Understanding What is Ethereum? — A complete guide

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What is Ethereum? A Step-by-Step Startup Guide for Beginners

Do you want to know what Ethereum is & it’s benefits, and what it can be used for, this guide is perfect for you.

Important Note: If you’re unfamiliar with blockchain technology, check out step by step introduction for blockchain technology beginners guide here.

1.What is Ethereum?

Ethereum is an open-source platform, based on blockchain technology, allowing software developers to build smart contracts and decentralized applications & it supports the latest & modified version of Nakamoto consensus via transaction-based state transitions.

Ethereum was created in 2014 by lead-developer Vitalik Buterin and is now the second most valuable coin in the cryptocurrency industry.

2. Ethereum and Ether

People generally use the terms Ethereum and Ether mutually. However, they are different.

Ethereum is the smart contract network, although Ether is the token or coin needed to fuel it. With many latest technologies and names, most people call both “Ethereum” and use the currency code ETH.

3. Benefits of Ethereum?

Ethereum platform benefits from all the properties of the Blockchain technology that it runs on. It is completely ignore to any third party interference, which means that all the decentralized applications developed within the network can’t be controlled by third party at all.

Multiple Blockchain network is formed around a basis of unity, meaning that all the nodes within the platform need to agree on single change made within it. This get rid of possibilities of fraud, corruption and makes the network very secured.

The whole network is decentralized, which means there is no way single point of failure. So, all the apps will always stay online and never go to offline. Moreover, the decentralized terms and cryptographic security make the Ethereum platform well protected against possible of hacking attacks and criminal activities.

4.What is the difference between Bitcoin and Ethereum?

Like Bitcoin, Ethereum is a distributed public blockchain platform. Although there are some important technical differences between the both like :

Bitcoin and Ethereum differ considerably in purpose and capability.Where Bitcoin stores a list of balances and transactions on its blockchain, the Ethereum blockchain is designed to store different types of data. This data can be accessed and used by computer programs running on the Ethereum blockchain. These programs are called decentralized apps, or dApps.

Read more here : What is Ethereum? A Step-by-Step Startup Guide for Beginners