Ethereum is often referred to as the second most popular cryptocurrency, after Bitcoin. But not like Bitcoin — — and most major currency money virtual others — — Ethereum is meant to be more than just a means of exchange or a store of value. Instead, Ethereum calls itself the network computing decentralized which is built on top of technology blockchain
Let us discuss more detail about the cryptocurrency Ethereum and cryptocurrency to others.
1. History of Ethereum
Quoting The Street, Ethereum is the work of a 19-year-old teenager. Name teenagers it is Vitalik Buterin. Initially, male descendants of Canada-Russia are interested in the system blockchain.
According to him, this system can create a democratic environment everywhere. Starting from businesses, organizations, until the eyes of money, there is no one party that ever really controls everything. Buterin ultimately catapults the idea is to the organization Thiel Fellowship. He ended up getting a fund of 100,000 US dollars to build Ethereum.
In the development process, Ethereum was also assisted through crowdfunding funds. This crowdfunding process was assisted by other developers such as Dr. Gavin Wood and Joseph Lubin. Ethereum also managed to get funds of 18 million US dollars.
Finally, in the year 2015, the system that one is born. It continues to grow until it is as big as it is now.
2. How Does Ethereum Work?
Like all cryptocurrencies, Ethereum works on the basis of a blockchain network. Blockchain is a kind of book great that decentralized and distributed where every transaction is verified and recorded and can be accessed publicly. — Distributed in the sense that every person who participates in the network Ethereum has a copy identical from book great this, let them see all the transactions previously. — Decentralized in case the network is not operated or administered by entities centered anywhere — — as instead, managed by all holders of the book great.
Blockchain transactions use cryptography to maintain network security and verify transactions. People use computers to “ mine,” or solve complex mathematical equations that confirm every transaction on the network and add new blocks to the blockchain that is at the heart of the system.
The ‘miners’ are then rewarded with crytocurrency tokens after successfully carrying out their functions
For the Ethereum system, this token is called Ether (ETH). Ether can be used to buy and sell goods and services, such as Bitcoin.
Cryptocurrency one is also exposed to the increase in the price of the fast for several years past, makin investment speculative de facto
But what is unique about Ethereum is users can build applications that “ run “ in blockchain like device software “ runs “ on the computer .this application is able to store and transfer the data private or handle the transaction finances are complex.
“Ethereum is different from Bitcoin in that the network can perform computing as part of the mining process,” said Ken Fromm, director of education and development at the Enterprise Ethereum Alliance.
“ The ability to compute the base is changing the storage value and media exchanges into a machine computing globally decentralized and storage of data that can be verified in the open .”
3. Ether and Ethereum: What’s the Difference?
You can use Ether as a digital currency in financial transactions, as an investment, or as a store of value. Ethereum is a blockchain network where Ether is stored and exchanged.
However, as mentioned in the above, the network is offering a variety of functions other than ETH. “ Ethereum airport transaction finance that simple, but it may also deal complexes that do what only start from the swap of assets to take out a loan and acquire works of art digital,” said Boaz Avital, head of product in Anchorage.
Transactions are processed and stored on the Ethereum network.
The Ethereum network can also be used to store data and run decentralized applications
Rather than host device software on servers that are owned and operated by Google or Amazon, where one company controls the data, people can host applications in blockchain Ethereum.
This gives users control over their data and they have control of the full-on applications that they put in the network Ethereum because it does not exist the authority of the center that manages everything.
Perhaps one of the cases of the use of the most interesting that involve Ether and Ethereum are contracts that run themselves, or the so-called contract clever.
As the contract more, the two parties make an agreement about the delivery of goods or services in the future. Not like contracts conventional, lawyers are not required: The party making the code contract on blockchain Ethereum, and after the requirements of the contract are met, he will execute his own and send Ether to parties that appropriate.
4. Ethereum vs Bitcoin
Bitcoin’s main use is as a virtual currency and a store of value.
The Ethereum network can also be used to store data and run decentralized applications
Rather than host device software on servers that are owned and operated by Google or Amazon, where one company controls the data, people can host applications in blockchain Ethereum.
This gives users control over their data and they have control of the full-on applications that they put in the network Ethereum because it does not exist the authority of the center that manages everything.
Perhaps one of the cases of the use of the most interesting that involve Ether and Ethereum are contracts that run themselves, or the so-called contract clever. As the contract more , the two parties make an agreement about the delivery of goods or services in the future .
Not like contracts conventional , lawyers are not required : The party making the code contract on blockchain Ethereum , and after the requirements of the contract are met , he will execute his own and send Ether to parties that appropriate.
Ethereum vs Bitcoin
Bitcoin’s main use is as a virtual currency and a store of value.
Ether also serves as the eyes of money virtual and store of value, but the network Ethereum that decentralized allows to create and run an application, contract clever, and transaction others in the network.
Bitcoin does not offer the functions of these because they are only used as a currency of money and store of value.
Besides that, Ethereum also process transactions with more quickly.
“A new block is validated on the Bitcoin network once every 10 minutes while a new block is validated on the Ethereum network once every 12 seconds,” said Gary DeWaal, chairman of Katten’s Financial Markets and Regulation Group. And development period ahead may be speeding up transactions Ethereum, he noted.
Lastly, there is no limit to the number of potential Ether tokens while Bitcoin will release no more than 21 million coins.
Author: Jonathan Liiu Yaoshan | Source: Medium
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