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Bitcoin could be widely recognized as the king cryptocurrency, but there is a new guy on the block who is proving an irresistible prospect in the market.
Ethereum may have entered public consciousness only in 2015, but it is the decentralized capabilities of Blockchain that made overnight success a success that saw it traded at around $ 1,400 at the start of 2018 .
So how did Ethereum become a success story based on cryptography, and what makes it so popular? We thought about taking a moment to examine the rise and the rise of the cryptocurrency.
The origin story of Ethereum
Vitalik Buterin a programmer from Toronto, became interested in Bitcoin and his skills at the beginning of the decade before dreaming of his version of a cryptocurrency with a potential almost Unlimited [19659002] By 2013, Buterin's vision was refined in a white paper. His intention was to create an alternative platform for any type of application that developers wanted to create.
Ethereum was intended to overcome the kind of financial use cases made possible by Bitcoin, making it easy to create smart contracts and self-application code that developers can exploit for a wide range of applications.
The excitement surrounding the Buterin white paper was palpable, and a crowdfunding campaign was created in 2014 to get the project off the ground – where stakeholders were invited to buy Ethereum tokens, or Ether who was a part of the project.
The crowdfunder has continued to become the most successful campaign of its kind at the moment – raising over $ 18 million. A year later, the first live version of Ethereum, Frontier was launched, giving developers the ability to create their own decentralized apps.
The Ethereum value for blockchain
Just like Bitcoin, Ethereum contains a shared record of its transaction history in a secure Blockchain – and each node in the network stores a copy of this story.
The major advantage of Ethereum, however, is the use of "smart contracts". The beauty of smart contracts is that you can set up a transaction based on a number of different conditions that occur when they occur when they occur.
Because Blockchain promotes smart contracts, it offers developers the ability to create applications that never go offline and that can not be changed by third parties.
Once again, smart contracts give users much more freedom in their transactions, thanks to the ability to add criteria.
BitDegree.org notices the example of buying a house as the perfect way to illustrate the power of the intelligent contract. Traditionally, the act of buying a property depends on several third parties such as lawyers and brokers, but thanks to smart contracts, ownership of the home is confirmed as soon as a pre-established condition is met. So the transaction looks like something like "John transfers 200 ETHs", and once the payment is verified, John can legitimately claim ownership of the house.
Ethereum and blockchain current applications
There are already quite a few companies that already offer investors the ownership of real estate using the Blockchain platform in collaboration with Ethereum. Will Andrich, co-founder and CEO of Thaler.One stated that the ultimate goal of real estate through Ethereum is "transforming and democratizing real estate investments".
The potential of smart contracts is virtually unlimited and can be applied to expensive transactions by car dealers, real estate, and e-commerce – even freelance contracts can be stipulated that provide much better security for both parties.
Basically, Ethereum will always be compared to Bitcoins by observers and market commentators, but in reality both cryptocurrencies play very different roles.
Whereas Bitcoin is more liquid than Ethereum with a lower value-added supply of coins, the potential cases of use of Ethereum are much larger – with better applications and technology.
Ethereum vs Bitcoin
As Ethereum is six years younger than Bitcoin, its technology is more recent and capable of performing more complex tasks and, as such, Blockchain is able to work well with intelligent features of the Ethereum contract.
Another major advantage of Ethereum's superior technology is the pace of transactions with cryptocurrency. With payments processed in seconds rather than minutes, the task of managing money transfer is much easier than through its crypto-competitors.
It is important to state that despite the power of smart contracts and Ethereum's zero downtime applications, there is still room for occasional human error attacks. This is due to the fact that the code of smart contracts is written by humans, leaving them open to oversights and bugs that could create adverse circumstances.
Fortunately, due to the depth of the Blockchain network on which Ethereum operates, it is relatively easy to overwrite the broken code with the consent of the other users of the network, but it is worth reiterating that it is inadvisable to pay attention to the wind when dealing with a cryptocurrency no matter how safe and impenetrable it is.
Despite its billing by some as an alternative to Bitcoin, Ethereum represents much more than a decentralized cryptocurrency. With cutting-edge technology and watertight instantaneous transactions, it is apparently just a matter of time before the new baby on the block rises to the forefront of the digital market.
- My name is Dmytro and I'm CEO of Solvid and founder of Pridicto, a web analytics startup that uses AI and Machine Learning to predict web traffic, monitor vital metrics and set visual traffic targets . [19659028]
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