Ethereum (“ether”): what it is, features, differences from Bitcoin

Bitcoin and Ethereum are the two types of coins on which the entire cryptocurrency ecosystem rests. They are similar in that both are popular with investors. In the global ranking, both Bitcoin and Ethereum are in top positions. The market trend depends on them. What is the difference between Bitcoin and Ethereum?

What is Ethereum

Ethereum is a tool designed to launch decentralized applications, the work of which is based on smart contracts. This cryptocurrency serves as a unit of exchange in its ecosystem.

The main value of Ethereum is not crypto coins, but the options that the virtual platform provides. Based on it, various blockchain projects and charitable funds are created. Users get access to the system very easily. It is enough to activate the MetaMask extension for browsers.

The Ethereum system provides technologies for creating cryptocurrency networks. These are ready-made solutions, so there is no need to spend time and money on lengthy development. Ethereum can integrate tens of thousands of different applications for computers created in different programming languages. They can work and interact with each other. Smart contracts control the payment of the transaction, which ensures high security.

Opportunities Ethereum provides:

• Creating smart contracts to manage supply chains.
• Developing applications of any type from NFC games to utility programs.
• Digitizing physical assets: oil, gold, gemstones, manufactured goods and more.
• Document authentication and user or customer identity management.
• Organization of decentralized trading platforms.

Ethereum cryptocurrency is already a secondary product of the Ethereum system. These crypto coins are linked to smart contracts. They are created by validators of the network for a reward of 2 ETH. The generation process is very fast - about 15 seconds. The created block is validated and entered into the blockchain.

Differences between ethereum and bitcoin

The differences between these cryptocurrencies are big. The main differences between Ethereum and Bitcoin are:

• Bitcoin was created in 2009 and Ethereum in 2015.
• Bitcoin was intended to be an alternative payment system that can replace fiat money. Ethereum is a platform for creating and running applications that operate on smart contracts.
• These cryptocurrencies have different hashing algorithms and security protocols.
• Bitcoin issuance is limited to 21 million coins. And etherium coins can be issued in an unlimited number.
• It takes about 10 minutes to create a new bitcoin block. Ethereum comes into existence within 15 seconds.
• Validators receive 2 ETH for creating an Ethereum coin, and 6.25 BTC for bitcoin.

Ethereum is also different in that its creators are known - they are Vitalik Buterin, Gavin James Wood and Joseph Lubin. Bitcoin on the other hand was created by an unknown genius, no one has ever seen it. On the Internet, he is called Satoshi Nakamoto.