Ethereum digital currency, Ethereum is a decentralized platform that runs smart contracts, completely independent and absolutely not controlled by anyone. It has no central points of failure, as it is operated by thousands of volunteer computers around the world. Furthermore, users' personal information remains on their computers.
A smart contract is an agreement between two people in the form of code that runs across the blockchain, is stored on a public database, and cannot be changed. Transactions in the smart contract are processed by the contract chain, which means that they can be sent automatically without a third party.
Who Created Ethereum?
Publicly announced in January 2014, the core team consisted of Vitalik Buterin, Mihai Alesi, Anthony D'Iorio, Charles Hoskinson, Joe Lubin, and Gavin Wood.
In late 2013, Vitalik Buterin wrote down his idea for Ethereum and sent it to some of his friends who in turn sent it to other people. In the end, about 30 people reached out to Vitalik to discuss the concept.
Is Ethereum a digital currency?
Ethereum is a software platform that aims to act as a decentralized internet as well as a decentralized app store. Such a system needs currency to pay for the computational resources required to run the application or program. Here we have the digital ether coin.
Ethereum not only acts as a digital currency but also as a fuel for decentralized applications within the network. If a user wants to change something in an app within Ethereum, they must pay a fee via Ether for the network to make the change. The fee is calculated automatically based on the amount of gas, which is the internal pricing of the cost of executing Ethereum transactions and transactions that action requires. The amount of fuel required is calculated based on the amount of power needed for computing and how long it has been running.
Is Ethereum Like Bitcoin?
Ethereum and Bitcoin may be somewhat similar when it comes to cryptocurrency, but the truth is that they are two completely different projects with different goals. While Bitcoin has established itself as a relatively stable and more successful currency, Ethereum is a multi-purpose platform, and its digital currency, Ether is just part of its smart contract applications.
Even when comparing the coding aspect, the two projects seem to be quite different. For example, bitcoin has a maximum of 21 million bitcoins that can be generated, while the potential supply of ether can be endless. Moreover, the average Bitcoin block mining time is 10 minutes, while in Ethereum it is only 12 seconds, meaning it is definitely faster.
Perhaps the most important difference between the two projects is that Ethereum's internal code is complete code (it achieves the Turing test), which means that everything can be calculated literally, as long as there is enough computing power and time to do so. While Bitcoin does not have this possibility. But even though the complete code provides Ethereum users with unlimited possibilities, its complexity leads to security complications.
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