What is Ethereum and how is it better than Bitcoin in 2024?
If you are watching Tech news, you must have come across Ethereum; the question arises: What is this Ethereum? And how has it gained so much fame in just a few years?
If you talk about Ethereum, it is a rising star in the world of Crypto Currency. It has achieved its position very soon; if we talk about it now, it has got second place in the Crypto Currency List.
After its launch in 2015, Ether (Ethereum’s currency) has increased by more than 6,800 percent if we talk about the figures till 2017. Now the price of 1 Ether is around $480. After Bitcoin, if any CryptoCurrency has gained so much popularity, then it is only Ethereum.
So today, you should also be given complete information about Ethereum so that you already know about it so that it will be easy for you to understand and buy it. Then without delay, let us know what it is this Ethereum and how it is different from Bitcoin.
What is Ethereum?
Ethereum, also known as Ether, is the third most valuable digital money after Bitcoin and whose market value is in second place now. The technology on which it works is called Ethereum Blockchain.
What is Ethereum?
It was first introduced to the world in 2013 by a 19 -year-old Bitcoin programmer named Vitalik Buterin.
This CryptoCurrency has taken its popularity to a very high level in a short time. If we talk about its current valuation, it will be about $46 billion (£34bn), which is about $ 480 per coin. This price keeps on going up and down.
Buterin has improved Ethereum so much that it is much better than Bitcoin. Like Bitcoin, it is a Decentralized Payment Network with Cryptographic Currency, which we can send to any place in the world with the help of the Internet, and to do this, we will not have to depend on any bank or third party.
These Coded Transactions are stored on a Decentralized ledger, also called Blockchain, and are visible to all who live in the network.
Who created Ethereum?
As we know, the name of Bitcoin’s creator is Satoshi Nakamoto, an unknown person about whom no one has the correct information.
But the thing is different in Ethereum; the name of its father is Vitalik Buterin, who is a resident of Canada and who was born in Russia. He published this idea in 2013—_ It took two years to set up completely.
Buterin is a very bright student interested in mathematical science and won the Bronze Medal in the International Olympiad in Informatics in 2012.
He received the Thiel Fellowship worth $100,000 in 2014, after which he dropped out from the University of Waterloo. Buterin and Canadian entrepreneur Joseph Lubin started Ethereum Switzerland GmbH after a gap of one year.
Is Ethereum different from Bitcoin?
Because it is the second-biggest cryptocurrency after Bitcoin, Ethereum has always been compared with Bitcoin. But it has been seen that Ethereum is considered better than Bitcoin in many ways. So let’s know about it.
The work of both is almost the same, but there is some difference between the two.
Shortening of Block Times: It takes roughly 15 seconds to mine blocks in Ethereum, whereas in Bitcoin, they are at the rate of 10 minutes. By happening quickly, Blockchain takes significantly less time to confirm transaction data, which can lead to maximum transactions.
- Having a more Sophisticated Fee Structure – Transaction fees in Ethereum are based on storage needs and network usage. Bitcoin transactions are based on block size and keep competing with each other.
- More Sophisticated Mining – Bitcoin mining requires ASICs (Application – Specific Integrated Circuits), which require a large amount of capital investment to mine. At the same time, the algorithm of Ethereum’s mining has been designed keeping the ASIC -resistance in mind so that mining can be efficiently decentralized.
- Absence of more Transaction Fees – Transaction Fees are less in Ethereum than in Bitcoin.
- Use of more and more technology – In Ethereum, along with currency, other third-party applications are also allowed to run in the network. In Bitcoin, the only currency is allowed to run in the network.
- More Profit for Miners – Miners earn more profit in Ethereum than in Bitcoin.
How is the price of Ethereum affected?
Since Ethereum was launched, its value has been increasing slowly, while the price of bitcoin has increased very quickly.
There was a significant decrease in the value of Ethereum in the middle because 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 suitable investment in Ethereum, due to which its value has increased significantly.
Ethereum puts more focus on “smart contracts.”
Now the question arises what these Smart Contracts are? This contract is written in code uploaded by the creator ( s) in the Blockchain. If any contracts are executed, then all the nodes in the network run them, which are then uploaded to the Blockchain, and in the same way, they are stored in the Public Ledger, which is theoretically tamper-proof. There are proofs.
Small contracts are structured like If – then statements; when some conditions are fulfilled, then that program completes that contract.
Because all the computers in the network are tracking all the transactions happening in the digital ledger, it is impossible to tamper or tamper with this thing. If someone has tampered with it, everyone will know about it.
Ethereum Team
Vitalik Buterin (CEO) – With the help of Bitcoin in 2011, Vitalik discovered cryptocurrencies and blockchain technologies. He looked at Bitcoin Magazine in 2012 to understand Bitcoin.
After receiving the Theil Fellowship in 2014, he dropped out of the University of Waterloo to work full-time on Ethereum. Vitalik understood what blockchain technology had to offer in the future, and in 2013 he invented Ethereum.
Gavin Wood (CTO) – Gavin met Vitalik in 2014 through a mutual friend. He created the smart contract language Solidity. He also wrote the first yellow paper on the Ethereum blockchain for the Ethereum Virtual Machine (EVM).
Jeffery Wilcke: After Inception, he is looking after implementing Go programming on Ethereum.
Ming Chan: He is working as the executive director of Ethereum and oversees the regulatory and legal matters of the Ethereum blockchain.
How many people use Ethereum?
Today there are more than 12 million cryptocurrency wallets that hold Ether. Their number is also increasing gradually.
Should You Invest in Ethereum?
If I talk about the value of Ethereum, then in a short time, its value has increased a lot and continues to increase. I want to tell you that there is no reality of the value of Cryptocurrencies, and they keep fluctuating.
That’s why you must have heard about many such people who have become millionaires in a short time. All these things are the gift of Ethereum. That’s why you invest as much as you can afford.
Wazirx is the best platform to invest in Ethereum. I have also invested in many cryptocurrencies in this.
What is the future of Ethereum?
Since the time Ethereum originated, its value of Ethereum has been increasing continuously; investors believe its growth will continue in the coming years. So if any investor wants to invest in it, he can invest without hesitation.
This is also because many big companies like JP Morgan Chase and Microsoft have invested their money.
But if you do not have the money to invest, then do not invest in it by taking loans; it can prove dangerous later. Invest as much as you can. It would be appropriate to do good research before investing in the rest. Only time will tell what the future holds for Ethereum. Who knows, you can become a big millionaire in the future.
What did you learn today?
I hope I have given you complete information about Ethereum and that you have understood Ethereum. Please also share this information with your neighbors, relatives, and friends so that there will be awareness among us, and it will benefit everyone.
I need your cooperation to convey more new information to you.
It has always been my endeavor to help my readers from all sides; if you have any kind of doubt, then you can feel free to ask me. I will try to solve those Doubts.
