Cryptocurrency has garnered a lot of attention over the years and Bitcoin dominated for a long time. However, it isn’t the only contender on the scene. Ethereum is another type of cryptocurrency that is gaining attention because of what it features and how it can be used.
Ethereum isn’t just a type of digital money—it’s a blockchain based platform that has many aspects. It uses a currency called ‘ether’ for peer-to-peer contracts, which are backed by the Ethereum Virtual Machine.
These smart contracts will use blockchain stored applications when people want to negotiate and facilitate a contract. The contracts are useful because the blockchain creates a decentralized method of verifying and enforcing said contracts. The decentralized feature makes it very hard to defraud or censor users. These smart contracts are designed to provide users with better security and lower associated costs of traditional contracts.
A smart contract application is powered by Ethereum’s blockchain-based cryptocurrency, and they are held in the Ethereum wallet that lets you create and use these smart contracts.
When you use ethereum, you can create digital coins to act like virtual assets, be it shares, proof of ownership or membership, and more. These contracts can be used with any wallet, but they can also be used for exchanges that use standard coin APIs.
You can do this by copying the code on Ethereum’s website and then use those tokens for a variety of uses. These include representing shares, fundraising, and even be used as a form of voting. You have the option of having a fixed amount of tokens that are being circulated, or have a fluctuating amount that meet rules that have been set.
When you are using ether for funding, you don’t need to turn to sites like Kickstarter to help raise funds for your greatest business venture or product idea. You can just create a contract and ask for donations from the Ethereum community. The money that you raise this way will be held until you’ve met your goal, or the time frame has ended.
If you aren’t able to meet your goals or you’re project isn’t successful, the donations will be returned to the contributor. By bypassing the traditional crowd funding sites, that third party is removed, as are their fees and rules, which can make reaching your goal that much easier.
There are smaller details that separate Ethereum and Bitcoin. For example, Bitcoin has an average block time of 10 minutes, whereas Ethereum aims for 12 seconds. Though you may not think that 2 seconds is a lot, but that faster speed means faster confirmation. We should also note that there are some orphaned blocks as well.
Another important (and notable) difference is the monestary supply. Over two-thirds of the available bitcoins have been mined and it is those early miners that have them. Ethereum raised the launch capital with presale only half of their coins have been mined in the 5 years it’s been around—which means there are still plenty to find.
We want to compare one with the other, but the truth is, these are quite different types of cryptocurrency and they have different applications. Bitcoin has been deemed as more stable, but Ethereum is able to do more.