Do you have some Etherium?
Although Bitcoin is constantly featuring amongst the crypto headlines. You may have also heard of something called Ethereum. And so you should have. Following Bitcoin in a close second when it comes to hype, demand and investment. So first, let’s start with the basics, what is Ethereum and why is it becoming so popular?
Ethereum is actually a software platform that is based on blockchain. As opposed to being solely a cryptocurrency. The reason that it’s so attractive to developers and users of the platform is that applications that are built on it aren’t subject to any regulations and transactions are made safe and reliable through ‘smart contracts’.
Ethereum does have its own cryptocurrency, namely, ‘Ether’. And it plays a hugely important role in how smart contracts work. By securing transactions, in the same way, bitcoin does, between its users. With all actions in the transaction being agreed upon by both parties.
It does however share certain characteristics with bitcoin, one being that they both use the groundbreaking technology behind bitcoin to validate and also publicise every single transaction of each of their platforms. However, the difference being is that bitcoin in itself is a currency and ethereum is actually the entire platform.
Another difference is since Ethereum only has 1000s of computers or nodes validating activity on the platform compared to the millions of nodes validating each Bitcoin transaction, Ethereum’s average block mining time is a quick 12 seconds, while Bitcoin’s average block mining time is a slow 10 minutes.
So how is the value of ether calculated? Well, Incentivising miners with payouts of Ether to validate its transactions makes the cryptocurrency safe, secure, and trustworthy to use. Mining also releases Ether into circulation, which increases the odds that users will build more apps on Ethereum. This in turn helps boost the profile of the platform.
If you want to discover more about the world of cryptocurrency or even the latest technological developments on a whole why not read on here at The Official Laskos, the home of digital.