Ethereum (Ether) … is among the top ten digital currencies in the cryptocurrency market. It has flourished significantly in recent times and competed with Bitcoin at the top of the cryptocurrency ranking, but it is still in second place until this moment.
What is Ethereum?
Ethereum is considered a decentralized system; it can resemble a giant computer that works continuously without stopping, that no one can enter it because of its powerful and strict monitoring system, it is just devices linked to each other through this intelligent system to form the Ethereum system, and that It is done through a group of applications that execute several orders as called a smart contract.
Ethereum is the product of the cooperation of about 500 companies working in various technology fields, who gathered together to discuss the consolidation of strength and unify it in the development of the Ethereum network. Ethereum is not a currency, but a system and its digital currency is “ether.” The “blockchain” blocks and performs an intelligent contract function that facilitates the conclusion of a contract on the Internet that mimics, in fact, traditional contracts while providing an element of security and trust.
The beginning of Ethereum
At the end of 2013, programmer Vitalik Buterin proposed an electronic system called Ethereum and a digital currency called “Ether”, and the currency was founded and developed by online audiences in mid-2014.
The platform went live on July 30, 2015, and developers have always tried to look for a way to differentiate between Ethereum and Bitcoin, and they made an exclusive coin with features that stand out in the market.
Ethereum makes intelligent contracts easy to create, which is self-implementing code that developers can use in a wide range of applications.
The project is considered one of the most successful crowdfunding projects, as the team has succeeded in raising more than 18 million dollars, and the innovative contract platform continues to develop to this day, to become a complete system from hundreds of developers. It has attracted the attention of many giants such as Microsoft and IBM.
The $ 18 million crowdfunding campaign funds and project financing process are managed by the Ethereum Foundation, a Switzerland-based not-for-profit.
How Ethereum works
As we mentioned in the past that Ethereum is a decentralized system based on a database, which is the blockchain, and it is also composed of several computers connected around the world, using some applications through which many orders are executed according to smart contracts, which are information protocols that simulate the conclusion Traditional contracts that require conditions and requirements for their execution without the need for a specific authority or entity controlling its operations.
Every programmer working in the Ethereum system has a valuable supportive force that helps him create a smart contract. Blockchain just like it happens with Bitcoin.
From this point of view, Ether and its symbol, ETH, appeared to occupy second place in terms of strength and market value after Bitcoin.
Bitcoin and Ether
Ether developers are constantly trying to appear singularly in the cryptocurrency market, as they plan to become number one in digital currencies, creating an atmosphere of honest competition between the two currencies, and making this there are differences between the two currencies, including:
- The difference in ability and goal.
- Bitcoin provides a single application of blockchain technology, through which Bitcoin is paid for online, unlike Ethereum, which focuses its technology on running programming code from any decentralized application.
- Bitcoin is a limited flag, meaning that after extracting 21 million Bitcoins in 2040, no new currency will be removed from Bitcoin, unlike Ether, which has no one, as its supply is affected by the coin makers themselves.
- Ethereum is faster than Bitcoin; in Bitcoin, it takes about 10 minutes to complete the transaction, and in the case of Ethereum, it won’t take more than about 15 seconds.
- Bitcoin emerged with the single purpose of digital currency, while Ether originated as a currency for the Ethereum platform.
International Recognitions of Ethereum
The Ethereum system is recognized by many international bodies, including Microsoft, Intel, JPMorgan, and more than 86 major economic and financial institutions that recognize the Ethereum system.
Several companies have entered into understandings and partnerships with the Enterprise Ethereum Alliance, an excellent proof of recognition of the Ethereum system and the ether coin.
The price of the Ether currency
According to the coin market cap, one Ether’s price reached $ 1,717, which equates to 0.06274630 Bitcoin.
As for the currency’s market value, it amounted to 52.567 billion dollars, which is equivalent to 6,168,184, which is considered a great market value, as the currency ranks second among digital currencies comes directly after Bitcoin.
Ripple is the stiffest competitor for Ether, as Ripple is in third place regarding the market value of digital currencies. Ether wants to crowd out the lead with Bitcoin, the “mother currency in the digital currency market”, by adding many advantages to the currency; however, it is still in second place so far behind Bitcoin.