Ethereum is a digital asset and a blockchain platform with a smart contract functionality. It enables developers to create decentralized applications and run smart contracts.
Ethereum is the second-largest cryptocurrency by market capitalization, after Bitcoin.
Bitcoin is often referred to as digital gold, while Ethereum is called digital oil. Both are valuable assets in their own right, but they have different use cases.
NOTE: Ethereum is a cryptocurrency, not a type of cash. It is important to remember that, unlike physical currency such as the US Dollar or Euro, Ethereum does not exist in physical form and cannot be used to make purchases directly from merchants. Ethereum must be exchanged for other cryptocurrencies or fiat currency in order to make purchases or transactions with merchants. As such, it is important to understand the risks associated with cryptocurrency investments and to only invest money you can afford to lose.
Bitcoin is mostly used as a store of value or investment, while Ethereum is used for its smart contract functionality.
Ethereum is not a cash system like PayPal or Venmo. You can’t use it to pay for goods and services like you would with fiat currency.
However, you can use Ethereum to buy other cryptocurrencies, which can then be used to pay for goods and services.
7 Related Question Answers Found
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.
When most people think of cryptocurrency, they think of Bitcoin. However, there are many other types of cryptocurrency, and one of the most popular is Ethereum. So, what is Ethereum?
Yes, Ethereum is a real currency. It is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum is used as a digital currency, but it is also used to run decentralized applications (dapps) and smart contracts.
The short answer is yes, Ethereum is a commodity. It is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum is unique in that it allows developers to create their own decentralized applications (dApps).
Bitcoin, the first and most well-known cryptocurrency, has captured the public’s imagination and remains the dominant coin in the digital currency space. But Ethereum, the second-largest cryptocurrency by market capitalization, is gaining ground rapidly. Launched in 2015, Ethereum differs from Bitcoin in several key ways.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.
Decentralized finance—often called “DeFi”—refers to the shift from traditional, centralized financial systems to peer-to-peer finance enabled by decentralized technologies built on the Ethereum blockchain. From lending and borrowing platforms to stablecoins and tokenized BTC, the DeFi ecosystem has launched an expansive network of integrated protocols that are changing the way we interact with financial services. By deploying immutable smart contracts on Ethereum, DeFi developers can launch financial protocols and platforms that run exactly as programmed and that are available to anyone with an Internet connection.
