In the last article we talked about bitcoin, what they are and what they are for. Here the link to read the article https://www.publish0x.com/cryptoearnings/discovering-the-crypto-bitcoin-xpjnoyv
Today we speak instead of what has been confirmed since 2015 the second most popular crypto: ETHEREUM
What is ethereum?
Ethereum is a digital platform that allows you to build a range of decentralized applications. These applications may include security programs, electoral systems and payment methods. Like bitcoin, ethereum also operates outside the mandate of central authorities, such as banks and governments. Instead, ethereum belongs to the cryptocurrency market, which is a market in the world of high volatility trading.
The idea behind ethereum was conceived by Vitalik Buterin. It is he who launched the first version of the platform in 2015, with the help of several co-founders. Since then, ethereum has become the second most important cryptocurrency and has favored the rise of new bitcoin rivals.
How Ethereum works?
Ethereum works through a blockchain, where all the operations carried out are stored in a public register. Each new block before registration must be validated by the other users participating in the platform.
The Ethereum network is characterized by a decentralized virtual computer, also known by the name of EVM (Ethereum Virtual Machine). To function, the network needs (real) computers kept constantly on, which transfer part of their computing power to the network.
In turn, computers need to acquire energy to perform their function. The "petrol" of the platform is represented by Ether (the digital currency of Ethereum), indispensable for executing smart contracts.
How much Ethereum is worth?
Ethereum is the second largest cryptocurrency by equity capitalization in the top 10 of the CoinMarketCap site, behind Bitcoin and ahead of Ripple.
Here is the annual trend of Ethereum, with the market cap values (in US dollars) reported in the historical report on the CoinMarketCap portal.
- January 1, 2016: 72 million
- January 1, 2017: 715 million
- January 1, 2018: 74.7 billion
- January 1, 2019: 14.6 billion
- January 1, 2020: 14.2 billion
The maximum price reached by Ethereum was $ 135.4 billion at the beginning of 2018. The equity capitalization of the Ether cryptocurrency grew dramatically in 2017, especially in the first 6 months.
In this period, it went from 700 million in the first days of January to 25 billion in late June, and then rose to 74 billion in early January. Ethereum would then double its capitalization in two weeks, reaching 135 billion on 13 January 2018.
What are the differences between Ethereum and Bitcoin?
While Ethereum has as main objective the functioning of Smart Contracts and the creation of decentralized apps, Bitcoin wants to be an alternative to classic money as we know it today and a store of value (the so-called digital gold). This is the fundamental difference between Ethereum on one side and Bitcoin on the other.
For the rest, both have their own blockchain and a digital currency (Ether for Ethereum). Both cryptocurrencies are the final product of the so-called mining, the extraction process carried out by the miners who thus obtain the Ether generators from the network. In this regard, it should be noted that the monetary policy followed by the two cryptocurrencies is different. The maximum availability of Bitcoin is 21 million units, Ethers instead are unlimited.
Another substantial difference lies in the structure. The blockchain behind Ethereum is fully programmable, and therefore more efficient than the Bitcoin blockchain.
