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Even those who are not familiar with blockchain you might have heard of Bitcoin, the cryptocurrency and the payment system that uses the technology. Another platform called Ethereum, which also uses blockchain, is expected by some experts to & nbsp;surpasses Bitcoin quest & # 39; year.
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What is Ethereum?
Ethereum is an open source public service that uses blockchain technology to facilitate smart contracts and cryptocurrency trading securely without a third party. Two accounts are available via Ethereum: external proprietary accounts (controlled by private keys affected by human users) and contractual accounts. Ethereum allows developers to distribute all kinds of decentralized apps. Although Bitcoin remains the most popular cryptocurrency, it is the aggressive growth of Ethereum which has many speculative that will soon outweigh Bitcoin in use.
How is Ethereum different from Bitcoin?
While there are many similarities between Ethereum and Bitcoin, there are also significant differences. Here & nbsp;they are some:
- Bitcoin trades in cryptocurrency, while Ethereum offers several methods of exchange, including cryptocurrency (Ethereum & # 39; s is called Ether), smart contracts and the Ethereum Virtual Machine (EVM).
- They are based on different security protocols: Ethereum uses a "game test" system as opposed to the "job test" system used by Bitcoin.
- Bitcoin allows you to perform only public transactions (proof of authorization or censure proof); Ethereum allows both authorized and unauthorized transactions.
- The average blocking time for Ethereum is significantly lower than for Bitcoin: 12 seconds versus 10 minutes. This results in further confirmations of blocks, which allow the Minereum miners to complete more blocks and receive more Ethers.
- It is estimated that by 2021 only half of Ether's coins will be mined (a supply of over 90 million tokens), but most Bitcoins have already been extracted (its supply is limited to 21 million).
- For Bitcoin, computers (called miners) that manage the platform and verify transactions receive rewards. Basically, the first computer that solves every new block gets Bitcoin (or a fraction of one) as a reward. Ethereum does not offer block premiums and instead allows miners to take a transaction fee.
What are the benefits of Ethereum?
Ethereum advocates believe that its main advantage over Bitcoin is that it allows individuals and companies to do much more than transferring money between entities that carry & nbsp;Bloomberg to write it is "the hottest platform in the world of cryptocurrencies and blockchain" and companies like JPMorgan Chase, Intel and Microsoft invest in it.
History of Ethereum
Co-founder of Ethereum, & nbsp;Vitalik Buterin said, "I thought [those in the Bitcoin community] they were not approaching the problem in the right way. I thought they were going after the individual applications; they were trying to explicitly support each of them [use case] in a kind of protocol for a Swiss army knife. "
He imagined a different way.
Buterin was introduced and intrigued by blockchain technology when he was involved in Bitcoin as a 17-year-old programmer in 2011 and co-founded & nbsp;Bitcoin Magazine. He began to imagine a platform that went beyond the financial use cases allowed by Bitcoin and in 2013 published a white paper that describes what would eventually become Ethereum using a general scripting language.
The main element of Bitcoin differentiation was the ability of the platform to exchange more than just a cryptocurrency.
In 2014, Buterin and the other co-founders of Ethereum launched a crowdsourcing campaign in which they sold Ether participants (Ethereum tokens) to take off their vision and raise & nbsp;more than $ 18 million. The first live version of Ethereum, known as Frontier, was launched in 2015. Since then, the platform has grown rapidly and today there are hundreds of developers involved.
Ultimately, Buterin hopes that & nbsp;Ethereum will be the solution for all the cases of use of blockchains that do not have a specialized system to turn to.
Ethereum is still experiencing growing pains and suffers from some of the same problems that Bitcoin does primarily in its scalability. In 2016, $ 50 million in Ether was stolen by an anonymous hacker who raised questions about platform security. This caused a division within the Ethereum community and was broken into two blockchains: Ethereum (ETH) and Ethereum Classic (ETC).
There have been dramatic fluctuations in Ether's price, but Ethereum's currency has grown more than & nbsp;13,000 percent in 2017. This extraordinary growth is interesting for many investors, but volatility makes other investors cautious.
It is still a very young platform, but its potential and its applications could be unlimited. The Ethereum infrastructure has been improved in recent years when it has been questioned with security concerns and since it is less monopolistic than Bitcoin, it is more open to reform measures that could eventually make it a better solution than Bitcoin.
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Even those who are not familiar with the blockchain are likely to have heard of Bitcoin, the cryptocurrency and the payment system that uses the technology. Another platform called Ethereum, which also uses blockchain, is expected by some experts to overcome Bitcoin this year.
What is Ethereum?
Ethereum is an open source public service that uses blockchain technology to facilitate smart contracts and cryptocurrency trading securely without a third party. Two accounts are available via Ethereum: external proprietary accounts (controlled by private keys affected by human users) and contractual accounts. Ethereum allows developers to distribute all kinds of decentralized apps. Although Bitcoin remains the most popular cryptocurrency, it is the aggressive growth of Ethereum which has many speculative that will soon outweigh Bitcoin in use.
How is Ethereum different from Bitcoin?
While there are many similarities between Ethereum and Bitcoin, there are also significant differences. Here are some:
- Bitcoin trades in cryptocurrency, while Ethereum offers several methods of exchange, including cryptocurrency (Ethereum & # 39; s is called Ether), smart contracts and the Ethereum Virtual Machine (EVM).
- They are based on different security protocols: Ethereum uses a "pole test" system in contrast to the "test work" system used by Bitcoin.
- Bitcoin allows you to perform only public transactions (proof of authorization or censure proof); Ethereum allows both authorized and unauthorized transactions.
- The average blocking time for Ethereum is significantly lower than for Bitcoin: 12 seconds versus 10 minutes. This results in further confirmations of blocks, which allow the Minereum miners to complete more blocks and receive more Ethers.
- It is estimated that by 2021 only half of Ether's coins will be mined (a supply of over 90 million tokens), but most Bitcoins have already been extracted (its supply is limited to 21 million).
- For Bitcoin, computers (called miners) that manage the platform and verify transactions receive rewards. Basically, the first computer that solves every new block gets Bitcoin (or a fraction of one) as a reward. Ethereum does not offer block premiums and instead allows miners to take a transaction fee.
What are the benefits of Ethereum?
Ethereum supporters believe that its main advantage over Bitcoin is that it allows individuals and companies to do much more than transferring money between entities that bring Bloomberg to write "the hottest platform in the world of cryptocurrencies and blockchains" and companies like JPMorgan Chase, Intel and Microsoft invest in it.
History of Ethereum
The co-founder of Ethereum, Vitalik Buterin, said: "I thought [those in the Bitcoin community] they were not approaching the problem in the right way. I thought they were going after the individual applications; they were trying to explicitly support each of them [use case] in a kind of protocol for a Swiss army knife. "
He imagined a different way.
Buterin was introduced and intrigued by blockchain technology when he was involved in Bitcoin as a 17-year-old programmer in 2011 and a co-founder of Bitcoin Magazine. He began to imagine a platform that went beyond the financial use cases allowed by Bitcoin and in 2013 published a white paper that describes what would eventually become Ethereum using a general scripting language.
The main element of Bitcoin differentiation was the ability of the platform to exchange more than just a cryptocurrency.
In 2014, Buterin and the other co-founders of Ethereum launched a crowdsourcing campaign where they sold Ether participants (Ethereum tokens) to take off their vision and raised more than $ 18 million. The first live version of Ethereum, known as Frontier, was launched in 2015. Since then, the platform has grown rapidly and today there are hundreds of developers involved.
Ultimately, Buterin hopes that Ethereum is the solution for all blockchain use cases that do not have a specialized system to turn to.
Ethereum is still experiencing growing pains and suffers from some of the same problems that Bitcoin does primarily in its scalability. In 2016, $ 50 million in Ether was stolen by an anonymous hacker who raised questions about platform security. This caused a division within the Ethereum community and was broken into two blockchains: Ethereum (ETH) and Ethereum Classic (ETC).
There have been dramatic fluctuations in Ether's price, but Ethereum's currency has risen by more than 13,000 percentage points in 2017. This extraordinary growth is interesting for many investors, but volatility makes other investors cautious.
It is still a very young platform, but its potential and its applications could be unlimited. The Ethereum infrastructure has been improved in recent years when it has been questioned with security concerns and since it is less monopolistic than Bitcoin, it is more open to reform measures that could eventually make it a better solution than Bitcoin.
