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Cryptocurrency Explained: What Is Ethereum?

The cryptocurrency that has bagged the second position in the world ranking is Ethereum. Ethereum is basically abbreviated as ETH. The white paper was published by Vitalik Buterin, the founder of Ethereum, in 2013. Vitalik is a cryptocurrency researcher and programmer. He was a part of Bitcoin magazine. it was initially launched on 30th July 2015.

 

What Is Ethereum?

Ethereum is an open source system, its design is public, it has its own blockchain. The next question that pops up is: what is the difference between bitcoin and Ethereum? Ethereum uses smart contract. A smart contract is a number of self-executable codes, representing regulations or rules which are implemented on the blockchain to supervise it. An example of a smart contract could be a will that comes with a condition that all the property has to be donated to an NGO after that person’s death.

 

Ethereum uses custom-build blockchain. These blockchains are strongly bonded to shared global infrastructure. This helps the user share data/value around, increases transparency and displays the ownership of the property.

 

Previously, Ethereum followed Proof of Work mechanism that uses ethash algorithm. On 8th may 2018, Ethereum network’s consensus protocol called Casper was released. Casper works on Proof of Stake where the miners are replaced by validators. Unlike what happens in Bitcoins, there are no rewards here the payment is decided by the network and doesn’t fluctuate.

 

It takes about 14 to 15 seconds to validate a block. Ethereum is capable of processing 15 transactions per second. The subunit for Ethereum is Wei, and the smallest fraction of bitcoins is 18 decimal. The total supply of bitcoin is 18 million.

 

What Is Ethereum Classic?

In 2016, as the DAO (Decentralized Autonomous Organization) collapsed, Ethereum was split into two separate blockchains. Ethereum was hard-forked. The parent was named as Ethereum Classic, and the child was named as Ethereum. So, we can say Ethereum is a hard fork of Ethereum Classic.

 

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
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Pooja Anoj is a cryptocurrency blogger who covers exciting crypto news stories and crypto guides for OWLT Market.

  1. Very helpful and Great information,
    we appreciate advice especially coming from a professional.
    Thanks again for providing great information about cryptocurrency technology & Ethereum. Keep up the great work!

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