What is Ethereum (ETH)?
Ethereum is actually very similar to Bitcoin. Ethereum could be a public peer-to-peer network or blockchain with its own digital currency referred to as Ether. Ethereum was created by Vitalik Buterin in 2014 and the purpose of Ethereum is to become a platform where smart contracts can be created and implemented.
Simply put, the purpose of Ethereum is to become a world computer.
Bitcoin is meant to stay a listing of balances and transactions on the blockchain, while the Ethereum blockchain is designed to store various types of data. This data can be accessed and used by computer programs running on the blockchain Ethereum. These programs are called decentralized applications, or dapps.
History of Ethereum
Ethereum was first called in 2013 in a whitepaper by Vitalik Buterin, a developer who was working on Bitcoin at the time.
Buterin believes that Bitcoin must be made more easily "adjusted". He believes that Bitcoin must be used further than just as a store of wealth and the smart contract feature can be used to automatically determine when payments are made, for example. This project is not intended for Bitcoin, therefore Buterin created Ethereum in 2014 for this purpose.
Ethereum was the forerunner of what was known as an initial coin offering (ICO), sold to initial investors around 60 million Ether tokens when the project was still under development. It is a great journey to develop and continue to promote the Ethereum ecosystem while paying costs for the realm of legality and development.
Since then, Ethereum has grown rapidly. Several other projects have been launched, and the development of the Ethereum platform has begun, with varying degrees of success.
Difference between Ethereum and Bitcoin
Ethereum and Bitcoin share many similarities. In this article, we are going to try and highlight the foremost basic variations between the 2.
The biggest difference is the main goal of this project.
Bitcoin aims to become a medium for storing wealth, digital gold, and eventually becomes a globally adopted currency that can repair or replace conventional money to a certain extent. The purpose of Ethereum is to be a platform that can be used by smart contracts and decentralized applications.
Another important difference is the amount. The number of Bitcoin is limited to 21 million, but the number of Ethereum is not limited to a certain amount. Bitcoin and Ethereum square measure created during a method referred to as mining.
There are plans to shift Ethereum's production to a proof of stake model, which should be more environmentally friendly than mining / mining.
There are some technical differences in technology that supports the Bitcoin and Ethereum platforms, but in the initial stages of this project, both of them are more or less the same. Because these projects will grow further, later the differences may become far more real and can affect the direction of their respective goals.
What are Smart Contracts?
The purpose of Ethereum is to become a platform where the smart contract can run. Let us explain with a simple example what you might be able to do with Ethereum in the future.
The purpose of Ethereum is to make your daily life more efficient and cost-effective by automating the processes that you live every day and removing intermediaries from the system weuse; together with legal systems, money systems, pc systems or a lot of.
For example, suppose A has several documents stored on the Blockchain Ethereum: his identity document, his will, and his house deed. The assumption is that on day A died, the death certificate was also uploaded to the blockchain.
The process that must be done to move property A requires a lot of admin work because there are several parties involved; like them from the realm of law, tax and property.
However, because all of these documents are stored on the blockchain Ethereum, something interesting and different happens. After the B death certificate is officially issued and uploaded to the blockchain, the last B will and will will be processed.
Assuming A inherit his house to his closest family, home ownership can be transferred to his closest family automatically by the Ethereum network. Therefore, A's closest family will inherit house A exactly as A wants, without having to contact a legal professional.
This might sound amazing and scary, but A has saved a lot of time and resources because it doesn't have to wait for the immediate family A, legal professionals and property registration officers to relate to each other to prepare and carry out this transaction.
Many interesting projects are being built right now, but there are many things that need to be considered for large-scale adoption of Ethereum, so we can all see how Ethereum will develop in the future.
