We all have heard of bitcoin. But have you heard of Ethereum? Are ethereum and bitcoins the same? Is ethereum a form of digital currency like bitcoins? Yay, yay, we can hear all your questions.
Well, we have the answers to your questions. Let’s have a deep dive into ethereum and it’s work application.
Ethereum was created by Vitalik Buterin in the year 2015 of July through ICO, a particular coin release method. He said that
“The day if crypto succeeds, it’s not because it empowers better people. It’s because it empowers better institutions.” Vitalik Buterin, founder of ethereum.
To all those who know what blockchain is, would have come across this term called ethereum. So let's look at a probable definition of ethereum.
Ethereum runs in a blockchain technology which is an open-source platform that enables us to create applications or anything that comes under terms of money which will be accessed by any part of the world and of course.
Yes, it is decentralized. It has come up with new ideas like smart contracts, decentralized autonomous authority, and smart property. The average time to block one ethereum takes about just 10-15 seconds approximately whereas, in bitcoin, it takes about 10 minutes.
Now, many people have this doubt on whether bitcoin and ethereum are the same. Well, not really but both of the technologies have this decentralization concept. Bitcoin’s base concept would be on digital money whereas ethereum’s concept is based on world computers.
And now, what’s this whole new term “world computers”?
World computers are making progress to replace the servers and clouds with nodes that will be run by the miners across the world.
Talking about servers and clouds, they all are in a centralized form which is quite a little disadvantage which might get hacked anytime possible.
Now coming back to ethereum, ethereum aims in removing third-party servers and making the steps to provide full authority to its particular users. That is, you take full ownership of your content in that particular application. Ethereum would provide control of data to its users and no one can control it. Allowing only the user to make changes.
“The sort of big memetic contribution that Satoshi made is the fact that he is treated cryptographic protocols as being economic protocols, where the economics is not just an afterthought, the incentives are a fundamental building layer of the entire system” Vitalik Buterin.
Ethers!
Likewise bitcoins, ethereum has ethers that can be stored securely in ethereum wallets. Ethereum wallets have many options like desktop wallets, mobile wallets and lots more.
Here is the best cryptocurrency wallet for you according to your needs.
And also, be careful with private keys. In losing which has no recovery and this also means losing the ether you earned forever!
Miners have to solve complex mathematical puzzles to make each block of transactions which includes hash function. Once the miner guesses the correct hash, the block will be mined and notifies other miners who are working on it. In return, they are awarded ethers. Actually they reward their miners with POF i.e, Proof of work method.
So what is proof of work here means?
Proof of work here refers to the miner who has completed the complex mathematical puzzle and notifying others known as ethash Solving these are not exactly an easy task to work with. It depends on your computational power. (i.e,) The faster or slower you work, the difficulty level keeps changing.
A miner might take around 12-15 seconds to verify a block. To gain ethers, there are no actual steps but purely based on luck. That is, guessing the correct hash value in a specific period of time among many competitions.
To put ethereum in simple words, An ethereum is an open-source platform to build decentralized applications and also mine ethers by solving difficult complex mathematical problems.
Last but definitely not the least thing is a fact that will definitely shock you. This are the numbers that I found while writing the article.
Ethereum has given ROI of 7,103.64%, whereas bitcoin has given ROI of 5,883.96% to its early investors.So what are you thinking? Go and invest in ethereum right now. In addition, check other altcoins too
