Ethereum is the budding digital currency of the crypto currency arena. Following Bitcoin which is known as the inceptor of the digital currency, Ethereum have become the next important mode of payment.
It was initiated in 2015 and gradually its value has increased more than 2300 percent in the previous years and currently one Ether value is $308 as on 30th Oct 2017.
After knowing about such a huge increment in its value, there is one question which will arise in your mind, that what is Ethereum? How does it work? Is it safe to invest money in this digital currency? Etc, all your queries and questions will be adhered to once you go through the below write.
Definition of Ethereum:-
Ether is known as the second most precious kind of digital currency succeeding Bitcoin. Ether is executed on the technology called Ethereum. This unique technology was initially initiated by 19-year-old Vitalik Buterin, who is a Bitcoin programmer in 2013.
Vitalik envisioned Ethereum to be an upgraded and advanced version of Bitcoin. This novice technology works exactly like Bitcoin, as through Ethereum also one can transfer funds through the internet with nil requirement of any third party or bank, so you can call this new technology as the decentralised payment system of the cryptographic currency.
All the transactions are hoarded in the decentralised ledger and block chain. These transactions are available on the site to be viewed by everyone who is a part of this particular network.
Differences between Ethereum and Bitcoin:-
Ethereum has become the second most popular form of digital currency after Bitcoin and in this phase, the former surely possess certain differences with the latter.
The researchers claim that Ethereum is really good and certainly have certain advantages over Bitcoin.
The foremost important advantage of Ethereum over Bitcoin is that the former permits for “blocks”(the records of all the transaction of the crypto currency) which can be generated quickly than Bitcoin.
Bitcoin is the oldest form of crypto currency is used by numerous online vendors and also by some offline stores as well, but Ethereum’s users are happy with the thought that its less usage has maintained its efficiency and they think that it’s more reliable for transactions than using it just a network for accumulating value.
The most vital leverage of Ethereum is that this technology permits the computer applications to run smoothly rather than only focusing on the currency to execute on the network.
Bitcoin revolves around only money which is neither guarded by one party nor it is administered by a paramount server, but through Ethereum technology many different things can also be executed on the network along with money. It is mostly observed that we store our files on a cloud storage platform, for example, Dropbox, which means we trust the Dropbox to guard our essentialities, but in a decentralized storage structure you have to rely on others for taking care of your stuff, which use this technology and are keen in maintaining it as well.
There are many apps which are manifested on Ethereum and even the grid is used by the new business delegates who raise coins as their initial offerings as money, through this you can exchange Ether or any other currency for ‘token” which permits you to avail any service.
Though the followers and users of Ethereum face certain difficulties with this technology one thing is for sure that this technology has gained a lot of popularity and funds in current months.
How the rate of Ethereum is affected?
It is noticed that the rate of Ethereum has risen slowly compared to Bitcoin, since the time of its inception which remained $10 for the first 18 months. In March 2017 its value increased and was claimed to be $395 in June before declination of its value to $155 in July and then again it had an upper graph of rate.
The increment in the value of Ether was satisfactory and the whole credit goes to Bitcoin as it has instigated interest in people to invest and pursue trade through the online currency. Many famous companies like Intel, JP, and Microsoft have achieved great profits by investing in this new digital currency.
The reason for the downfall of the value of Ether is shouldered to the security affairs and unsteadiness of the general market, encompassing the sell off by big delegates or a bunch of forgery news. It is witnessed that the value of Ethereum decreased more than 20 percent in a single day because of the reason that people lost the trust and hope of making money through this digital currency because of the false news that Buterin have passed away which was made viral everywhere, which created chaos among the investors of ether.
Inceptor of Ethereum:-
People were very curious to know the creator of Bitcoin, which is the first digital currency. Satoshi Nakamoto is the person who created this technology though there were few persons who claimed of inventing this technology, finally, the real name came to the light when Craig Wright told everything to BBC. So exactly like this Ethereum creator is also someone who is always looked for.
Vitalik Buterin, who is a citizen of Canada and born in Russia, published the idea of Ethereum in 2013 when he was only 19 years old and for two years worked over this technology. He is a genius in mathematics and he has also received a bronze medal at the International Olympiad in Informatics in 2012.
From the age of 17, he started to write his views about Bitcoin on the famous Bitcoin websites once he came to know about this concept from his father. In 2013, he initiated the concept of Ethereum as the “decentralized mining network and software development platform rolled into one”.
He also got a Thiel Fellowship worth $100,000 in the year 2014 and then he finally passed out from the University of Waterloo. In the end of the same year Buterin and Canadian businessman Joseph Lubin together founded Ethereum Switzerland GmbH.
How many people are currently using Ethereum?
According to others can, there are around 5.3 million accounts of Ether. The accounts are also known as wallets, the account holders can possess more than one Ether account if they want. There has been a rapid increment in the number of wallets in the recent months which are marked as a rise of 1.6 million in May.
Where can I spend it?
Ethereum is a form of crypto currency which is anonymous in nature which is safe from fraudulent activities and all the transactions of this technology are saved in a decentralized ledger. The users can transfer huge finds through this network with the involvement of any bank, middleman or fees.
You can spend Ether to many online stores. You can also store the digital currency in your wallets and gain huge profits once the value of the ether increases.
Should I invest in Ethereum?
The price of Ethereum is increasing rapidly and hopes that it will be using more in upcoming months. It is true that crypto currency is unpredictable and the users should always keep an eye on the rising and falling trend of these currencies. But there are people who have earned millions through Ethereum.