Ethereum smart contracts are computer protocols that facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts enable the execution of transactions and agreements between parties without the need for a central authority, legal system, or external enforcement mechanism.

The term “smart contract” was first coined by Nick Szabo in 1996. Szabo’s idea was to create a protocol in which contract law could be enforced digitally.

He realized that the decentralized nature of the Internet could be used to create a system in which two parties could interact without the need for a third party to mediate or enforce the transaction.

While smart contracts have been around for some time, they gained popularity after the launch of Ethereum in 2015. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.

Ethereum smart contracts are written in code and stored on the blockchain. The code is executed by the Ethereum Virtual Machine (EVM), which is a decentralized platform that runs on thousands of nodes across the world.

The code of a smart contract is available publicly, and anyone can see it. This transparency is one of the main advantages of using smart contracts.

It allows anyone to audit the code and verify that it does what it is supposed to do.

Another advantage of smart contracts is that they are immutable: once they are deployed on the blockchain, they cannot be changed. This means that they are resistant to fraud and third-party interference.

A disadvantage of smart contracts is that they are often complex and difficult to understand. This can make it hard to debug errors in the code.

Additionally, because smart contracts are stored on the blockchain, they are permanent and cannot be changed or deleted. This can lead to problems if there is a mistake in the contract code.

Overall, Ethereum smart contracts offer a number of advantages over traditional contract law. They are transparent, immutable, and resistant to fraud and third-party interference.

However, they can be complex and difficult to understand.

When it comes to blockchain technology, there is no doubt that Bitcoin is the OG. The first and most well-known cryptocurrency has been around for over a decade now, and in that time has firmly established itself as the King of Crypto. However, there is a new challenger to Bitcoin’s throne in the form of Ethereum. Launched in 2015, Ethereum is a decentralized platform that runs smart contracts.

These contracts are programs that run exactly as they are programmed to, without any possibility of fraud or third party interference. This makes Ethereum an attractive option for businesses and developers who are looking for a blockchain platform that is reliable and secure.

So, is Ethereum outperforming Bitcoin? When it comes to market capitalization, the answer is a resounding yes. Ethereum’s market cap is currently sitting at around $20 billion, while Bitcoin’s is just shy of $10 billion. This is a pretty big difference, and it goes to show that investors are much more confident in Ethereum than they are in Bitcoin.

But market cap isn’t everything. Let’s take a look at some other ways in which Ethereum is outperforming Bitcoin.

One area where Ethereum has really taken off is in the world of Initial Coin Offerings (ICOs). An ICO is a fundraising method whereby businesses raise money by selling digital tokens. These tokens can be used to access the products or services that the business offers, or they can be traded on cryptocurrency exchanges.

Many businesses have raised millions of dollars through ICOs, and Ethereum has been the platform of choice for many of them. This is because ICOs built on Ethereum benefit from the security and reliability of the Ethereum blockchain.

Ethereum’s success in the world of ICOs has led to an influx of new users and businesses onto the platform. This has put pressure on Ethereum’s infrastructure, leading to some scalability issues. Scalability refers to a blockchain’s ability to handle increasing numbers of transactions as more users join the network.

Bitcoin also suffers from scalability issues, but its throughput is much lower than Ethereum’s, meaning that it can only handle around seven transactions per second compared to Ethereum’s 20+. This scalability issue is one of the main reasons why Bitcoin has been losing ground to Ethereum in recent months.

So, what does the future hold for these two blockchain heavyweights? Well, if current trends continue then it seems likely that Ethereum will continue to outperform Bitcoin. However, it’s worth noting that Bitcoin still has a lot going for it.

It’s widely accepted as a payment method, has a strong brand name, and boasts a large and loyal community. Only time will tell whether Ethereum can maintain its momentum or whether Bitcoin will make a comeback.