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This post originally appeared in slightly different form on The Finanser blog. As referenced in my recent post about the R3 consortium, there are various camps out there fighting for the cryptocurrency crown. The lead runners are bitcoin and Ethereum, and both have serious backing. I keep stressing that we need to remember we are experimenting here, and the endgame is still a ways away.
Equally, it could be none. This is not a win-lose equation, however, as there is a potential win-win zero-sum game where several currencies and blockchains survive and thrive, with interoperability for different use cases. After all, corporates might use Ethereum while the general public uses bitcoin. That makes it worth more than gold, and the bitcoinisters are all over the moon.
All of these factors, along with Brexit and the Trump presidency, are fueling people to invest. This then creates a virtuous circle of the more who invest, the more who invest.
This may all come tumbling down quickly, or it may move mainstream. What I do know is that we no longer talk about bitcoin as a Wild West, the dark net currency, ridiculous or stupid.
Ether is the currency of Ethereum, and this is proving popular with corporates. So why is Ethereum more popular than bitcoin for corporate users? Microsoft saw the potential of Ethereum for blockchain-as-a-service using their cloud Azure platform early on , and has been driving that project forward ever since to its enterprise account base as the platform of choice. Equally, Ethereum and ether differs from Bitcoin and bitcoins former is the infrastructure, latter is the currency , because it allows both permissioned and permissionless transactions to take place, whereas bitcoin only works in a permissionless way.
Ethereum is not proven, however, as demonstrated by the infamous DAO hack and hard fork last year. The two leading tribes are bitcoin and Ethereum, but there are plenty of others, as I outline above.
For banks this leads to choices: It is not even as simple as that, as there are plenty of other alliances out there. Partner Insights Sponsor Content From: Chris Skinner Chris Skinner is an author, expert and speaker on banking, finance and fintech. More from this Author Another way fintech will redefine banking: BankThink submission guidelines BankThink is American Banker's platform for informed opinion about the ideas, trends and events reshaping financial services.
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