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Ethereum is not a simple alternative to bitcoin, but it is a platform that leverages blockchain technology (also used by bitcoin), not only to offer another alternative payment method similar to bitcoin, ether, but also bitcoin. Rather it is a development platform of software. Cryptocurrency helps to create systems that share a blockchain, known as a blockchain, where the recorded records cannot be edited or modified at any time.
Ethereum is not a substitute for bitcoin. The bitcoin alternative that ethereum offers us is called ether, a platform next to the ethereum project which we will show you everything about below so that you will know how it works and how to buy ethereum.
What is Ethereum?
As I commented above, Ethereum is a project that combines Ether, a digital currency like Bitcoin, with Ethereum allowing us to take advantage of the opportunities of the Blockchain. Ethereum's record is immutable. Ethereum has been known to create smart contracts from the very beginning. Intelligent contracts, as a general rule, involve a financial operation, they operate in a manner transparent to both parties, and their operation is identical to programming code if they do so.
All this information is reflected in the blockchain, an immutable record where all operations are reflected, whether for the sale or purchase of currencies, smart contracts ... The information stored in the platform block is accessible to all and is available in all computers. who make up the ethereum network. The operation of the bitcoin blockchain is virtually identical, but it only records transaction data, as the possibilities offered by this technology have not been expanded.
What is ether?
ethereum cryptocurrency
The Ethereum platform itself is not a currency. Ether is the currency of the Ethereum platform, and with which we can pay people for goods or services. Ether launched into the market to compete with Bitcoin but takes full advantage of the EtherBlockchain.
Ether, like bitcoin, is not operated by any financial body or company, so its value or quote is not tied to stocks, real estate or currencies. The value of Ether is determined by the buying and selling operations existing at the time in the open market, so its price will change in real time.
Ether is not limited in number like bitcoin (which is 21 million ), so its price is currently 10 times less than bitcoin. During the pre-sale that took place before the launch of Ethereum, 72 million Ether was created for all users who contributed through the Kickstarter platform to the project and for the Ethereum Foundation, which, as we will see, will give us much more provides. important features. and valid. Under pre-sale terms in 2014, ether emissions are limited to $18 million per year.
Who created Ethereum?
Unlike the creator of bitcoin, the creator of Ethereum is not anonymous.
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Vitalik Buterin began development of Ethereum in late 2014. To fund the development of the project, Vitalik solicited public funds, raising just over $18 million. Before focusing on the Ethereum project, Vitalik had been writing about bitcoin on various blogs, it was when he began to develop alternatives that the technology used by bitcoin could offer him and By then it was lost.
Alternatives to Bitcoin
Bitcoin
Currently in the market we can find a large number of alternatives to Bitcoin almighty, but over time, this number has decreased significantly leaving Ether, Litecoin and Ripple as the most used alternatives by users . Much of the success Ether is making is thanks to the entire Ethereum project that is behind it, as if it were just an alternative, it would not have managed to get a quarter of the worldwide cryptocurrency operations. , where Bitcoin is king with almost 50% of the trade.
How to buy Ethereum?
Buy Ethereum
Next we will explain how to buy Ethereum Or more precisely, how to buy Ethers which is the name of cryptocurrency.
Being a direct competitor to Bitcoin, to be able to be fully involved in the creation of Ethers we need a powerful computer, internet connection and the necessary software to be able to become part of the network that integrates it, and so start getting this kind of digital currency. Considering that Bitcoin started operating in 2009, the various app and forks we can find in the market are running at full capacity, something we can not say about Ethereum at the moment.
We can also choose the fast way and buy Ethereum directly this currency through services like Coinbase , a service that also allows us to store our cryptocurrencies securely.
What is blockchain?
Blockchain
In order to explain the advantages that Ethereum offers us, we need to talk about blockchain, the protocol used to manage all data and operations performed with Ether, the same protocol used by Bitcoins but to which they have given a benefit much more important that provides security.
Blockchain is a registry where all information about cryptocurrencies is stored. Each cryptocurrency uses a different register. This record can not be edited or modified at any time and is also visible to everyone, so that anyone can access it. Protecting against the modifications that blockchain offers us is its main virtue as they can be used to create Smart Contracts.
Intelligent contract
smart contracts
Thanks to Ethereum you can make contracts that if the written conditions are met, they will be met if or if automatically without the need for a third party to provide the light. The conditioning factor for the conditions to be met can be chosen from the resources created by both parties. The banking system is one of the most interested in being able to approve this type of contract to automate deposit and other contracts with customers, as it would avoid possible human errors in addition to allowing autonomous operation.
Imagine you have a portfolio of securities in which you have set the condition that if the price of a given security reaches the X digit they will be sold automatically. With a smart Ethereum contract no person will have to intervene, No one needs to be price aware at all times to proceed with the sale of shares when they reach a certain value.
Although everything looks and is very nice, it should be borne in mind that this type of contract can not be modified, so once it is included in the register only if you can cancel if a condition is allowed that allows it . Nor can the terms of the agreement be modified, as as I have commented blockchain is a record that cannot be edited or modified at any time.
Are there any cryptocurrency bubbles?
Like any other type of asset, cryptocurrencies are sensitive to bubbles that inflate their price far more than their real value. In the case of cryptocurrencies, detecting a potential bubble is a much more complicated task than in other types of assets since it is almost impossible to determine the true value of something as ethereal as a cryptocurrency can be.. The value of an Ether is determined by the law of supply and demand, the more people buy Ether, the more its price increases and vice versa, which can cause its current price to be strongly influenced by speculators who buy and sell cryptocurrencies by just thought about speculating on its price. One advantage Ether has over Bitcoin is that its quantity is not limited to 21 million units, but that 18 million ethers are released each year, which will help curb inflation in value.
Regardless, it is difficult to know whether we are really facing a bubble or not, as some experts consider this in 5-10 years the price of an Ether may be 100 times higher than the current one which would indicate that there is still a high ride up.
If Ethereum has convinced you and you want to become part of this cryptocurrency, here you can buy Ethereum . Aren't you still encouraged to buy Ethereum ?
