Should You Buy Ethereum?
Is Ethereum the same as Bitcoin? Well, yes and no. The two have some similarities like both are built using public networking technology – known as a blockchain – but this is where the resemblance between them ends. Bitcoin offers a single application, a peer-to-peer electronic currency system that allows online payments; in other words, it is a currency in its purest form. While Bitcoin uses blockchain technology to identify holders of Bitcoins, Ethereum uses a blockchain as a platform to run almost any decentralized application. Bloomberg described it as “software that can be used by everyone, but is protected against counterfeiting.” Thus, the possibilities are truly limitless!
Who invented Ethereum?
Ethereum was created by Vitalik Buterin, a cryptocurrency programmer who previously worked at Bitcoin in 2013. An online crowd sale, held in 2014, was an essential part of the funding for the new platform. The system was launched on July 30, 2015, populated with 11.5 million coins ready for pre-sale.
How does Ethereum work?
In the Ethereum blockchain, instead of the “mining” used by Bitcoin, users are working to win “Ether,” a type of cryptocurrency that powers a wider network. In addition to the fact that this digital currency is tradable, Ether is also used by developers to make payments for services within the Ethereum network.
What is Blockchain technology?
A blockchain is a public registry that keeps track of all transactions that have ever been made in a particular network. Blocks are constantly added in chronological order when they are “completed.” Each computer connected to the specific network (for example, Ethereum or Bitcoin) receives a copy of the block, which is automatically downloaded upon entering the network.
The blockchain allows more people to write “entries,” and a community of users can control how the recording of information will be modified and updated. It’s a kind of Wikipedia, in this sense. Each entry is uploaded and then edited; no one has control of the information contained in it.
Regarding the cryptocurrency of the Ethereum system, Ether, the block works like a database that keeps track of all the initiators and their transactions operated in the Ethereum network.
Where can you use Ether?
Ether is increasingly used for payments for certain goods and services online within the Ethereum network.
Why is the price of Ether rising so fast?
What is the cause of this rapid upward trend? The answer is simple and complicated alike, closely related to increasing investor interest in this cryptocurrency.
As the public becomes more and more informed about cryptocurrencies like Ether and Bitcoin, the higher the interest they generate. The case of Ether is even more interesting than that because the explosive growth it recorded occurred because investors noticed the resemblance to Bitcoin, and they wanted to take advantage of low prices.
