The Ethereum cryptocurrency, called ethereum or ether, was developed and is now one of the main contenders for the bitcoin crown.
- What is the uniqueness of the Ethereum cryptocurrency and its main features
- Why was Ethereum created
- Opportunities and areas of use
- Ethereum Virtual Machine Features
- Difference between Bitcoin and Ethereum
- Advantages and disadvantages
- Where can I buy or sell Ethereum
- How to mine Ethereum
- Ethereum Classic: where it came from
- Prospects and forecasts for the future
- Interesting facts about Ethereum
As you know, BTC and ETH are similar in many ways, but there are also a number of significant differences between them.
The founder of Ethereum, Vitalik Buterin, had some programming experience, and was also generally keenly interested in the world of cryptocurrencies since 2011. Work on creating our own project began in 2014 with the crowdfunding procedure. After raising more than 31,000 BTC or $18 million, as well as the attention of banking and financial organizations, the project was partially launched already in 2015 (see History of the Origin of the US Dollar). Full-fledged work began in 2016, and from that moment on, the new cryptocurrency began to rapidly gain popularity.
What is the uniqueness of the Ethereum cryptocurrency and its main features
The Ethereum technology on which this electronic currency is based is quite unique and in many ways surpasses bitcoin. We are talking about smart contracts (smart contracts) that allow you to register transactions involving various assets. This is one of the unique features of the cryptocurrency in question.
In addition, we can say that it has features in the form of increased mining productivity, as well as high transaction processing speed. In addition, Ethereum is characterized by fast generation of new blocks, stable profit from mining and the presence of its own internal code.
Why was Ethereum created
Many believe that Ethereum was created to correct the shortcomings that Bitcoin has. Despite a number of undeniable advantages and merits, Ethereum can hardly be called Bitcoin 2.0. However, the Ethereum or Ethereum cryptocurrency is firmly in second place among all in the world.
It is also well known that the cryptocurrency boom in 2016 and 2017 is associated with the launch of Ethereum. It is during this period that the maximum concentration of start-ups and new projects, which attracted huge financial investments, falls. At the moment, Ethereum has a good forecast for further price growth.
Opportunities and areas of use
Ethereum, due to its characteristics, is one of the most popular and widespread cryptocurrencies. The main areas of use are the performance of certain functions: the storage of assets, the creation of an investment asset, a payment instrument. In addition, the Ethereum platform allows you to develop and create new decentralized projects on the blockchain for various purposes.
Ethereum Virtual Machine Features
The Ethereum platform is capable of accepting any programming language, including so-called visual programming languages. This makes this platform flexible and versatile.
This was achieved thanks to the use of the EVM – the Ethereum virtual machine. It represents a Turing machine that compiles smart contracts directly into bytecode to be sent to the blockchain network. In this case, all the costs of using the computer are borne by the network.
Difference between Bitcoin and Ethereum
It is well known that BTC and ETH are similar in many ways as they are blockchain platforms. However, the functionality of bitcoin has annoying limitations, as well as the scope. In addition, the complexity of the Ethereum network remains unchanged, unlike Bitcoin.
The main feature of bitcoin is the ability to conduct transactions with an increased level of anonymity, which, however, has shown little in practice over time. Thus, bitcoin is a financial instrument characterized by multifunctionality, decentralization and anonymity.
Ethereum is a full-fledged platform for running decentralized applications using smart contract technology. Unlike BTC, Ethereum finds application in many different areas.
Advantages and disadvantages
Considering such a question as the advantages and disadvantages of Ethereum, the concept should be divided into two components: cryptocurrency and platform.
In the case of a cryptocurrency or a token, there are no serious shortcomings. Of the possible weaknesses, only those disadvantages that are also characteristic of bitcoin can be named – exchange rate volatility, lack of regulation, exchange rate dependence on world news, and a ban on advertising in various sources and platforms. Among the advantages, a high speed of transaction processing and an increased payment potential stand out.
Regarding the platform, we can say that its advantages are universality, flexibility, accessibility and publicity. Among the disadvantages: centralization and vulnerability (hacker attacks on mining programs, possible government bans and fines).
Where can I buy or sell Ethereum
Like any other popular cryptocurrency, Ethereum can be easily bought on many cryptocurrency exchanges. Operations for the sale of electronic money data are also carried out here. In addition, there are various online exchangers that provide the opportunity to exchange cryptocurrency and fiat for ETH.
How to mine Ethereum
Many beginners in the world of cryptocurrencies are wondering how to start mining Ethereum. The process of mining Ethereum is no different from mining any other cryptocurrency. This process is carried out mainly on video cards. And mining Ethereum on an Nvidia graphics card allows you to achieve maximum efficiency. Mining Ethereum on the processor is also possible, but it is not economically viable.
Based on the characteristics of the video card, all other equipment is also selected, which should have a certain power reserve. After selecting and configuring the equipment, you will need to select a pool where you can mine Ethereum. In addition, you will need a specialized client program for mining Ethereum.
Ethereum Classic: where it came from
The formation of a fork, that is, the process of splitting a cryptocurrency, occurred as a result of a digital attack. Many investors who invested in the original Ethereum blockchain lost their money at the same time. To remedy the situation, the developers launched an alternative coin Ethereum classic.
This made it possible to return funds to investors and reputation to developers. The former owners of ETH received a double profit, and new investors began to consider a new and interesting cryptocurrency for investment. Over time, the fork has become almost equivalent to the original version and is now no less popular.
Prospects and forecasts for the future
Despite the enthusiasm of many participants in the crypto-currency world and the good forecasts of experts for 2018 regarding the ether, this cryptocurrency is still waiting for obstacles that need to be overcome.
First of all, do not forget that ethereum, like bitcoin, is based on blockchain technology. This, in turn, raises the important issue of scalability, which can reduce the speed of transaction processing and provoke the formation of queues. In addition, Ethereum can be cloned, which will take away not only its audience, but also its financial share.
Despite some concerns and shortcomings, Ethereum has repeatedly shown an increase in the rate, as well as an increase in the volume of investments. The forecast for the Ethereum cryptocurrency for 2018 states that this trend will continue. In addition, Ethereum is gaining more and more recognition and support from large structures, which clearly sets it apart from its competitors.
Interesting facts about Ethereum
Carrying out the description of the Ethereum cryptocurrency, we will also give some interesting facts about it.
- Knowing how Ethereum works, we can safely say that this electronic money is an inflationary currency. Speculative exchange rate growth and inflation manifest themselves from time to time, however, many investors continue to invest in ETH, considering it a reliable tool.
- Relative decentralization is one of the characteristics that apply to Ethereum. This was one of the factors that caused the increase in the popularity of ETH and the transition of a part of the audience from BTC to it.
- The transition from a POW system to a new POS mining method is becoming less of an idea and more of a reality every day. Such changes quite radically affect the participants in the network.
