Ethereum is one of the biggest digital assets besides bitcoin. Ethereum has its own cryptocurrency called Ether (ETH). Ethereum is the name of a type of digital asset that also moves on top of peer-to-peer technology like Bitcoin. Ethereum’s decentralized platform was created specifically to be used to store, deploy and define smart contracts.
In simple words, ETH is the world’s leading programmable blockchain. Through the Ethereum platform, developers can create various forms of new markets, store important data such as cooperation agreements, debts, company deeds, etc., and send money wherever and whenever they want without having to rely on third parties.
Transactions with ETH can also be more efficient, because they remove intermediaries from the system in use. Some experts say ETH aims to become the world’s computer.
A Glimpse at the History of Ethereum
Is a young computer programmer, Vitalik Buterin, who launched ETH in 2015. At the age of 17, in 2012 he was introduced to Bitcoin by his father. Vitalik’s interest in Bitcoin, made him a writer for Bitcoin Magazine. From that time, Vitalik proposed an improvised idea on the Bitcoin platform, but it didn’t materialize, which led him to decide to create his own cryptocurrency.
The Moscow-born man who lives in Canada finally dropped out of college. He left the University of Waterloo and replaced his activities by traveling the world to visit almost every great man working on Bitcoin.
The man who was included in the Fortune’s 40 under 40 list finally created a blockchain technology platform, namely Ethereum. Even though its value is not yet equivalent to Bitcoin, when viewed from a market capitalization perspective, currently Ethereum is second only to Bitcoin, where the price for 1 ETH as of 18 September 2020 is IDR 5,725,000.
Ethereum VS Bitcoin: What’s the Difference ?
Ethereum and Bitcoin, apart from being both crypto assets, also have using a decentralized blockchain technology network. Both can also be produced through the mining process. While there are many technical differences between Bitcoin and Ethereum, the main difference is their purpose and function.
ETH and BTC are very different for the amount. The crypto assets created by Satoshi Nakamoto are limited to only 21 million tokens, while ETH does not have a certain amount limit.
As for its function, BTC offers a peer-to-peer electronic money system for Bitcoin payments or transfers. Whereas ETH has a focus on its blockchain to run decentralized programs, including Ethereum payments or transfers. In fact, transfers using ETH are much faster than BTC.
The transaction fees for using BTC and ETH are also different. BTC has a fixed and undifferentiated transaction fee. And ETH, the transaction fee depends on the computing power of each client so the fee is not fixed.
In its function, BTC is often used as a tool to store a list of balances and transactions on the blockchain, while the Ethereum blockchain has a design to store various data that can be used by computer programs (decentralized applications or dapps) running on the Ethereum blockchain.
Developers all around the world can build and run decentralized applications on the Ethereum blockchain. So, ETH is also useful for improving the financial industry as well as a place to store personal information.
In the world, there are lots of digital currencies, and ETH can be one of your choices. Apart from mining, ETH can also be obtained in the easiest way, which is trading on your favorite platform. By using an exchange platform or crypto asset exchange, you can buy and sell ETH, especially if you already have another digital currency, such as BTC, then you can buy ETH right away.