“Bitcoin brought us the blockchain message, digital scarcity, and decentralized security. Ethereum brings us smart contracts, digital assets, and the possibility of disrupting entire industries. The possibility of using the blockchain for something more than money transfer….”

Statistics

Coin Name: Ethereum
Token: ETH
Birth of project: 2015
Project Status: Strong
Circulating Supply: 97,866,135 ETH
Validation: Proof-of-Work

Official Links

Official website: https://www.ethereum.org/
Official Wallet: https://github.com/ethereum/mist/releases
Explorer: https://etherscan.io/
Other:

Introduction to Ethereum (ETH)

Bitcoin brought us the blockchain message, digital scarcity, and decentralized security. Ethereum brings us smart contracts, digital assets, and the possibility of disrupting entire industries. The possibility of using the blockchain for something more than money transfer.

The leap from Bitcoin, let’s call it a calculator, to Ethereum, let’s say a computer, was given by Vitalik Buterin, Ethereum’s creator. This decentralized computer is accessible to anyone in the world, and allows anyone to build applications there.

Smart contracts are conditional transactions, meaning, if I put a coin in a vending machine, I get a cookie. Of course, the complexity level of the conditions can increase a lot. Make some conditions depend on others, according to the goals that want to be achieved and the variables in stake, and the programming of these variables, is the beauty of Ethereum.

Ethereum has the capacity of making an unchangeable contract that anyone can see, and which terms are enforced automatically. The contract has, for example, the capacity to hold funds (tokens) and release them when the conditions are met. No third parties involved.

The creation of Ethereum came from the limitation that the Bitcoin blockchain had for this superior level of complexity in transmitting information. Bitcoin was conceived as a safe decentralized currency, but Vitalik Buterin wanted more.

In 2013 Ethereum was born, being formally introduced to the world in January 2014. Ethereum was moving beyond the currency aspect, from sending money between people, to sending information between programs. Any developer could write a program to run on Ethereum, the operating system that would allow other programs to run.

Ethereum’s blockchain network went live on July 2015, meaning dapps could start being built on it. These complex smart contracts are developed in an independent way of Ethereum, but they do need Ethereum’s blockchain to exist. Currently exist 1127 dapps, which can be seen here: https://www.stateofthedapps.com/

Ethereum is supporting hundreds of dapps and ICOs, digitizing physical assets, and putting together Buterin’s vision. No need to provide personal information, no need for lawyers, just to create a dapp. We have smart contracts for digital rights, for digital currency, for securities, for record keeping, you name it, all the sectors in our society are covered and will possibly be disrupted.

Programmable trust over the Internet is the revolution Ethereum is servicing. Scaling has been an issue for Ethereum, as the dApps require more than simple processes, and development on that sense is being made, namely Raiden, Sidechains and Sharding, so Ethereum is still a work in progress.

This is a brief introduction to Ethereum, but if you want to know more about the coin, what people are saying about it, technical details, jump right in any of the links we present below. They are well worth reading before investing!

10 Comments

  1. jaymish

    I have to admit that Ethereum is more confusing then bitcoin. I don’t fully understand bitcoin, but i definitely don’t understand Ethereum. What’s the difference between the two for example? They both use different technology but it’s blockchain? From the little I know about Ethereum I think it still has to rely on bitcoin for exchange. As I said still so confused!

    Reply
    • Coins

      Bitcoins intended and primary use is that of a decentralized currency. It’s best used for making purchases and other Financial transactions online. What makes it special is the blockchain technology, allowing for every transaction to be permanently recorded on a public ledger, that allows for no mistakes or disputes. The other thing thing that makes blockchain so special is that is isn’t ran by any person or company, it’s all ran by automated technology, where code is law.

      Ethereum was created as a way to do much more then simply make transactions. Within ethereum any individual can build apps to run atop of the blockchain. Allowing for the decentralized storage of personal information, the creation of smart contracts, along with so much more.

      Reply
    • Martins

      Bitcoin is just the beginner of all digital currency, it offered so much more than ordinary fiat currency would never dream of accomplishing. But bitcoin was quite difficult to acquire which led to the rising up of other cryptocurrency such as Ethereum. One thing that I know very much between the two coins is that Ethereum is cheaper than bitcoin to acquire.

      Reply
      • avsf

        It’s not that bitcoin was difficult to acquire (which is not difficult, just expensive these days), ethereum was created to serve a purpose different from bitcoin. Bitcoin is a currency, and ethereum is a platform for smart contracts, where decentralized apps can be built.

        Price is not relevant when talking about the different features from bitcoin and ethereum.

        Reply
  2. Martins

    Etherum was founded because of the complexity that comes with bitcoin as not everyone can afford to invest in bitcoin, at least this is my view on the emergence of the cryptocurrency – Etherum. It made provisions for more when it comes to dealing with its blockchain. Now, the only problem that is yet to be addressed by Etherum blockchain is the number of transactions it processes on daily basis. A lot of users are left stranded because of few transactions processing in a day which I believe is only 50.

    Reply
    • avsf

      Again @Martins, Ethereum was not created because Bitcoin was too expensive. The problem with Ethereum, Bitcoin and all other cryptos is that they are new, industry changing technologies, that face the obstacles any new tech faces. Anyone remember when Amazon begun? It wasn’t simple was it?

      Reply
  3. Treathyl Fox

    Ethereum is not something for a newbie cryptocurrency investor like me. But I do like the idea of “no need for lawyers”. LOL. Regards the Support Links for this discussion I reviewed the article “Beyond Bitcoin: Why Ethereum Could Change The World” published via Medium and the I think the section titled “Greater Uses” is fascinating.

    Reply
    • Coins

      Glad your enjoying the articles. While ethereum is somewhat made for developers, it is already being used to create a bunch of very user-friendly dapps (decentralized apps).

      Reply
    • Martins

      I believe that Ethereum would be a lot easier for you as a beginner to acquire, unlike bitcoin which happens to be very expensive for any new individual interested in cryptocurrency to be able to acquire. Check out the possibility of acquiring the two and you would discover that Ethereum would be more easy to get.

      Reply
      • avsf

        Right, you’re still going around the price @Martins. Don’t forget to see the market capitalization to see the true value of a coin. Let’s say the total distribution of bitcoin is 10, and each bitcoin costs $1.

        Now, if each ethereum cost $0.50 it’s certainly cheaper, but if total coin distribution is 100, that makes ether worth even less.

        Reply

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