If you are wondering what Ethereum is, then you must be living under a rock. Yes, I admit it is one of the lesser-known Cryptocurrency. But it is a Cryptocurrency nonetheless. Bitcoins form the lion’s share of Cryptocurrencies with a staggering 68% and tend to take away all the spotlight.
Ethereum is a very proud altcoin, and people ought to know more about it. Since you have clicked on the link to one of my articles on Ethereum, chances are you are fed up with Bitcoins and want to learn about Ethereum.
If that is the case, you have come to the right place, as through this article, I will be telling you all the important details about Ethereum. From its origin to its uses. I trade in ethereum myself, and I have been doing it for the last four years.
Honestly, I find ethereum to be way more lucrative than Bitcoins. Keep reading to know why, but before we proceed, let us take a look at what an Ethereum is exactly.
Ethereum Explained
Apart from being a cryptocurrency, Etherem also serves as a decentralized platform that allows developers to develop decentralized apps. Etheruem was launched way back in 2015 by a Canadian-Russian programmer called Vitalik Buterin.
This goes without saying that Ethereum, of course, works on the renowned blockchain technology, and it too is decentralized. The token that Ethereum gives is called Ether. Ether is the second most popular Cryptocurrency in the world, with a market capital value of $175,084,966,645. It forms around 11% of the total Cryptocurrencies in the world.
Uses Of Ethereum
Ethereum is basically used for two purposes; the first purpose is that it serves as a Cryptocurrency, and secondly, it serves as a decentralized platform on which decentralized apps are developed by developers.
One of the biggest advantages of using ethereum is that it is able to decentralize, codify, trade, and secure almost everything on the face of the Earth. Ethereum is heavily backed by large business organizations clearly because of the many advantages it has.
One of the most popular projects revolving around Ethereum is the partnership of Microsoft with ConsenSys, which lets users have access to Microsoft’s ethereum based blockchain service.
In 2016, Etherum was divided into two separate blockchains. The name of the first one is ethereum and the second blockchain is Ethereum Classic.
Bitcoin VS Ethereum
I am sure that this segment is bound to grab your attention. Over here, we are going to talk about the major differences between Bitcoin and Ethereum. In this part, we are specifically focusing on Ether, the token of Ethereum.
Use
Like I already mentioned before, Bitcoin is the world’s most popular Cryptocurrency, whereas Ether is the second most popular Cryptocurrency. Cryptocurrency is synonymous with Bitcoin since Bitcoin changed the way we look at our finances and is the foundation of Cryptocurrencies.
Ethereum, on the other hand, is a decentralized platform. Bitcoin was solely invented for the purpose of using it as a Cryptocurrency; on the other hand, ethereum was invented for use as a decentralized platform, and only much later was Ether released.
Founder And Year Of Release
Bitcoin was released on 3 January 2009 by a person called Satoshi Nakamoto, whereas Ethereum was founded by a Canadian Russian programmer called Vitalik Buterin in 2015.
Market Capital Value And Mining Cap
The difference in the mining Capital values of Ethereum and Bitcoin is huge. Bitcoin is the world’s most popular Cryptocurrency, has a market capital value of a staggering $891,212,542,816 while the market capital value of Ethereum is $175,199,074,386.
The mining cap for Bitcoin has been set to 21 million, which essentially means there will only be 21 million ever. But there is no such limit when it comes to Ether, it is just that 18 million Ether can be mined each year.
These were some of the major differences between Etheruem and Bitcoin.
Frequently Asked Question On Ethereum
These are some of the questions that people frequently ask about Ethereum. Keep reading to have a clearer knowledge of Ethereum.
What Does The Term ‘Ethereum Enterprise Alliance’ Mean?
Do not get intimidated to read a big term like this; it is not that complicated. It basically means a group of startups that are experts in working with Ethereum technology. The main motive of this alliance is to promote and support Ethereum based Blockchain technology.
What Are Decentralised Applications?
Decentralized Applications are applications that are decentralized. These apps are stored on cloud computing platforms. Decentralized Applications are also known as D Apps. The main purpose of these applications is to allow users and programmers to share ideas and collaborate with each other.
What Does The Term ‘Hard Fork’ Mean?
The term ‘hard fork’ is associated with Blockchain technology, and it means making a diverse change in the protocols of the network. In simple words, a hard fork is when the nodes of the blockchain do not allow the nodes of the older versions.
Why Is Ethereum Becoming So Popular?
There are several reasons why Ether is popular; even though the value of Bitcoin is higher, very few people are aware of the fact that it is the most transacted Cryptocurrency. The volatility of Bitcoin is the only thing that stops Bitcoins from being an alternative to fiat currencies.
The prices of Bitcoins keep swinging every second and are very risky; that is why Ethereum turns out to be of greater value when it comes to being a substitute and alternative to fiat currencies. This is the main reason why major industries are backing Ethereum and showing their willingness to use it in the foreseeable future.
Final Thoughts On Ethereum
There you go; I hope now you know the basics of Ethereum. What I personally like about Ethereum is that it is not just a Cryptocurrency but also a platform on which you can develop apps.
We can safely assume that Cryptocurrencies are going to replace fiat currencies in the future, and without question, ethereum is going to play a huge part in it.
