokens by the way :)
thanks for your sharing and comparison...let us wait and see
Coins mentioned in post:
It's difficult to believe that Ethereum is the future. This will be almost impossible seeing that Bitcoin detects the trend of the market. Bitcoin's popularity is another factor, I'm sure every Crypto hodler started with bitcoin before learning about Alts. Only those that understand Cryptocurrency very can choose Eth over Btc based on your explanations above. Thank you for your explanations tho.
This may be true for hodlers who have been in this for some time, but not so true for those of us still new to this. I have been in crytpo for a few months now, and never once bought Bitcoin. Why would I? It is to expensive and slow to transact with. It also has limited function, as this article points out and is glaringly obvious to those of us who did not form opinions of it before the explosion in blockchains. I understand for those who have been in this awhile, Bitcoin will always be the king. But I don't see that being the case for those of us entering now. Many flaws have been recognized, as well as new ideas for usage that is the driving force for better block chains.
This has a lot to do with perception. For example, the OP believes Ethereum is the future. Others believe ADA or EOS will replace ETH. Quite possible if the latter are correct, something else will come along and replace those too. It will be interesting to watch as regulations are put into place and institution money floods in how much this will change the landscape. Will the projects be influenced by the demands of the big money? Probably to some degree, perhaps to a large degree. It has to move this direction. The purpose of blockchain is for practical use, not abstract speculations of value. Those who use it for practical purposes will be the ones deciding the relevancy. The more uses, the more relevant.
EOS is a very good candidate for success. Dan Larimer who made Steem and Bitshares is the one who is making EOS. You can expect great things from EOS, but it is not releasd yet so it is still years behind ETH in terms of having thousands of developers/coders working on apps/Dapps(decentralized apps) and other functional things.
I am sure EOS will be really good though and it is why I Have some as well :)
Bitcoin's value comes from it's fundamentals, of which were established years ago. It has no future fundamentals.