Ethereum (ETH) and IOTA (MIOTA) make for strange bedfellows. For one, Ethereum is a blockchain-based platform for decentralized applications, ICO tokens, and Smart Contracts. On the other hand, IOTA uses a completely different form of Distributed Ledger Technology- the Tangle. So, a comparison between the two would have to draw material from either a TA point of view or how the two have performed so far in 2018. Either way, it’s not difficult to find an entry point that allows for a minuscule discussion of the two.
The blockchain vs. Tangle: which is better?
When we talk of Ethereum vs. IOTA, memories of last November’s war of words between the two platforms come to mind. Both IOTA and Ethereum launched after holding two of the most successful ICOs ever. But their different approaches to the possibilities provided by innovative ledger technology meant there was always going to be some sort of mudslinging between them.
Ethereum’s strength comes from the fact that it has proven time and again that its platform is the best for hosting smart contracts and dApps. Nevertheless, IOTA too has been running a testnet for the adoption of dApps. However, it’s in the IoT usability that it wants to dominate. So, we expect the Ethereum Virtual Machine to continue being the best platform for building decentralized applications and hosting of smart contracts.
Even though Ethereum will define the blockchain space with its EVM, the Tangle is going to have an edge over the EVM in many ways. First of all, unlike Ethereum and other blockchain-based cryptocurrencies that face problems of scalability and huge transaction fees, IOTA’s network is faster; scales better, and allow for free transactions. The same can’t be said of Ethereum at the moment. Even with Casper proof of stake implementation, it won’t be able to reach similar scalability as IOTA.
ETH or MIOTA: What lies ahead?
It’s very difficult to say exactly where a blockchain project will be in 4, 5 years’ time. This is due to the fact that cryptocurrency is still in infancy and a lot can change within a year. Nevertheless, this is what we think of Ethereum and IOTA a few years down the road.
Vitalik Buterin’s platform is immersed in the development of programs and implementations that will accelerate global adoption. The main focus is to make the EVM as accessible as possible to developers. We foresee the ERC-20 token standard continue to dictate app development.
But perhaps the biggest score for Ethereum (ETH) will come in the form of mega private partnerships. On this front, the Ethereum Enterprise Alliance (EEA) will play a big role in maintaining investor confidence. Netting companies like J.P. Morgan, Microsoft, Samsung, and MasterCard means the EVM will continue to play a major role in cryptocurrency.
While speaking to Bloomberg, the Ethereum co-founder, Joseph Lubin, summed it up quite realistically when he responded to a question on whether the current price correction meant the Bitcoin bubble was on hand.
He said: “It may be hard to tell (about the price dip)because we’re so focused on ethereum, we’re so focused on building decentralized applications on the ethereum platform and we’re so much less focused on cryptocurrencies like bitcoin.”
IOTA (MIOTA), on the other hand, should continue to focus on making the Internet of Things and M2M transactions a reality. If it works, the MIOTA token will be one of the best to hold. Currently, partnerships akin to what EEA has have been signed by the IOTA Foundation. And in terms of where they want to be, it goes without saying that the founders want it on top of the ladder. This response provides a better opinion of what the team thinks of their project.
David Sonstebo had this to say: “we do not want the IOTA project to be focused around just large partnerships and announcements, at the end of the day open source projects live and day by how fertile its grassroots are. We will be focusing a lot of resources on making IOTA as developer friendly as possible.”
ETH vs. MIOTA: For the investor
Ethereum (ETH) is the second biggest cryptocurrency according to market capitalization. ETH has shed quite a huge percentage of its value in Q1 to leave Ethereum’s market cap at approximately $54 billion. IOTA, on the other hand, is ranked 10th with a market cap of just above $3.5 billion. The value of ETH has dropped to trade at $532 against the USD. The expectation is that it will rally to a high of $1000 by Q3 of 2018. IOTA (MIOTA), on the other hand, trades at a modest $1.23 against the USD. Price predictions see it gaining by over 200% by Q3 of 2018. It could hit $5 if the expected cryptocurrency rally picks by Mid-May. As an investment, Ethereum presents an attractive proposition. However, you should bet against MIOTA just yet.