What is Ethereum? What is the difference between Ethereum and Bitcoin?

in cryptocurrency •  last year

Hey Guys,
I'm want to bring some light on common things

Bitcoin - A digital store of value, currency, with a fixed supply of 21M coins in total. There will never be more.

Ethereum - Blockchain technology (like Bitcoin) but with the ability to layer on apps on top which can execute “smart contracts” (code) to build decentralized applications. Ethereum will always have more ‘Ether’ mined every year, infinitely.

Created by math prodigy Vitalik Buterin, Ethereum is second only to Bitcoin in the hierarchy of cryptocurrencies. Like Bitcoin, Ethereum is a distributed public blockchain network. Although there are some significant technical differences between the two, the most important distinction to note is that Bitcoin and Ethereum differ substantially in purpose and capability.

Bitcoin offers one particular application of blockchain technology, a peer to peer electronic cash system that enables online Bitcoin payments. While the bitcoin blockchain is used to track ownership of digital currency (bitcoins), the Ethereum blockchain focuses on running the programming code of any decentralized application.

Before the creation of Ethereum, blockchain applications were designed to do a very limited set of operations. Bitcoin and other cryptocurrencies, for example, were developed exclusively to operate as peer-to-peer digital currencies.

Developers faced a problem. Either expand the set of functions offered by Bitcoin and other types of applications, which is very complicated and time-consuming, or develop a new blockchain application and an entirely new platform as well. Recognizing this predicament, Ethereum’s creator, Vitalik Buterin developed a new approach.

Ethereum’s core innovation, the Ethereum Virtual Machine (EVM) is a Turing complete software that runs on the Ethereum network. It enables anyone to run any program, regardless of the programming language given enough time and memory.

The Ethereum Virtual Machine makes the process of creating blockchain applications much easier and efficient than ever before. Instead of having to build an entirely original blockchain for each new application, Ethereum enables the development of potentially thousands of different applications all on one platform.

In February 2017, Ethereum organization announced the Enterprise Ethereum Alliance (EEA). It is aimed at developing enterprise-focused solutions with the open-source Ethereum as a basis but that are, in some cases, more privacy-oriented. Conversely, the idea is to create a kind of positive feedback loop that leads to improvements of the public blockchain protocol as well.

There are major Fortune 500 companies, Microsoft, Intel, JP Morgan, BP, Samsung to name a few, that are all currently exploring Ethereum.

Also, you can check EOS vs ETH HERE

Thanks, @trogdor for light :)


Best,

@belkins

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This post received a 1.4% upvote from @randowhale thanks to @belkins! For more information, click here!

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Thanks for source :)

Thank you for information. It's may help to understand bit more about it

Both BTC and ETH are amazing technologies and have first mover advantage going for them. They are both headed much higher, however see below for why Ethereum will hit $500 and surpass Bitcoin's marketcap:
https://steemit.com/bitcoin/@rmiseman/why-ethereum-will-hit-usd500-and-surpass-the-market-cap-of-bitcoin-in-2017

Great read, thanks for sharing the difference of ETH and BTC