Ethereum (ETH) 101
When it comes to crypto, people automatically think about Bitcoin due to what seems to be its ever rising value and market cap. However, there are so many other cryptocurrencies which are catching tractions with Ethereum (ETH) being the number two highest market cap crypto with just under 140 billion USD at the time of writing.
Origin of Ethereum
Ethereum was created in 2014 by a group of programmers led by Russian-Canadian Vitalik Buterin. The first ETH tokens were sold in a fundraiser where the founders raised over 18 million USD worth of ETH token to get ETH off the ground.
Since then, hundreds of programmers and developers have adopted ETH as the blockchain and ETH grew to be the number two crypto in the world behind Bitcoin.
What is Ethereum?
ETH is a software platform which is blockchain-based possessing all the goodness programmers like such as open-source and decentralized. ETH is a blockchain that allows the use of Smart Contracts and Distributed Application (DApps).
Smart contracts are lines of code that contains the buyer’s and seller’s agreement. This is by far the most important features of ETH, attracting a lot of loyal users. In essence, smart contracts eliminate the need for anything physical including money, professionals or intermediaries in a transaction.
Practically, this means the cost of transaction can be minimized and smart contracts also provide an extra layer of security for both the buyer and the seller since ETH will cancel the transaction if any agreements were breached by either parties. This is one of ETH’s unique features.
Decentralized applications (DApps) are apps that run on the ETH blockchain or P2P network instead of running on a server, it is a decentralized applications. For example, developers can develop apps like twitter but being completely decentralized where no one can act as a moderator to delete posts.
Ethereum vs. Bitcoin
Let’s put up a head to head comparison between ETH and Bitcoin, comparing their unique features and characteristics.
- Bitcoin trades in cryptocurrency instead of smart contract.
- Bitcoin requires miners to use high-spec computers to perform Proof of Work security protocol.
- The average block time of Bitcoin is approximately 10 minutes, making transactions slower than ETH.
- Block rewards are distributed to miners after performing block verifications.
- Most of what’s mineable has already been mined – 21 million mined.
- Ethereum is not limited to cryptocurrency has the only method of exchange. Users can also use smart contracts.
- Ethereum utilizes the Proof of Stake (PoS) security protocol instead of Proof of Work.
- The average block time for ETH is approximately 12 seconds, as compared to 10 minutes with BTC which is much slower.
- ETH’s rewards are transaction fees instead of block rewards.
- There is no ceiling or oimit to ETH’s supply. In fact, the supply of ETH goes up every year.
The status of ETH
There is no doubt that popularity of ETH amongst developers have allowed ETH to reach a new height in adoption and value. The future of ETH seems unlimited as it is a very flexible blockchain allowing improvements by community and with its unlimited supply, it seems ETH is bound to become even a bigger challenger to BTC as it is now.
With the ETH bull-run going on, do not miss out and join the crypto revolution and start HODLING at Bitprive!
Disclaimer: The content herein is not, and is not intended to be, legal, financial, investment, or other advice.
About Bitprive (BPVE)
Bitprive is a Blockchain startup focusing on developing a regulated global cryptocurrency OTC marketplace with 180+ popular payment methods in the world.
Verified users can list buy and sell offers on the Bitprive platform for multi-cryptocurrency trading with a wide range of digital and physical payment methods. On top of providing the platform technology and matching services, we also provide the BitEscrow Network where crypto is held in our Bitprive hot wallet before the payment is confirmed. Once the seller confirms payment, Bitprive releases the crypto from the BitEscrow Network to the buyer’s Bitprive wallet.
At Bitprive, we value security and efficacy.