Ethereum is an open source, publicly available, chained model-centric computing platform and operating system that provides the smart contract protocol feature. Supports an updated version of the Nakamoto consensus protocol with transaction-based state transitions.
What is Ethereum?
Ethereum is a system first introduced at the North American Bitcoin Conference by Vitalik Buterin, the founder of Ethereum. Although generally seen as sub-currency, Ethereum is an innovative system that mainly aims to develop blockchain technology and use it in more areas.
In short, Ethereum is a Crypto Operating System that takes the Ether (ETH) cryptocurrency as its power source. The aim is to enable users to create new software on the blockchain system that Bitcoin is connected to. Thanks to this freedom that Ethereum provides to users, it allows many altcoins to be printed.
The purpose of the Ethereum system is to prevent the storage of information such as personal data by third parties and their use for different purposes. Today, almost all of the transactions we make over the internet (shopping, banking transactions, our use of social media, our internet history, etc.) are recorded in data banks. It is not completely known for what purpose this information will be used.
Although generally associated with Bitcoin, blockchain technology has many other applications that go beyond digital currencies. In fact, Bitcoin is just one of the few hundred applications that use Blockchain technology today. Until relatively recently, blockchain applications had a complex background with coding, cryptography, mathematics, and important resources. However, over time this has changed.
Ethereum makes all this possible by providing developers with the tools to build decentralized applications.
Ethereum Makes Money For Beginners!
Ethereum is currently the second largest cryptocurrency by most transactions after Bitcoin. The increase in value in a short time and its being more innovative than the Bitcoin blockchain raised the question of whether Ethereum could be a competitor for Bitcoin. However, Vitalik Buterin, the founder of Ethereum, says:
Like Bitcoin, Ethereum is a public network. While there are some important technical differences between the two, the most important distinction to note is that Bitcoin and Ethereum differ significantly in purpose and capability.
Bitcoin offers an exclusive application of Blockchain technology to the electronic money system that works without a central authority or bank using an innovative payment network, peer-to-peer technology. While Blockchain technology in Bitcoin is used to track the ownership of digital money (Bitcoin), Ethereum uses Blockchain technology to focus on the development and running of decentralized applications.
On the Ethereum Blockchain, miners feed the network and earn Ether in return. Beyond a useful cryptocurrency, Ethereum is also used by app developers to pay for transaction fees and services on the network.
Why did Ethereum rise?
Bitcoin, the highest volume unit of the cryptocurrency markets, saw an all-time high of $ 41,946.74 on January 8, supported by the rapidly increasing institutional purchases since the last days of last year.
Bitcoin, which fluctuated between $ 33,821 and $ 36,767 in the last 24 hours, increased 9.01 percent to $ 36,678.02, while the weekly earnings of the unit were calculated at 9.01 percent. Bitcoin’s total market volume also increased by approximately $ 53 billion to $ 683 billion.
While the value of 18 units fell from the highest volume 100 units in the last 24 hours in the crypto money markets, there was no fall from the top 10 units.
With the effect of increasing corporate purchases, the total market volume exceeding the 1.0 trillion dollar limit for the first time in history on January 7 increased from 1 trillion 14.2 dollars to 1 trillion 95.7 billion dollars in the last 24 hours.
According to the analysis, “Incoming Data, spot trading volume in cryptocurrency exchanges exceeded all previous records and exceeded $ 900 billion in January. Compared to December volumes, January transaction volumes increased by about 140 percent,” said the analysis. The rise of the virtual world’s silver coin is expected to continue.
What Are the Differences Between Ethereum and Bitcoin?
- While the transactions you can do with the Bitcoin system are clear, you can produce new systems and new sub-coins with very different software with the Ethereum system.
- • Ethereum system is a more innovative system compared to the Bitcoin blockchain system.
- • While you gain according to your processing power in Bitcoin mining, a balance is observed among producers in Ethereum mining.
- • It takes 10 minutes for a block to form in the Bitcoin system. Since the formation time of a block in the Ethereum system is 15 seconds, the confirmation time is much shorter.
How Is Ethereum Mining Done?
Mining is an important factor for the continuity and security of this system with the same Bitcoin logic. In order for Ethereum mining to be done by everyone, the system requirement is made with a graphics card (GPU), not with special production devices as in Bitcoin mining. The increase in the number of miners also causes a decrease in earnings in Ethereum mining day by day.
How Ethereum and Alt Coins Relate
Since the Ethereum system is an environment suitable for the creation of many new software, it is the system where many new coins that emerge later are traded. In the system where the Initial Coin Offerings, called ICO, to launch a new coin, collect massive funds before it is launched, the funds are made with Ether, the currency value of the Ethereum system. Thus, the Ethereum system acts as a system that allows new crypto currencies to enter circulation.
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.