No matter how well you are aware of Ethereum and cryptocurrencies in general. You probably know that the first thing to google about this topic is the value of bitcoin and the value of Ethereum. Almost three years have passed since ETH received more than $12.5 thousand per broadcast. And the last six months the trend is increasing. So if you still do not know what Ethereum is and why it confidently ranks second in the capitalization of cryptocurrencies, we need to understand.
Quick reminder: if you want to buy a crypto debit card – come to us.
Terms about Ethereum
Blockchain. Like Bitcoin, Ethereum runs on blockchain technology. This is a sequence of interconnected blocks of information, where each subsequent block points to the data stored in the previous block. The most important thing is that the data can only be added, but never changed (except for the story of Ethereum Classic, but another time).
Bitcoin. It will be easier for you to understand Ethereum compared to the good old Bitcoin. Remember the income book (which was finally allowed to be taken out of circulation ?? Ра? The Council abolished the book of income tax for private individuals and improved the electronic office of the taxpayer), whose pages are numbered, so none can be torn out or replaced. Otherwise, the tax will have questions for you.
In the Bitcoin network, the transaction will simply not be missed if it is erroneous. But instead of paper, the blockchain is stored and tested simultaneously on thousands of devices. And to motivate miners to do this test, the rules of the network provide a reward. Is it currently 6.25 BTC? What is Bitcoin halving and how the cryptocurrency market will change after May 11 (updated)? There will be a total of 21 million bitcoins, of which more than 18.5 million (88%) are already in circulation.
Ethereum. The Ethereum platform also rewards miners (2 ETH per unit) but is not limited to broadcasts, as it produces them according to the inflation model. That is, in a year 4.5 million or a little more than 5 million will be added to 113 million broadcasts. Moreover, by the end of 2021, the network will move from Proof-of-Work (Bitcoin) validation to Proof-of-Stake, which should significantly reduce electricity costs.
As far as I know, monetary policy is just a small part of the picture. Ethereum is a programmable blockchain, unlike the traditional cryptocurrency, where you can write new programs.
In other words, it’s software that runs by itself. Non-human financial initiatives, known as DeFi, may now be carried out by blockchain developers thanks to smart contracts (decentralized finance). Dapps may be on a wide range of subjects, from logistics to online games to the real estate market. If you’d like, you may send an intelligent contact to everyone in the community, creating a decentralized independent group (DAO).
Solidity is the programming language used by Ethereum developers.
Advantages of Using Ethereum
Compared to the 10 minutes it takes to conduct a transaction in Bitcoin, Ethereum takes only a few seconds. Ethereum is also more efficient since it can store more transactions in one block (but this did not save from Crypto Cats, which for some time slowed down the entire network).
A single ecosystem is made up of a slew of exchanges, wallets, and decentralized application platforms (daps). With MyEtherWallet, for example, it is possible to store a wide range of ERC20-compliant coins. Ethereum is, after all, the foundation upon which the vast majority of the crypto industry’s tools are constructed.
Ethereum’s development community is always looking for ways to expand the network’s capacity without sacrificing its speed or dependability. As you can see, this is a big problem for the blockchain. However, obscure but important terms such as sharding and plasma should address this. At least for Ethereum.
A few years ago, BTC was a convenient way to transfer money without hindrance. Today, this cryptocurrency is reduced to the banal storage of its assets on the Ethereum wallet. In contrast, Ethereum cryptocurrency helps to fuel new blockchain projects and promote this technology. Ethereum is flexible, scalable, and fast. This platform is progressing faster and offers great potential for growth, stability and implementation of various business models. Are you here for the idea?