Bitcoin is perhaps the generally recognized cryptocurrence of the king, but there is a new child in the neighborhood that proves to be an irresistible prospect of the market.
Ethereum may not have penetrated public awareness until 2015, but its decentralized Blockchain capabilities have made it a success that it has acted on today. around $ 1,400 at the start of 2018.
So how did Ethereum become a crypt-based success story and what makes it so popular? We thought that we would think about the rise and emergence of the cryptocurrency.
The origin story of Ethereum
Vitalik Buterin, a programmer from Toronto, became interested in Bitcoin and his possibilities around the beginning of the decade before he devised his own version of a cryptocurrency with almost unlimited potential.
By 2013 Buterin's vision was refined into a white paper. His intention was to create an alternative platform for every type of application that developers would like to build.
Ethereum would transcend the kind of financial use cases that was made possible by Bitcoin, make it easy to create smart contracts and self-checking code that developers can use for a range of applications.
The excitement surrounding Buterin & # 39; s white paper was tangible and to get the project off the ground, a crowdfunding campaign was set up in 2014 – inviting interested parties to buy Ethereum tokens, or Etherthat acted as shares in the project.
At that time, the crowdfunder became the most successful campaign of its kind and raised more than $ 18 million. A year later, the first live release of Ethereum, Border, was launched and offered developers the opportunity to create their own decentralized apps.
The value of Ethereum for blockchain
Like Bitcoin, Ethereum contains a shared record of its transaction history in a secure Blockchain – and each node on the network saves a copy of this history.
However, the biggest advantage of Ethereum is the use of smart contracts & # 39; The beauty of smart contracts is that you can set up a transaction based on a range of different conditions that must be met when they occur.
Because Blockchain drives smart contracts, developers can create applications that never go offline and can not be edited by third parties.
Again, smart contracts offer users much more freedom in their transactions, thanks to the possibility to add criteria.
BitDegree.org note the example of buying a house as the perfect way to illustrate the power of the smart contract. Traditionally, the purchase of a property depends on several third parties, such as lawyers and real estate agents, but thanks to smart contracts, ownership of the property is confirmed once a predetermined condition has been met. The transaction therefore looks something like & # 39; John transfers 200 ETH & # 39; and once the payment has been verified, John can rightfully claim the ownership of the house.
Current applications for ether and blockchain
There are already many companies that offer investors already to take ownership of the property by using the Blockchain platform in combination with Ethereum. Will Andrich, co-founder and CEO of Thaler.One, said the ultimate goal of real estate ownership through Ethereum is "transforming and democratizing investment property".
The potential that smart contracts hold is virtually limitless and can apply to expensive transactions by car dealerships, real estate and e-commerce – even freelance contracts can be set up that provide much better security for both parties.
Basically, Ethereum will forever be compared to Bitcoin by observers and market commentators, but in reality both cryptocurrencies play a very different role.
While Bitcoin is more fluid than Ethereum With lower, value-added, coin-operated imports, the potential use cases for Ethereum are much larger – with better applications and technology.
Ethereum vs Bitcoin
Given that Ethereum is six years younger than Bitcoin, its technology is newer and capable of performing more complex tasks, and thus the Blockchain can work well with the smart contract functionality of Ethereum.
Another big advantage of Ethereum's superior technology is the pace of transactions with the cryptocurrency. With payments processed in seconds instead of minutes, managing the money transfer is much easier than through crypto-competitors.
It is important to note that despite the power of smart contracts and the zero-downtime applications of Ethereum, there is still room for incidental attacks of human error. This is because the code of smart contracts is written by people – leaving them open to errors and bugs that can cause unfavorable conditions.
Fortunately, because of the depth of the Blockchain network that Ethereum is working on, it is relatively easy to overwrite broken code with the permission of the other users of the network, but it is worth repeating that it is not advisable to wind-cryptocurrency, no matter how safe and impenetrable it is.
Despite billing by some as an alternative to Bitcoin, Ethereum represents much more than a decentralized cryptocurrency. With advanced technology and instantaneous waterproof transactions, it seems only a matter of time before the new child in the neighborhood comes to the forefront of the digital market.
- My name is Dmytro and I am a CEO at Solvid and founder of Pridicto, a web analysis startup program that AI and Machine Learning use to predict internet traffic, monitor vital measurement data and set visual traffic targets.