I spent 70% of all of my income on investing Bitcoin but I was a bit too late because the moment that I heard about Bitcoin, its value has exploded and that’s why I thought that it’s too late to invest in it. I was in search of cryptocurrencies and I’ve found a lot of them, but nothing has captured my eye except for one, Ethereum.
Let’s have a quick review of what Ethereum is, what are its uses, what is the difference between Ethereum and Bitcoin and what are the terms that you need to know regarding cryptocurrency.
So what is Ethereum?
Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications.
What is the difference of Bitcoin and Ethereum?
The difference between Bitcoin and Ethereum, although both of them is a distributed public block chain network, is that they differ on purpose and capability.
The Bitcoin Blockchain is used to track ownership of digital currency (Bitcoins).
The Ethereum Blockchain focuses on running the programming code of any decentralized application.
Bitcoin is the tracker, Ethereum is the gas that powers the tracker.
What can Ethereum be used for?
Ethereum enables developers to build and deploy decentralized applications. A decentralized application or Dapp has a particular purpose to its users. Bitcoin is a Dapp that provides its users with peer-to-peer electronic cash system that enables online Bitcoin payments
Ethereum can also be used to build decentralized autonomous organizations (DAO). A DAO is fully autonomous, decentralized organization with no single leader.
What is a smart contract?
Smart contract is just a phrase used to describe computer code that can facilitate the exchange of money, content, property, shares or anything of value. When running on the blockchain, a smart contract becomes like a self operating computer program that automatically executes when specific conditions are met. Because smart contracts run on the blockchain, they run exactly as programmed without any possibility of censorship, downtime, fraud or third party interference.
Here’s the reason why now is the perfect time to invest on Ethereum
I am sure that the future world economy will be built upon an infrastracture of smart contracts. These smart contracts will send and receive value based on specified and immutable rules that are guaranteed to execute with 100% uptime. Ethereum has the potential to build this infrastructure. In the next 10 years, dollars will be rebuilt as cryptocurrency and such a cryptocurrency would be compatible with the public and permissionless smart contract infrastructure available on Ethereum.
Ethereum is currently just over 2 years old and on the timescale of the internet, it’s still very young. Even though Ethereum is very young, there are already a number of real world examples of Ethereum smart contracts in play:
Here are a few examples:
Prism, which is currently in closed beta, allows for users to build a cryptoasset portfolio on the Ethereum blockchain. The user enters the cryptoassets they would like to buy, the percentage of each asset in the portfolio and how much to invest.
Augur is an Ethereum based prediction market platform that rewards users for correctly predicting outcomes. Users can create markets from anywhere in the world and others can make predictions on the outcome of that market knowing that the contract will pay out automatically and correctly.
Etherisc is a decentralized insurance product which generates payouts immediately and autonomously based on pre-agreed conditions. For simple true or false events, smart contract based insurance could disrupt the market in a matter of years.
Crypto is the future of the socio-economic global landscape, and the price of Ethereum will ride the wave of this boom to heights that are many times higher than today. Ethereum is expected to launch “Casper”, a network upgrade that will reward users for holding and staking Ether in specialized smart contracts that help to secure the network – removing millions of dollars from circulation and placing upward pressure on the price. Other developments to be launched in the next 2 years will also enable massive scaling of Ethereum transactions, making this technology unrivaled in its ability for not just executing smart contracts, but acting as a global payment processor.
If you want to learn how to convert your Bitcoin to Ethereum and to get started on Ethereum, just go to the next blog post.