ETH or Ethereum is a form of digital currency or cryptocurrency that is somewhat similar to Bitcoin. ETH is the second-largest cryptocurrency in 2021 by market capitalization just behind Bitcoin. The Ethereum blockchain’s main token is the cryptocurrency ETH which is also the currency of Ethereum apps.
Evidently, ETH allows decentralized apps to be written and run without having the risk of downtime, fraud, control, or third-party interference.
ETH essentially comes with its own blockchain-based programming language, that allows developers to create and execute distributed applications.
Therefore, to sum it up all, ETH is primarily used for two purposes:
- It is extensively exchanged as a digital currency or cryptocurrency on various applications
- It can also be used to operate or run applications on Ethereum’s network
Features of Ethereum
ETH transactions are completely safe and secured by tested blockchain technology which thus safeguards wallets and transactions.
- Smart Contracts:
A smart contract is a computer program that allows two parties to trade any valued item. It might be cash, stocks, real estate, or any other digital item that you desire to trade. A smart contract is basically a contract made up of the parties’ mutually agreed upon terms and conditions.
All these contracts can be created by any individual on the Ethereum network.
- No intermediate or centralized control:
Another important feature of ETH is that it can be transmitted without using a third-party service such as a Bank or any other government body. In addition to that, ETH is a decentralized and worldwide currency. No firm and bank have the authority over ETH and they cannot alter the terms and conditions.
- Innovative and Large Community:
Ethereum boasts the world’s largest development community. As a result, ETH has a significant edge over competing protocols.
These cryptocurrencies based on Blockchain are still young technologies, but having such a huge community gives a major advantage. Moreover, ETH is more likely to be the first project to discover product-market fit, which will result in widespread adoption
ETH is unquestionably one of the most liquid assets, thanks to the international emergence of trading platforms, exchanges, and online brokerages. A user may rapidly convert ETH for cash or valuables at extremely low rates.
Difference between Ethereum and Bitcoin
|ETH was released on 30 July 2015
|Bitcoin was released on 9 Jan 2008
|The total coin supply in the case of ETH is unlimited
|The total coin supply in the case of Bitcoin is 21 Million
|Used as Smart contracts as well as Cryptocurrency
|Used only as a cryptocurrency
|ETH is a ledger technology that can be used by businesses to build new programs
|Bitcoin is simply just a cryptocurrency
|Better at developing smart contracts
|Better peer to peer system
|ETH is faster in terms of block-time
|Bitcoin is comparatively slower in terms of block-time
In conclusion, ETH is clearly fulfilling a huge need. ETH is aimed to make decentralized finance with the major key component of the upcoming future internet.
Moreover, ETH is still in the process of changing how it works and over the following several years, it is very likely that the network will progressively expand.