What is Ethereum?

Ethereum: The Queen of Cryptocurrency

what is Ethereum

Bitcoin has ruled the world of cryptocurrency for a while now, and has often been referred to as the King of cryptocurrency. But now we have a contender! Drum roll please as I introduce you to the Queen of cryptocurrency, Ethereum.

While many cryptocurrency fanatics are focused on Bitcoin, Ethereum is fast growing and might just be the next best thing that has ever happened to the digital currency ecosystem. But before we go on showering praises on the currency, let’s talk about what it’s about and how it works?

The Ethereum Blockchain

You must have probably figured out by now that just like many other cryptocurrencies, Ethereum uses the blockchain technology for operation, but what is it exactly?

Ethereum is an open-source and decentralized programmable software platform that is blockchain based and cannot be altered or hacked. This alone sets it apart from other software programmes. Not just that, with Ethereum you can construct and carry out computer protocols known as smart contracts, and also build Distributed Autonomous Applications (DApps).

You might be thinking since Ethereum is a software it uses the same programming language as others, but that’s far from it. The blockchain has an in-built programming language known as Solidity which members of the network use in creating smart contracts and Distributed Autonomous Applications with ease.

The Ethereum Token; Ether

Ethereum has been referred to by many as programmable money, and to be called such it means it has to have a currency or token. This token is known as Ether.

You should take note that asides Ether, there are many other cryptocurrencies that operate on the Ethereum network, and just like Ether, they are also called tokens. This doesn’t mean they are the same. The difference is while Ether is the token used for trading on the network, other “tokens” refer to those that are Ethereum-based and are created on the network, for example Tronex.

What Makes Ethereum Stand out from other Cryptocurrencies?

By now you most likely have realised that Ethereum is more than just a blockchain that holds the Ether token and confirm the transactions that occur in the network. The Ethereum blockchain was built with developers in mind. Now any developer can create smart contracts and DApps easily.

Unlike Bitcoin and many other cryptocurrencies, Ethereum’s blockchain is not just designed to account for tokens, but also to run code. This is why other cryptocurrencies and tokens that are not Ether, traditional contracts, and even software can be created using the Ethereum blockchain.

Conclusion

The blockchain technology is in its early stages but already shows signs of disrupting many sectors of the global economy, and while many are more familiar with Bitcoin, Ethereum is beginning to take a stand in the digital world.

Ethereum is unlike any other cryptocurrency that is blockchain-based in the sense that it goes far beyond just accounting for coins. With Ethereum, developers can create and execute smart contract and also develop Distributed Autonomous Applications without the need for middlemen. That’s not all, on the network, other tokens can be created. This is taking digital currencies to the next level!

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