What is Ethereum? Difference in Ethereum vs Bitcoin

What is Ethereum

There are many blockchain projects running in crypto industry. But Ethereum comes first in Smart contracts project launch in early days of struggle. Today Ethereum is biggest project in crypto world, comes after bitcoin in market cap.

What is Ethereum?

Ethereum is a blockchain project which help user to create decentralized application (Dapps or Smart contracts) for world. It’s programming language is called Solidity, and it is used to create applications.

Every project created on Ethereum blockchain uses it’s security from hackers. Transaction process of projects are done on Ethereum chain, because Ethereum uses Proof of Work(POW) system just like Bitcoin. It can process only 13 transaction per second(TPS), this cause network congestion and high transaction fees (Gas fee).

(Fun fact: In 2017, A Gaming project name Cryptokittes alone slowed down Ethereum transaction.)

Ethereum’s Founder

Ethereum was Founded in July 2015 by small group of crypto Genius.
*Vitalik Buterin, who came with ethereum concept and today he is CEO.
*Joe Lubin, founder of Consensys.
*Charles Hoskinson, founder of Cardano (Left in 2017 for some person problems with Vitalik, And started his own Blockchain project.)
*My Favourite Gavin Wood, Father of Solidity Programming and Founder of Polkadot Project.(He also started his project back in 2019)

Ethereum 2.0

After permission of all validator on Ethereum chain, Poof of Work(POW) is shifting towards Proof of Stake(POS) system. The update of EIP 1559 was Role out in July 2021, and was successful. It was major change in Ethereum chain for shifting to POS.

The Final Update of London hard fork will finish on December 2021. This final update will increase Ethereum transaction limit and Will completely Move to Proof of Stake system.

What is Ethereum mining?

All the project using Proof of Work system has same way of mining. Like Bitcoin mining, Ethereum mining is also same.

Ethereum miner’s solve cryptographic puzzle to create block for chain. This process of solving puzzle is called as Mining. After the puzzle is solved a new block is created and added to chain. In every block that was created has information about all the transaction happened in Ethereum chain. After every 15 seconds a new block is created in Ethereum chain.

Ethereum Vs Bitcoin

Proof of Work(POW) can be used in different ways. Bitcoin is payment system and has supply limit of 21M, where as Ethereum is platform used for creating more decentralized project by using Ethereum chain security.

  • Bitcoin is use for Store of value.
  • Ethereum is use for creating application for real world usage.
  • Bitcoin is used for peer to peer payment without any middle man.
  • Ethereum user, use platform for innovation.

In simple terms

If Bitcoin is internet of crypto world. Then Ethereum is a Play store, in which you can find all useful applications. There are some projects just like Ethereum.

Ether define

Like Bitcoin blockchain which has it’s own currency name BTC. Ethereum chain has a token or currency name Ether(ETH). Ether is native currency of Ethereum chain. Ether is used as transaction payment fee in it’s chain. If you want to deploy a project in Ethereum chain, the ether is used for charge to add project in chain.

Ether and Ethereum are different in ways of use. Ethereum is a chain that creates block and save all transaction in it. Ether is currency that is used for payments and transaction fee for every activity done on Ethereum chain.

Now, is Ethereum a good investment?

If you are thinking about investment, you should research about Ethereum and understand how it works. Because it’s not about your investment, it’s about your patience and trust in investment. Do proper study about market of crypto, before investing in it.

Then, Should I buy Ethereum?

You should wait for Ethereum London hard fork to complete. If update successfully role out, that’s Great. If not, then you will be safe.