Crypto currency of the world. Ethereum. Alexander Sivtsov.
In this article, we will continue to get acquainted with the main crypto-currencies of the world and find out what Ethereum is and how it differs from Bitcoin.
History of Ethereum
Ethereum is a platform for creating decentralized online services, which, like Bitcoin, operates on the basis of a blockchain.
Ethereum takes its origin back in 2011, at this time Vitaliy Buterin became interested in blockchain technology and Bitcoin. Several years later, Buterin creates technical documentation for the product Ethereum. To launch the project, it took $ 18 million within the ICO, and the technology was launched in 2015.
The main differences between Ethereum and Bitcoin
- The main difference is that it is a software package in which the information about program codes is recorded in the blockchain and all decentralized applications are created on the Ethereum, while the Ethereum crypto currfency is Ether (ETH).
- The transfer of the currency (ETH) as an asset is fixed in the Smart Contract, which is also present in Bitcoin, but in Bitcoin’s system its possibilities are greatly simplified.
- Unlike both Bitcoin and other crypto-currency, the Ether is of an inflationary nature, since the amount of creation of new coins is not limited, which in the future may negatively affect its value. In turn, the number of Bitcoins is limited to 21 million coins, on the basis of which it has a deflationary nature.
- Also, the rather significant difference between Ethereum and Bitcoin is its relative decentralization, since there is a specific development team that takes on the main function of managing the system, which attracts investor confidence and provoked almost 100 times the growth of the crypto currency since the beginning of 2017. It is worth noting that, despite some centralization, global decisions are still made through a general network vote.
Conclusion
Drawing conclusions on this article, it is worth noting that the crypto currency Ether, in contrast to Bitcoin, is a more attractive tool for making payments. Thus, the growth of the price of a crypto-currency may be limited due to the inflationary nature, which excludes its accumulation at miners. It is worth recalling that to date Bitcoin is mainly used as an investment tool for the accumulation and augmentation of capital, in connection with which the daily turnover uses only about 10% of all coins.
Read my previous article on the topic: “Crypto-currency of the world: Dash and its differences from Bitcoin.“
Alexander Sivtsov