When it comes to cryptocurrency, there is a lot of confusion surrounding the terms Ethereum and ether. So, what exactly is Ethereum, and what is ether? Is Ethereum the same as Bitcoin? Let’s take a closer look.
Ethereum 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 enables developers to build decentralized applications.
In other words, developers can create their own blockchain applications on the Ethereum network.
Ether is the native cryptocurrency of the Ethereum network. Ether is used to pay for transaction fees and computational services on the Ethereum network.
So, to recap: Ethereum is a decentralized platform that runs smart contracts, and ether is the cryptocurrency used to pay for transaction fees and computational services on the Ethereum network.
Now that we’ve cleared up the difference between Ethereum and ether, let’s take a closer look at each one.
Ethereum was first proposed in 2013 by Vitalik Buterin, a Russian-Canadian programmer. Buterin had been involved in the development of Bitcoin prior to proposing Ethereum.
NOTE: WARNING: It is important to remember that Ethereum and Ether are not the same thing. Ethereum is a decentralized platform that runs smart contracts, while Ether (ETH) is the native cryptocurrency used on the Ethereum platform. Confusing the two can lead to serious financial losses.
He realized that Bitcoin needed a scripting language for application development. Thus, Ethereum was born.
Ethereum went live on July 30, 2015 with 72 million ether pre-mined for its crowd sale. The Ethereum crowd sale raised $18 million, making it the most successful crowdfunding campaign in history at that time.
Since its launch, Ethereum has grown exponentially. It is now the second largest cryptocurrency by market capitalization, behind only Bitcoin.
And there are currently over 25 million unique addresses on the Ethereum network.
ether is the native cryptocurrency of the Ethereum network. Transactions on the Ethereum network are verified by nodes through consensus algorithms known as Proof of Work (PoW) and Proof of Stake (PoS).
These consensus algorithms require miners to expend computational resources in order to verify transactions and add new blocks to the blockchain. In return for their efforts, miners are rewarded with ether.
So, there you have it! That’s a brief overview of Ethereum and ether!.
8 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. Ethereum is built on a blockchain, similar to the Bitcoin blockchain. However, the Ethereum blockchain is more versatile than the Bitcoin blockchain because it can run smart contracts.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ether is the fuel for running these applications, and is used to pay for transaction fees and computational services on the Ethereum network. So, is Etherlite related to Ethereum?
When it comes to cryptocurrency, ether and Ethereum are often used interchangeably. However, they are not the same thing. Ether is the cryptocurrency used within the Ethereum network.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. EtherLite is a decentralized platform that uses smart contracts to run Dapps: Decentralized Applications. These Dapps can be used 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 middleman or counterparty risk.
Azure, the Microsoft cloud computing platform, is based on the Ethereum blockchain. The Ethereum blockchain is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Microsoft is using the Ethereum blockchain as a foundation for its Azure cloud platform.
Quorum is an Ethereum-based distributed ledger protocol with enhanced privacy features developed by J.P. Morgan. The protocol is designed to add an extra layer of security and privacy to Ethereum transactions by allowing nodes on the network to remain anonymous and only sharing transaction data with those they choose to.
Wyre is a decentralized platform that enables anyone to send or receive payments in any currency, anywhere, anytime. Wyre is built on Ethereum, the world’s most popular blockchain. Wyre is the first and only platform that allows you to hold, convert, and transact in any currency, anywhere, anytime.
Quorum is a permissioned blockchain platform that is based on Ethereum. It is designed to meet the needs of enterprises that require high levels of security, privacy, and performance. Quorum is developed by JPMorgan Chase and ConsenSys.
