Ethereum is an open source software platform based on Blockchain technology. It allows users to create and develop various decentralized applications.
Ethereum, of course, is a cryptocurrency that has characteristics that are characteristic of cryptocurrencies. However, it differs from, for example, the most in demand bitcoin today. Both Bitcoin and Ethereum operate on the Blockchain network, both cryptocurrencies can be mined. If miners collect bitumens in the case of bitcoin, they start to accumulate air when extracting ether.
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As for trading on the exchange. Ethereum growth has begun on the world market since 2016. Ethereum reached its highest level on May 20, when 1 ethereum was valued at $ 14 and 80 cents. Capitalization was 1 billion 187 million. About a year later, on June 20, 2017, Ethereum again showed the highest position in the year, at $ 376 and 36 cents, with capitalization of 34 billion 869 million.
The difference between bitcoin and ethereum
Bitcoin is designed to perform state currency functions for online payment. In this regard, bitcoin is a digital alternative to the traditional currency. Accordingly, the Bitcoin Blockchain is allocated directly to control the ownership or transactions of bitcoins.
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Ethereum Blockchain is focused on software development of various decentralized applications. Gavin Wood, co-founder of Ethereum, explained the difference between Bitcoin and Ethereum: “First of all, bitcoin is a currency. It's one specific use form of Blockchain, but it's not just an app. Looking at an example from the past: Miley Cyrus is one particular form of Internet use that has helped popularize the Internet, but the Internet has many other possibilities. ”
Instead of creating an original Blockchain for each new application, Ethereum can develop thousands of applications on one platform.
Importantly, Ethereum also works with "smart contracts". "Smart Contracts" is a computer program that allows interested parties to execute and enforce contract terms using a special code. The use of “smart contracts” can significantly transform the operational and transaction risks associated with the contract, accelerate and ensure the performance of the rights and obligations assumed by the contracting parties.