Launched in 2015 by founder and inventor Vitalik Buterin, Ethereum is the second biggest digital currency after Bitcoin. While the world often focuses on Bitcoin, Ethereum outshines Bitcoin and provides a blockchain which is rich in features and practical applications, Medium portal reported.
Blockchain background
Imagine blockchain to be like the digital DNA of a currency; each blockchain is unique. A blockchain can be easily tracked over the web and although there is never any physical imprint every transaction made is recorded and stored. By recording and storing all transactions in an online ledger, no part of the blockchain can be copied or counterfeited; it has to be consistently authentic; otherwise, the new part of the blockchain will be different to its original state and won’t be accepted by the rest of the blockchain.
How is Ethereum different from Bitcoin?
There’s quite the arms race going on between digital currencies, in particular, Ethereum and Bitcoin. Bitcoin is the most significant digital currency and has relatively few coins in actually in circulation. To put this into perspective, while there are around 21 mio Bitcoins there are around 92 mio Ethereum based coins.
Due to open source nature of ERC20 (Ethereum Request for Comment 20), it is possible for anyone to create a new blockchain or token — while there will only ever be one Bitcoin, the number of different coins based on Ethereum is potentially limitless. New coins are launched regularly and act as an enticing draw for many new investors (as well as experienced traders) into the world of digital currencies.
What can Ethereum do?
Ethereum allows its users to build and execute smart contracts and distribute autonomous applications all without third-party censorship making it extremely easy to set up and complete transactions. Ethereum provides developers with a comprehensive set of tools to build decentralized applications. There are no third-party interferences, which makes using this blockchain extremely empowering. The team behind Ethereum are focused wholly on continually improving the underlying blockchain infrastructure as the recent Constantinople upgrade demonstrated. This is a company that is in it for the long-term rather than ‘just cashing in the chips.’ This commitment is very reassuring and allows Ethereum developers to operate with unparalleled freedom which cannot be matched by any centralized company.
A simple explanation of a very smart contract
A popular feature of Ethereum which will ensure it remains prevalent for a long time is a key technology called the smart contract. Essentially this means that you can exchange money, property, stock, or practically anything crucially without needing to employ a lawyer or notary thus dramatically cutting previously expensive third-party costs. This is what makes many people believe that Ethereum is way superior to Bitcoin.
All that you have to do is deposit the digital currency for the specific product that you want. The transaction is fully automated, and if you don’t hold up your end of the bargain (or the seller), it doesn’t follow through to completion. It is in the spirit of if you don’t comply, Ethereum will cancel the transaction.
The future is undoubtedly bright for Ethereum, so bright in fact that its seeing mainstream adoption as Samsung has included ERC20 capabilities in their flagship Galaxy S10 smartphone.
This exciting development means that Galaxy S10’s native crypto wallet will feature Bitcoin, Ethereum and more importantly allow users to add ERC20’s directly into the wallet. Samsung is said to have integrated a full ERC20 wallet because it believes the potential of blockchain technology far exceeds the current realm of payments.