Broadly, Ether is used for dual purposes. It is a digital currency exchange like other currencies in the world of cryptocurrency. It is traded as a digital exchange of currency. Ethereum is utilized to run applications. And Ethereum currency is greatly operated even to monetize work which means it is used to codify, decentralize, secure and trade just about anything. Let us know more about it.
Going little back in 2014, at the North American Bitcoin Conference, the inventor of Eth, Vitalik Buterin is responsible to announce it and let Ethereum receive a lot of attention. There is no doubt that it has been constantly compared with Bitcoin which was the first virtual currency. There are similarities between the two currencies but there are differences as well. And for any investor, it becomes essential to thoroughly understand and know both the similarities and differences between Bitcoin and Ethereum.
Bitcoin was introduced in 2009 and brought a novel idea to offer the promise of lower transaction fees than traditional online payment mechanisms. It is operated by a decentralized authority, unlike government-issued currencies. A point to notice is that such currencies (be it Bitcoin or Ethereum exchange currency or other) are not physical currencies. There is a technology of blockchain that powers it. This Blockchain is a public ledger of all transactions in a given system. It is constantly growing since it is executed. To simplify, the blockchain stands as a tamper-proof record of all transactions on the network, accessible to all participants. The technology of blockchain is being used to create applications which are beyond just supporting a digital currency.
Ethereum is the largest and most well-established, open-ended decentralized software platform that is again working on the basis of blockchain. It not only enables Smart Contracts but Distributed Applications (ĐApps) to be built and run without any fraud, downtime or interference from a third party. Ethereum is known as a platform but it is also a programming language running on a blockchain. And its purpose is to help developers to build and publish distributed applications. Investors can access all updates and information by using eth price chart.
Bitcoin Versus Ethereum
Both are powered by the principle of distributed ledgers and cryptography but both of them differ in many technical ways. Let’s discuss it with the help of an example. The programming language used by Ethereum is Turning complete whereas Bitcoin is in a stack-based language. And about the block time difference, Ethereum transaction is confirmed in seconds compared to minutes for Bitcoin.