Bitcoin May Finally Trump Ethereum as Native Currency of the Internet
Ethereum is essentially synonymous with DeFi applications and smart contracts as it powers many cryptocurrencies while Bitcoin, as a potential store of value and payment network but one without the capability of processing many automated contracts comparatively.
The #Taproot upgrade on Bitcoin, the latest version that went live recently, introduces a new digital signature entitled Schnorr. It will reduce the cost of Bitcoin transactions and help to become more private and efficient. However, most significantly, the upgrade will let Bitcoin users to execute smart contracts on the blockchain.
That essentially means Bitcoin will now be able to support more development of DeFi applications and NFTs while its network will be able to process more smart contracts, enabling its functionality and making it more competitive with Ethereum.
Already Bitcoin has the first-mover status and wide buy-in from large financial institutions, but with Taproot activated, it has perhaps neutralised Ethereum’s biggest strength and gives Bitcoin a lead that may be quite impossible to overtake.