Ethereum (ETH) is an open software platform based on block technology. It allows developers to build and run decentralized applications. In fact, the Ethereum is much more than the crypto currency, which is just one of its sides.
Does it look like the Bitcoin? And yes, and no ...
The common ground between them is that they are distributing a public technology network - known as a block chain. But so far the similarities between the two crypto currencies are over. The Bitcoin offers a single application - an electronic money system for online user-to-consumer payments.
Or the Bitcoin is simply a currency in a very clean form. And although the Bitcoin uses block technology to track who owns the currency, Ethereum uses block technology as a platform for managing almost every decentralized application.
Bloomberg described the Ethereum as
"shared software that can be used by everyone but protected from forgery. So it's possibilities are really endless! "
Where does the Ethereum come from and who invented it?
The Ethereum was initially created in 2013 by the Russian programmer, Vitalyk Buterin, who previously worked with the Bitcoin. An online sale, made in 2014, has formed the core of funding for the new platform.
The system became reality on July 30, 2015, with 11.5 million "coins" in circulation.
#How does the Ethereum work?
In the Ethereum block chain, instead of digging the coins, as in the Bitcoin, the users are working to bring out the Ethereum - the kind of crypto currency that feeds the entire network. In addition to being tradable crypto, the Ethereum is used by software developers to pay for the Ethereum network services.
What is Block Chain Technology?
Block chain is a decentralized public register for all transactions that have ever been made on a particular network. A number of transactions from a database unit called a "block".
Each block contains information about the previous block, as well as each transaction - information about the previous transaction. In this way, the chain (block) allows full transparency of payments.
The Bitcoin block chain featured a revolutionary infrastructure for storing financial data that is accessible to everyone, completely transparent and developed with the use of open source, which does not belong to any organization or personality. Instead, block technology and its support are powered by millions of computers that verify transactions and add them to blocks.
Collectively verified transactions can not be altered or deleted, so the Bitcoin are final and undisputed.
In terms of Ethereum, Ether is a block that plays the role of a database tracking owners and transactions on the web.
Where can you spend Ethereum?
Ethereum is increasingly used to pay for certain goods and services online within the Ethereum network.
Price History of Ethereum
As can be seen from the graph below, from the entry of the Ethereum in 2015 as the crypto currency, the Ether exhibits slow signs of progress. This year, however, things have changed radically. 2017 is a completely "different story" about the crypto currency.
It traded at levels of only $ 9.76 at the beginning of the year to reach a historic peak at $ 407.10, or an increase of over 5,000.
Source: World Coin Index 4
Why did the price of Ethereum rise so fast?
What is the reason for this bullish trend? The answer is simple and complicated. To a large extent, however, the appreciation of the Ethereum is predetermined by investors' awareness of the crypto currency.
The more the investing community gets acquainted with and informs about crypto currencies, such as Bitcoin and Ether, the more interest is generated. In the case of the Ether, the exceptional appreciation was largely predetermined by the quest of the familiar windmill investors entering an earlier stage in the development of the Ether.
This at a time when 1 Bitcoin is traded at a level of 2660 dollars!
Is Ethereum secure? What are the risks associated with trading with Ether?
The Ether is completely secure. It may, however, be associated with moments of extreme volatility, which is often a sought-after characteristic of an instrument by many traders.
picture source - ISTOCK
Great post. I'm still learning about cryptocurrencies so this was helpful thank you.
Tell em Rev;)
Good times come for Ether and Bitcoin for sure :))
Really great post, let's upvote! :)
Thanks @tujisas
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