Ethereum is the largest and most well-established, open-ended decentralized software platform. Ether is the second-largest cryptocurrency by market capitalization after Bitcoin and is the most actively used blockchain. Now, you may be thinking, what does all this gibberish mean?
You probably already know that Bitcoin is a form of decentralized money that any intermediary does not control. There is no single point of failure, so the system is virtually impossible to shut down, manipulate or control.
Blockchain is the byproduct of Bitcoin’s invention. It fuses cryptography, decentralized networks, and proof of work to create a system that reaches decisions without a central authority. Professionals use blockchain technology to create applications that go beyond just enabling a digital currency.
Ever since the Bitcoin market was established, people have used and developed blockchain technology to build decentralized applications and programs.
However, creating a similar system to Bitcoin requires a large network of computers to run it. To make such a complex system, you will need a different programming language and a separate computer network. If that seems like a lot of work, you’re right. So, Ethereum is here to help.
Ethereum was brought to life in 2014 by Vitalik Buterin, who was the co-founder of Bitcoin magazine at the time. Ethereum is the DIY platform for decentralized programs, also known as Dapps.
If you want to create a Dapps that no one out there can understand how to control (not even you), learning Ethereum’s coding language, Solidity, is the answer.
The key difference between Bitcoin and Ethereum is Ethereum is a platform, not a currency. Ethereum is the infrastructure for Dapps that is run by networks worldwide. The currency used to incentivize the network is called Ether.
Ethereum comprises a series of cryptographic public records linked together following the same structure used for Bitcoin transactions. These records can include debt information to property deeds, and they are all publicly accessible. If you were to make any changes, they could be seen by every Ethereum user, as long as they know the correct details to find them.
Here’s what to take away:
Smart contracts deal with all aspects of an Ethereum program, including enforcement, management, performance, and payment. Ethereum developers write them, and the Ethereum network executes them. However, smart contacts do not take into account other factors such as extenuating circumstances that perhaps a human contractor would consider. A smart contract is efficient but uncompromisingly strict.
Ether is a cryptocurrency similar to Bitcoin. At first, it was created to reward outside users who dedicated their processing power to maintaining and expanding the Ethereum blockchain. Each block added to the virtual ledger is rewarded with 3 Ether. With time it has become more challenging to achieve these rewards.
While Ethereum is often considered more robust than the Bitcoin blockchain, this system still comes with some issues. The slow speed of its technology is a significant part of this. At peak times, it can be difficult to use Ethereum quickly.
Due to the size and scope of the Ethereum blockchain, you can only perform a few transactions each second. This situation has led to severe bottlenecks for users.
On top of that, many banks and other financial organizations have criticized Ethereum, suggesting a lack of consumer trust means that it isn’t sustainable.
Due to the lack of centralized regulation, it is difficult for large companies and countries to adopt the system on a large scale, leaving users victim to fraud.
Despite this, Ethereum is a promising development in the world of blockchain and cryptocurrency technology. If the system is updated significantly in years to come, it may or may not stand up to future additions to this industry.
Once Bitcoin demonstrated the concept of digital decentralization, plenty of new opportunities became available. As most of the web is controlled by centralized authorities and third parties such as Facebook and Amazon, it is convenient to knock out the ‘middleman’ using blockchain technology.
Ethereum connects people directly through a powerful decentralized supercomputer by cutting out the middleman, making any transaction entirely transparent.
Everywhere you look, the predicted market value of blockchain is huge, and its impact on various industries is called disruptive. Simultaneously, everyone is searching for the true value and the best use cases.
As more people come to understand blockchain, the value development will speed up. For example, an engineer may develop a code, an entrepreneur revising his company strategy, or even a professional wanting to contribute to blockchain projects.
Training helps you understand the system and how you can use it to your advantage. For example, Unblocktalent can help you understand blockchain and contribute to a more sustainable, decentralized world. You will become a blockchain professional who will participate in and add value to blockchain projects with ease with support from their on-demand, current, and high-quality module-based learning.
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