Ethereum is also a kind of digital currency but is more than a currency. Just like Bitcoin this digital currency has no central authority and is decentralized. Both are traded on crypto markets but are very different from each other. On a popularity scale, Ethereum comes right after Bitcoin and it is the second most sought after currency in the crypto universe. But Ethereum is actually not just a cryptocurrency but a platform that enables payment and generation of decentralised currency. Ethereum in itself is a decentralised computing network based on blockchain technology.
What is Ethereum?
Ethereum is a platform that uses blockchain to store smart contracts and application code. Unlike a decentralized platform for undertaking financial transactions, Ethereum is a decentralized platform used for developing applications. The platform generates currency that is called Ether or ETH, just like bitcoin cryptocurrency.
Now the developers are using the Ethereum platform to develop new blockchain applications and releasing fresh cryptocurrencies. The majority of companies are releasing cryptocurrency via an Initial Coin Offering (ICO). So they raise funds in Ethereum and grant tokens using the blockchain. The token generated through this process is called ERC20. This is why the blockchain community has given Ethereum a new name, Blockchain 2.0.
Ethereum has gained huge popularity in the past few years after its launch in 2015. There are over 1,300 decentralized applications built on the blockchain. It gained major traction in 2017, and its coin (ETH) grew to 11,000%, i.e. from $8 in 2017 to $900 per ETH. This growth of ETH has made Ethereum so popular among cryptocurrency buyers and blockchain programmers.
Ether: The Fuel Of Ethereum
Ethereum increases its blockchain system value through its cryptocurrency Ether. Ethereum has stipulated a ‘gas’ price for every transaction performed over the platform. Any developer or program wanting to use the platform has to pay Ethereum a fee in its cryptocurrency, and that is Ether. Ether is similar to Bitcoin cryptocurrency, and an open network of people are controlling the Ether tokens.
