What is Ethereum?

Ethereum and Bitcoin are often mentioned in the same breath. ETH tokens are indeed a tradeable cryptocurrency like Bitcoin tokens. Likewise, Ethereum is a blockchain-based network like the Bitcoin network. But that’s where the similarities end. This article will give you a brief overview of what Ethereum is and what it does.

The difference between Ethereum and Bitcoin

The Bitcoin blockchain was developed with the sole purpose of tracking the ownership of Bitcoin tokens. The main purpose of Bitcoin is to provide an alternative to online banking and payment services like PayPal.

The purpose of Ethereum, on the other hand, is much broader in scope. The network doesn’t focus exclusively on financial transactions. Rather, the Ethereum platform facilitates the development of apps.

This difference gives Ethereum a much broader range of applications. It could be used to create a decentralized version of Google Docs. It could be used to create a blockchain-bases version of DropBox.

Any online service you’re using right now is centralized. Ethereum allows for all those services to become decentralized. Its broad utility makes Ethereum the platform of choice for many ICOs — which we shall cover shortly.

What is Ethereum?
What is Ethereum? More than just a token.

Ether tokens

Ether (ETH) is a cryptocurrency token native to the Ethereum platform. As with Bitcoin, miners can earn Ether tokens by contributing to the network. The tokens can be used to pay for transaction fees and other Ethereum-based services. Finally, Ether tokens can also be traded on the majority of cryptocurrency exchanges. It ranks as one of the top three cryptocurrencies along with Bitcoin and Ripple.

Smart contracts

Ethereum is perhaps best known for its smart contract technology. Smart contracts are pieces of code that facilitate transactions between people. They work on the if/then principle, which has been compared to using a digital vending machine. If you insert coins, then you get what you pay for. For example, let’s say a merchant creates a self-executing smart contract. Once the customer makes a payment, the smart contract delivers the product. 

GAS tokens

Smart contracts also require miners to facilitate their use, which means someone has to make them work. GAS tokens is a cryptocurrency tied to smart contracts. Users pay GAS tokens to Ethereum miners for their work, just like Bitcoins are awarded to miners for verifying transactions.

What is Ethereum?
What is Ethereum? A cryptocurrency or many cryptocurrencies?

ERC20 tokens

The Ethereum platform allows developers to launch platforms of their own without having to create a new blockchain. In addition, Ethereum also allows for the creation of new cryptocurrencies. The vast majority of ICOs use ERC20 tokens as their native cryptocurrency. Like Bitcoin and Ether, these tokens can be traded on exchanges if they become valuable enough.

Advantages of Ethereum

The advantages of the Ethereum platform are very similar to those of the Bitcoin network. All apps and data are immutable, incorruptible because they are on a decentralized network. Furthermore, they are not susceptible to hacking, and never experience downtime.

Disadvantages of Ethereum

Applications and smart contracts using the Ethereum network are susceptible to human error. If an app hasn’t been programmed properly, it could potentially be exploited by users.


4 thoughts on “What is Ethereum?

  1. Bitcoin/Binary Options will overtake banks just like email did to post offices, so don’t give up. I started buying BTC when it was $5000, I bought 4BTC at first, I used to Buy and Hold until i came across a testimony about a Trader Mr Smith that teaches people how to trade and increase their Bitcoins,the first week working with him I increased my 4 BTC to 18BTC, , his Binary Option is also amazing with great and 100 percent secured.Increase the little you have, You can write him on whatsapp +15162001939 or text/call +1-(646)-582-9402 for inquires

  2. I know it sounds crazy but Wealthy investors and rich people don’t want the average person making money or being pioneers. Greed is a monster in the world. It takes only an angel to show you ways how to make money and earn passive income. I have been in the crypto space for so long trying to figure when to buy and when not to. A friend of mine informed me about Mr.Smith that is a expert trader and he later gave me professional guidance and also recommended good graph for me with accurate signals . It was my first time of trading cryptocurrency and I have felt confident in my decisions. I have made 10 times on my trading capital in 3 weeks and with the market making large moves and the support and mentoring I get from Mr. Smith, I am going for even bigger goals. Mr. Smith is available for reach on Whatsapp (+15162001939) and text/call +1-(646)-582-9402 for inquiries

  3. Cuidado con el Sr. Smith
    Esto tiene un olorcillo a estafa que tira para atrás, desconfíen de personas o sistemas que prometen triplicar o cuadriplicar su capital en una o cuatro semanas, eso no existe y si alguien fuera capaz de hacerlo tengan por seguro que no lo publicaría de esta manera.

  4. This is the perfect webpage for anybody who wishes to find out about this topic. You understand so much its almost tough to argue with you (not that I personally would want toÖHaHa). You certainly put a brand new spin on a topic which has been discussed for many years. Wonderful stuff, just excellent!

Comments are closed.