What Is Ethereum? What Makes It Different From Bitcoin?

What Is Ethereum?

Created in July of 2014, Ethereum is a blockchain, or a continuously growing list of records called blocks, on which transactions are recorded. Blockchain is a method by which records are stored securely and cryptographically and is generally viewed as a more secure method of recording transactions that could be manipulated or changed. Source: https://nodesd.com/ethereum.

Where Does The Code Come From?

Ethereum code is made up of four main components: the blockchain (a list of blocks where all transactions in Ethereum take place), the Dapp (decentralized application) engine, and Ether (ETH). The Dapp engine is similar to the Node.js code that powers a lot of web apps, except it is embedded into the blockchain code.

Ethereum Symbol: ETH

The Ethereum Network

The ETH network allows any user to create, deploy, and run smart contracts. These smart contracts are an elaborate computer program that can run without any need for a central authority or a bank account. These contracts run when specific conditions are met. Smart contracts can be created to facilitate escrow services, asset management, crowdfunding, and insurance contracts. Smart contracts are also the major features of The DAO, the first decentralized autonomous organization and one of the most well-known projects on Ethereum. The DAO, the first DAO, was launched on June 15, 2016, and was very popular, but also ran into problems. It has generated more than $150 million worth of Ether (ETH) in the last six months. What Is A Smart Contract?

Ethereum vs. Bitcoin

Bitcoin is a digital currency with its own blockchain and programming language. Unlike Bitcoin, which focuses on moving money around quickly, Ethereum focuses on providing its users the ability to create apps that execute code of their own. There is more than $200 million in value in Bitcoin being paid out in transaction fees and the token markets at the moment, compared with $18 million in Ether. With the rollout of Ethereum-based apps on the platform, we’re now seeing the beginnings of truly decentralized apps, or dapps. The point of the platform is to free the developers, designers, and investors from the traditional centralized structure of the “Blockchain 2.

The Ethereum Blockchain

An Ethereum transaction is verified by a peer-to-peer network, called the Ethereum blockchain. The network consists of computers running code written in the programming language Solidity. When someone runs an ETH transaction, they send a certain amount of ETH to an address on the blockchain. The sender of the transaction also specifies a series of amounts they want to send. It’s up to the recipient to confirm the transaction. They can do this either through using a private key associated with the sender’s wallet address or by simply stating on the blockchain that they received ETH. Eth the “fuel” of the Ethereum network, and ether, the cryptocurrency, are usually used by Ethereum users for computation. ETH has a limited supply of 21 million. Currently, about 15.

Ethereum’s Programming Language Solidity

What Is The Difference Between Bitcoin And Ethereum?

While Bitcoin is designed to be a currency, that’s not necessarily the case with Ethereum. Specifically, Bitcoin’s “currency” has no intrinsic value. Instead, it has value in that it can be used to buy goods or services with Bitcoin. On the other hand, Ethereum’s currency, Ether, does have an intrinsic value. That’s because it can be used as the “fuel” for decentralized applications on the Ethereum blockchain network. These applications are called “Dapps” and some of them are simply programs that anyone can write for the Ethereum network. The program on the Ethereum blockchain network is referred to as a Smart Contract.

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Conclusion

Some of the things in the list are for the long-term which I also like, and there are some things on the list that you should definitely start using, like encryption, or secure messaging, or taking advantage of automatic backups, or learning the basics of cryptography, or recognizing cryptocurrency is not a currency but a virtual token with its own internal value, and their purpose is to interact with our natural world in a decentralized and immutable way, and avoid middle men or transactions costs. Keep in mind that cryptocurrency is not a currency, but a token for exchange, and some cryptocurrenies, like Bitcoin, are intended as trading vehicles, not store of value. In addition, Bitcoin is not the only cryptocurrency out there.

Must See: What is the Polkadot project?

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