If you are watching tech news then you must have encountered Ethereum, then the matter arises that what is an Ethereum? And how has it gained so much fame in just a few years?If we talk about Ethereum, then it is a rising star of the world of Crypto Currency. It has achieved its position very soon and as of now, it has got the second position in the Crypto Currency List.
After its launch in 2015, the value of 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 almost near $480. After Bitcoin, if any Cryptocurrency has gained so much popularity then it is only Ethereum.
So that’s why today I thought that why should not all of you be given complete information about Ethereum so that you also already know about it, which will make it easier for you to understand about it and buy it. Then without delay, let’s know what is an Ethereum and how is it different from Bitcoin.
What is Ethereum
Ethereum, also called Ether, is the third most valuable digital money after Bitcoin and whose market value is in second place right now. The technology on which it works is called Ethereum-Blockchain.
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 very high in a very short time. If we talk about its current valuation, then it will be around $46 billion (£34bn), which is about $480 per coin. This price keeps going up and down.
Buterin has improved Ethereum in such a way that it is much better than Bitcoin. Like Bitcoin, it is a Decentralized Payment Network which has its own Cryptographic Currency that we can send to any place in the world with the help of Internet and we will not have to depend on any bank or third party to do this.
These Coded Transactions are stored on Decentralised Ledger which is also called Blockchain and they are visible to all who live in the network.
Who created Ethereum?
As we know that the name of the creator of Bitcoin is Satoshi Nakamoto, which is an unknown person, about whom no one has the right 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. And which took two years to set up completely.
Buterin is a very meritorious student who has a great interest in mathematics and won the Bronze Medal at the International Olympiad in Informatics in 2012.
He got the Thiel Fellowship which was worth $100,000 in 2014, after which he dropped out from the University of Waterloo. After a gap of one year, Buterin and Canadian entrepreneur Joseph Lubin started Ethereum Switzerland GmbH.
How is Ethereum different from Bitcoin?
Since it is the second-biggest cryptocurrency after Bitcoin, therefore 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 – Mining blocks in Ethereum takes roughly 15 seconds, whereas in Bitcoin’s it happens at the rate of 10-minutes. Due to the fast, it takes very less time for the Blockchain to confirm the transaction data, which can lead to maximum number of transactions.
- Having More Sophisticated Fee Structure- Transaction fees in Ethereum are based on storage needs and network usage. Whereas Bitcoin transactions are based on block size and keep competing with each other.
- Having More Sophisticated Mining- The mining of Bitcoin requires ASICs (Application-Specific Integrated Circuits), which requires a large amount of capital investment to mine. Wherein Ethereum’s mining algorithm has been designed keeping in mind the ASIC-resistance, so that mining can be decentralized easily.
- No more Transaction Fees- Transaction Fees are less in Ethereum than in Bitcoin.
- Use of more and more technology- Along with currency in Ethereum, other third party applications are also allowed to run in the network, whereas in Bitcoin only currency is allowed to run in the network.
- More Profit for Miners- Miners earn more profit in Ethereum than in Bitcoin.
How does the price of Ethereum affect?
Ever since Ethereum was launched, its value has been increasing slowly, while the price of bitcoin has increased very quickly.
In between, the value of Ethereum had decreased significantly 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 good investments in Ethereum, due to which its value has increased significantly.
Ethereum puts more focus on “smart contracts”
Now the matter arises that what are these Smart Contracts? So I want to tell you that this contract is written in the code, which the creator(s) upload in the blockchain. If ever a contract is executed, then all the nodes which are present in the network run them, which are then uploaded to the Blockchain, and likewise they are stored in the Public Ledger which theoretically tamper- There are proofs.
Small contracts are structured like if-then statements, when certain conditions are fulfilled then that program fulfills that contract.
Becauseall the computers that are located in the network are tracking all the transactions that are happening in the digital ledger, so it is not possible to tamper or tamper with this thing. If someone has tampered with it, then everyone will know about it.
How many people use ethereum?
Today there are more than 12 million cryptocurrency wallets which are holding ether. Their number is also gradually increasing.
Should you invest in Ethereum?
If I talk about the value of Ethereum, then in a very short time their value has increased a lot and is increasing. One thing I want to tell you all that there is no reality of the value of Cryptocurrencies and they fluctuate.
That’s why you must have heard about many such people that how they have become millionaires in a very short time. All these things are the result of Ethereum itself. So invest only as much as you are able to give.
The best platform to invest in Ethereum is Wazirx. Believe me, I have also invested in many cryptocurrencies in this.
What is the Future of Ethereum?
The value of Ethereum has been increasing continuously since the time Ethereum originated, investors believe that it will continue to grow like this in the years to come. So if any investor wants to invest in this, then he can invest without any hesitation.
This is also because many big companies such as JP Morgan Chase and Microsoft have invested their money in it.
But I believe that if you do not have the money to invest, then do not invest in it by taking loans, it can prove to be dangerous in the future. Invest as much as you can afford. It would be advisable to do good research before investing the rest. Only time will tell what the future of Ethereum is going to be in the future. Do you know that you can also become a big millionaire in the future.
what did you learn today
I hope you have liked my article on What is an ethereum and it’s future in 2022. It has always been my endeavor to provide complete information about the future of crypto currency to the readers, so that they do not have to search any other sites or internet in the context of that article.
This will also save their time and they will also get all the information in one place. If you have any doubts about this article or you want that there should be some improvement in it, then you can write comments below for this.