What is Ethereum & How Does it Differ from Bitcoin?
by The Blockchain Diary on 2018-12-02
Ethereum in its simplest form, is an open-source coded public blockchain featuring smart contract functionalities via transaction-based state transitions. In other words, Ethereum is meant to be a world computer. While Ether is decentralized cryptocurrency or digital currency on the Ethereum Peer-to-Peer Blockchain Platform. Mistakenly, this currency is also mentioned to as “Ethereum”. Today, Ethereum is being used to send payments, to pay for transaction fees & computational services on the Ethereum network as well as to create (institutional/personal) tokens/coins using smart contracts and decentralized apps (DApps).
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How did it come from?
In late 2013, Ethereum was proposed by Vitalik Buterin, a 19-year-old Russian-Canadian developer and cryptocurrency researcher. Software Development was funded by an Initial Coin Offering (ICO) that took place in mid-2014 and network was launched in mid-2015, with 72 million pre-mined coins to distribute among the Investors and Foundation (Team members).
Or we can say what additional features Ethereum can offer other than Bitcoin? The answer to this question is the purposes of the both projects. Bitcoin focuses to be a store of value, which could replace traditional fiat currency. While Ethereum focuses to become a platform where smart contracts and DApps can run.
So, what are these Smart Contracts?
Smart Contracts are the contracts in which conditions are written in open-source code to create blockchain client, which is used to run nodes and to update the whole network. Now, when these conditions are met, the client carries out the certain terms of that contract. As Smart Contracts run on the blockchain, they run exactly as programmed without any possibility of censorship, downtime, fraud or third party interference.
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