What is Ethereum, and how is it better than Bitcoin?

Introduction

If you are watching tech news, then you must have encountered Ethereum, then the question arises that what is this Ethereum, And how has it gained so much fame in just a few years?

If we talk about Ethereum, then it is a rising star of the world of CryptoCurrency. It has achieved its position very soon and as of now, it has got the second position in the Crypto Currency List.

After its launch in 2015, the value of ether (Ethereum currency) has increased by more than 6,800 percent if we talk about the figures till 2017. Now the price of 1 Ether is almost near $4023.16. After Bitcoin, if any Cryptocurrency has gained so much popularity, then it is only Ethereum.

So that's why today I thought that why should not all of you be given complete information about Ethereum so that you also already know about it, which will make it easier for you to understand about it and buy it. Then without delay, let us know what is this Ethereum and how is it different from Bitcoin.

What is Ethereum?

Ethereum, which is also called Ether, is the third most valuable digital money after Bitcoin and whose market value is in second place right now. The technology on which it works is called Ethereum Blockchain. It was first brought to the world in 2013 by a 19-year-old Bitcoin programmer named Vitalik Buterin.

This CryptoCurrency has taken its popularity very high in a very short time. If we talk about its current valuation, then it will be around $458.60B billion, which is about $4023.16 per coin. This price keeps going up and down.

Buterin has improved Ethereum in such a way that it is much better than Bitcoin. Like Bitcoin, it is a Decentralized Payment Network that has its Cryptographic Currency, which we can send to any place in the world with the help of the Internet, and we will not have to depend on any bank or third party to do this.

These Coded Transactions are stored on a Decentralized Ledger which is also called Blockchain, and they are visible to all who live in the network.

Who created Ethereum?

As we know that the name of the creator of Bitcoin is Satoshi Nakamoto, which is an unknown person, about whom no one has the right information.

But the thing is different in Ethereum, the name of its father is Vitalik Buterin, who is a resident of Canada and who was born in Russia. He published this idea in 2013. And which took two years to set up completely.

Buterin is a very meritorious student who has a lot of interest in mathematics and won the Bronze Medal at the International Olympiad in Informatics in 2012.

He got the Thiel Fellowship which was worth $100,000 in the year 2014, after which he dropped out from the University of Waterloo. After a gap of one year, Buterin and Canadian entrepreneur Joseph Lubin started Ethereum Switzerland GmbH.

How is it different from Bitcoin?

Since it is the second-biggest cryptocurrency after Bitcoin, therefore Ethereum has always been compared with Bitcoin. But it has been seen that Ethereum is considered better than Bitcoin in many ways. So let's know about it.

The work of both is almost the same, but there is some difference between the two.

1. Shortening of Block Times –

Mining blocks in Ethereum take roughly 15 seconds, whereas in Bitcoin’s it happens at the rate of 10-minutes. Due to the fast, it takes very little time for the Blockchain to confirm the transaction data, which can lead to a maximum number of transactions.

2. Having a more Sophisticated Fee Structure –

Transaction fees in Ethereum are based on storage needs and network usage. Whereas, Bitcoin transactions are based on block size and keep competing with each other.

3. Having More Sophisticated Mining –

The mining of Bitcoin requires ASICs (Application-Specific Integrated Circuits), which require a high amount of capital investment to mine. Whereas Ethereum's mining algorithm has been designed keeping in mind the ASIC resistance so that mining can be decentralized easily.

4. No more Transaction Fees –

Transaction Fees are less in Ethereum than in Bitcoin.

5. Use of more and more technology –

In Ethereum, along with currency, other third-party applications are also allowed to run in the network, whereas in Bitcoin only currency is allowed to run in the network.

6. More Profit for Miners –

Miners earn more profit in Ethereum than Bitcoin.

How does the price of Ethereum affect?

Ever since Ethereum was launched, its value has been increasing slowly, while the price of bitcoin has increased quickly.

In between, the value of Ethereum had decreased significantly because someone had declared its founder dead, which was a rumor, due to which the value of Ethereum was reduced by 20% in a single day. Recently, many big companies have made excellent investments in Ethereum, due to which its value has increased significantly.

Ethereum puts more focus on “smart contracts”

Now the matter arises that what are these smart contracts? So I want to tell you that this contract is written in the code, which the creator(s) uploads in the Blockchain. If ever a contract is executed, then all the nodes which are present in the network run them, which are then uploaded to the Blockchain, and in the same way, they are stored in the Public Ledger, which theoretically tampers- There are proofs.

Small contracts are structured like if then statements when certain conditions are fulfilled, then that program fulfills that contract.

Because all the computers that are in the network are tracking all the transactions that are happening in the digital ledger, so it is not possible to Tamper or tamper with this thing. If someone has tampered with it, then everyone will know about it.

Ethereum team

Vitalik Buterin (CEO) – In 2011, with the help of Bitcoin, Vitalik Discovered cryptocurrencies and blockchain technologies. He saw Bitcoin Magazine in 2012 to understand Bitcoin.

After receiving the Theil Fellowship in 2014, he dropped out of the University Of Waterloo to work full time on Ethereum. Vitalik understood blockchain. the technology offered in the future and invented Ethereum in 2013.

Gavin Wood (CTO) – Met Gavin Vitalik in 2014 through a mutual friend. He Created the smart contract language Solidity. For the Ethereum Virtual Machine, (EVM), he also wrote the first yellow paper on the Ethereum blockchain.

Jeffery Wilcke – After Inception, he is looking after the implementation of Go programming on Ethereum.

Ming Chan – He is working as the executive director of Ethereum and oversees the regulatory and legal matters of the Ethereum blockchain.

How many people use it there?

Today, there are over 100 million cryptocurrency wallets that are holding Ether. Their number is also accumulating.

Should you invest in Ethereum?

If I talk about the value of Ethereum, then in a quick time, their value has Increased a lot and is increasing. One thing I want to tell you all is that there is no reality of the value of Cryptocurrencies, and they fluctuate.

That's why you must have heard about many such people and how they have become Millionaires in a brief time. All these things result from Ethereum. itself. So invest only as much as you can give.

What is the Future of Ethereum?

The value of Ethereum has been increasing continuously since the time Ethereum originated, investors believe it will continue to grow like this in the Years to come. So if an investor wants to invest in this, then he can invest with no hesitation.

This is also because many big companies such as JP Morgan Chase and Microsoft have invested their money in it.

But I believe that if you do not have the money to invest, then do not invest in it by taking loans, it can prove dangerous in the future. Invest as much as you can afford. It would be advisable to do excellent research before investing the rest. Only time will tell what the future of Ethereum is going to be in the future. Do you know you can also become a big millionaire in the future?

The End!

I hope you found this article valuable. If yes, let me know in the comments 😊

Also, if you got questions ping me anywhere.