You are here: Home » Economy & Policy » News
Business Standard

Ethereum, the 'new kid' in digital currency, is beating the bitcoin

Reports of introducing trading services in alternate currency is making rounds in India

Rajesh Bhayani  |  Mumbai 

etherum, bitcoin
Photo courtesy: Ethereum website)

Alternate is competing with after posting a sharp jump at $233, from $8.24 in January. The new currency picked up along with bitcoin, which crossed the $2,700 level last week. 

fell from an all-time-high to $1,800 in two days before settling at $2,400 on Thursday. Meanwhile, signalled higher strength than by posting a sharp recovery from $100. 

At present, is the largest despite its market cap falling below 50 per cent this year.

Indian exchanges have not been offering trading services in alternate currencies but reports of a launch is making rounds. Sandeep Goenka, co-founder of Zebpay, India’s largest exchange said: “We are planning to launch altcoins like for trading on our platform in August.”

Total market cap of all digital currencies is now at $86 billion, out of which bitcoin's share has fallen to 45 per cent and has witnessed a sharp increase in market share at $20 billion.

has been backed by major firms including JPMorgan, and The new currency has been designed to support smart contract applications, which is a computer program that can automatically execute the terms of a contract when certain conditions are met. Barclays, for example, has used similar technology to trade derivatives.

For instance, a contract can be designed among individuals wanting to bet on cricket if the certain conditions are met. In the corporate sector, a company has signed a contract, fee will be paid using after the completion of contract terms.

While has been getting support from governments and investors, the blockchain has been backed by corporates wishing to use the technology for smart contract applications.

A group called the Enterprise Alliance (EEA) was recently founded to connect large companies to technology vendors in order to work on projects using the blockchain.

EEA on Tuesday announced the joining of another 86 firms in the alliance, which in turn helps the cryptocurrency gain legitimacy.