Bitcoin and Ethereum

When comparing different blockchains, billionaire Mark Cuba looks at some specific features before investing.

“Most people look at the speed and cost compared to BTC [Bitcoin] or ETH [Ethereum],” Cuban tells CNBC-Voice to make it. “While those things may be important, I see blockchain as a network with development platforms through smart contracts.

Cuba is referring to the capabilities of each blockchain beyond the speed and cost of cryptocurrency transactions. Each blockchain, which is a decentralized digital ledger that documents cryptocurrency transactions and other information, is unique.

For example, the Ethereum blockchain can execute smart contracts, which power decentralized applications such as DFI, or decentralized finance, and NPT, or non-qualified tokens. The Ethereum blockchain has its cryptocurrency ether, but can also serve as a platform for other digital coins.

He said earlier, these aspects of ethereum are appealing to Cuba. Due to his smart contracts, he compares this blockchain to the internet, as various platforms ranging from things like DFI to social media sites can be built on it.

Other experts agree with this. Kathy Lien of BK Asset Management recently told CNBC-Awaaz, “Atheorum [is] looking for ways to become a fully functioning infrastructure platform.” Atheorme itself can do many economic tasks, so it is Bitcoin. Goes beyond ”what is known as a peer-to-peer electronic cash system.

This is why, according to Cuba, “platforms that have the most active developers and build applications with significant usability for their users will have a network effect. In turn, the blockchain can generate” significant fees, “which the network. Can fund, making it investable.

To verify mint, or blockchain, a token like NXT – for example – and transactions on the blockchain, a user is usually charged by the blockchain’s miners. These fees can be especially expensive during times of high demand or congestion.

In Cuba’s opinion, “depending on how fees are distributed, [it] can create a real revenue stream that increases the value of tokens they mint,” he says.

For example, the athorum collects gas charges. Lian says, “It creates an income generating asset whose value should expand as its network expands.”

Although some people may think that blockchain is used only for cryptocurrency transactions, platforms can potentially be used for much more than that, as is the athorum. This is why Cuba looks at potential use cases for each blockchain before investing, rather than just the speed and cost of using them.

Cuba has invested in a number of blockchain companies this year, all of which are centered around smart contract capabilities. His portfolio includes NXT Platforms, DEFI Companies and Athorum Scaling Solutions.

By Alex Alena

Alex Alena has been the lead news writer at Cryptocurrency Updates. With a degree in communications, Matt has an uncanny ability to make the most complex subject matter easy to understand.