If you are watching Tech news, then you must have encountered Ethereum, then the question arises that what is Ethereum ? And how it has gained so much fame in a few years. If we talk about Ethereum, then it is a rising star in the world of Crypto Currency. It has achieved its status very soon and, speaking of now, it has secured the second place in the Crypto Currency List.
Since its launch in 2015, the value of ether (ethereum’s currency) has increased by more than 6,800 percent if we talk about the data till 2017. Now the price of 1 Ether has almost come to around $ 480. After Bitcoin, if any CryptoCurrency has gained so much popularity, then it is only Ethereum.
Ethereum, also called Ether, is the third most valuable Digital Money after Bitcoin and whose market value is in the second place right now. The technology it works on is called Ethereum Blockchain. It was first introduced to the world by a 19-year-old Bitcoin programmer named Vitalik butter in 2013.
This CryptoCurrency has taken its popularity to the very top in a very short time. If we talk about its current valuation, then it would be around $ 46 billion (£ 34bn), which is about $ 480 per coin. This price keeps going down.
Buterin has improved Ethereum in such a way that it is much better than Bitcoin. Just like Bitcoin, it is a Decentralised Payment Network that has its own cryptographic currency which we can send to any place in the world with the help of the Internet and we will not have to depend on any bank or third party to do so.
These Coded Transactions are stored on Decentralised ledger which is also called Blockchain and is visible to all those who live in the network.
Who made Ethereum?
As we know that the name of the person who made Bitcoin is Satoshi Nakamoto, who is an unknown person, about whom no one knows the correct information.
But the thing is different in Ethereum, its parent’s name is Vitalik Buterin, who is a resident of Canada and who was born in Russia. He published this idea in 2013. And that took two years to fully set up.
Buterin is a very brilliant student with a strong interest in mathematics and won the Bronze Medal at the International Olympiad in Informatics in 2012.
He received the Thiel Fellowship which was worth $ 100,000 in 2014 after which he dropped out of the University of Waterloo. After a gap of one year the launch of Ethereum Switzerland GmbH consisting of Buterin and Canadian entrepreneur Joseph Lubin.
How is it different from Bitcoin?
Because it is the second-biggest cryptocurrency after Bitcoin, Ethereum has always been compared with Bitcoin. But Ethereum has been seen in many ways better than Bitcoin. So let’s know about this.
The work of both is almost same but there is some difference between the two.
1. Shortening of Block Times – Mining blocks in Ethereum takes roughly 15 seconds while in Bitcoin’s they are at a rate of 10-minutes. Being quick, Blockchain takes a very short time to confirm the transaction data which can lead to more transactions.
2. Having more Sophisticated Fee Structure – In Ethereum, transaction fees are based on storage needs and network usage. Bitcoin transactions are based on block size and compete with each other.
3. Being more sophisticated Mining – Bitcoin mining requires ASICs (Application-Specific Integrated Circuits), which needs a large amount of capital investment to mine. At the same time, the algorithm of Ethereum’s mining has been designed keeping in mind the ASIC-resistance, so that mining can be decentralized easily.
4. Lack of more Transaction Fees – Transaction Fees are less in Ethereum compared to Bitcoin.
5. More and more technology to be used – In Ethereum, along with currency, other third party applications are also allowed to run in the network, while in Bitcoin only the currency is allowed to run in the network.
6. More Profit for Miners – Miners earn more profit than Bitcoin in Ethereum.
How is Ethereum Price affected?
Ever since Ethereum was launched, its value has been increasing gradually, while the price of bitcoin has increased very quickly.
The price of Ethereum was reduced significantly in the middle as someone had declared its founder dead which was a rumor, due to which the value of Ethereum was reduced by 20% in a single day. Recently, many big companies have made a good investment in Etherem, due to which its value has increased significantly.
Ethereum gives more focus on “smart contracts”
Now the question arises what are these Smart Contracts ? So I want to tell you that this contract is written in code, which the Creator (s) upload in the blockchain. If ever a contracts are executed then all the nodes which are present in the network are run, which are then uploaded in the blockchain, and so they are stored in the Public Ledger which is theoretically tamper- are proof
Small Contracts are structured like If-then statements, when certain conditions are fulfilled then that program fulfills that contract.
Because all the computers which are in the network are tracking all the transactions happening in the digital ledger, so it is not possible to tamper or tamper this thing. If someone has tampered with it, then everyone will know about it.
Vitalik Buterin (CEO) – With the help of Bitcoin in 2011, Vitalik discovered cryptocurrencies and blockchain technologies. He looked at Bitcoin Magzine in 2012 to understand Bitcoin.
After receiving Theil Fellowship in 2014, he dropped out of the University of Waterloo to work full-time at Ethereum. Vitalik understood what blockchain technology has to offer in the future and in 2013 he invented Ethereum.
Gavin Wood (CTO) – In 2014, Gavin met Vitalik through a mutual friend. He created the smart contract language Solidity. For Ethereum Virtual Machine (EVM), he also wrote the first yellow paper on the Ethereum blockchain.
Jeffery Wilcke – After the inception, he is looking at the implementation of Go programming on Ethereum.
Ming Chan – He is working as the executive director of Ethereum and supervises the regulatory and legal matters of the Ethereum blockchain.
How many people use ethereum?
Today, there are more than 12 million cryptocurrency wallets that are holding ether. Their number is also increasing gradually.
Should you invest in Ethereum?
If I talk about the price of Ethereum, then in a very short time their value has increased considerably and is increasing. One thing I want to tell you all is that there is no reality of the value of Cryptocurrencies and they fluctuate.
Therefore, you must have heard about many such people, how they have become crorepati in a very short time. All these things are the gift of Ethereum. So invest as much as you can afford.
What is the future of Ethereum?
Ever since Ethereum was born, the value of Ethereum has been steadily increasing, with investors believing that it will continue to grow in the years to come. So if any investor wants to invest in it, then he can invest irresistibly.
This is also because many big companies such as JP Morgan Chase and Microsoft have invested their money in it.
But I believe that if you do not have the funds to invest, do not invest in it with loans, it can prove dangerous in the future. Invest as much as you have a disability. It is advisable to do research in a good way before making any other investment. Only time will tell what the future of Ethereum is going to be in the future. Do you know that you can also become a big millionaire in the future.
Also Read This – What are cryptocurrency and their types