Even though there are thousands of new cryptocurrencies out there in the market, Ethereum is by far the second largest. When you look at the market cap of Ethereum, it is flying over USD 366 billion and is rapidly increasing in popularity. In addition, Ethereum is often described as an open-source platform for developing smart contracts, which are scripts that function to automatically fulfil the terms of an assigned contract only when specific requirements are completed. You can read more about these and find out what Shiba inu and how much does a shiba inu cost .
For example, if you want to be paid for any service every month, you could set up a contract like this. With such a system is working, your payments would be sent to your bank account monthly until you decide to terminate your agreement with your clients. Just like this, there are various incredible features offered by the Ethereum crypto network. However, before getting into the details of Ethereum and its rise to fame, it’s essential to understand the basics of this cryptocurrency.
Why Ethereum Blockchain Is Special?
Ether is a cryptocurrency, which means it has to hold its own against the currencies of other countries and be used as a currency for trade. This contrasts with tokens built on a blockchain, which usually has no value and can only be used for payments within their platform. For Ethereum to succeed as an independent cryptocurrency, it needs to prove itself against other cryptocurrencies out there. In addition, it needs to show that it can affect peoples’ lives in meaningful ways and make them want to use it over another country’s currency.
Ethereum is different from Bitcoin and other cryptocurrencies in that it is not just a currency. Instead, it is an entire network. It has a name, just like the Bitcoin network, but it also contains many other features besides the currency itself. Ether is the currency on the Ethereum network, which was developed by the project Ethereum and started in 2013. There are four different currency versions (Ether, Ether Classic, and two other Dapps), but the majorly focused type of ether is Ethereum (ETH).
What Makes Ethereum Special?
Of course, the main feature of Ethereum is ether – its cryptocurrency. But many other things make it unique, things that explain how it rose to be so well known in such a short amount of time. A few such factors behind the increasing fame of Ethereum are
- Decentralized platform for smart contracts.
- Scripting language to develop secure programs.
- An open-source, public blockchain for secure and anonymous transactions.
- A virtual machine that executes scripts on the blockchain
The first advantage of Ethereum over other cryptocurrencies is its decentralized platform for smart contracts. This means that no centralized authority has control over the production of new blocks or who controls the maintenance of the network. Instead, these tasks are performed by thousands of miners worldwide who are connected through the internet.
Comparison Between Bitcoin And Ethereum Transactions
For transactions to be confirmed on the Bitcoin network, a miner has to successfully solve a challenge by cracking a mathematical equation. If he does not crack it, his transaction will remain unconfirmed and not be added to the blockchain. In this case, his transaction becomes an orphan block, which can never be added to the Bitcoin network. In contrast, Ethereum has a more advanced system of block creation, which allows almost instant transactions.
You don’t have to crack a mathematical equation to make any transaction using a platform designed under the Ethereum network. Instead, you write down some code, and it will act as an automatic executor of your smart contract’s terms when necessary. A unique scoring system will evaluate all proposed solutions and choose the highest score. This is called Proof of Work and explains why Ethereum can be used for computations without any risk of unconfirmed transactions. To find more detail in this regard.
Ethereum is a decentralized virtual machine (runtime) that holds blockchain code and facilitates the creation of new applications on its network. Ethereum has become extremely popular because it functions entirely differently from Bitcoin. It’s based on the concept of a smart contract, which can offer businesses or society in general or a more secure way to store data on the blockchain without relying on a centralized authority.