hat is Ethereum?
Ethereum (ETH) is an open software platform based on Blockchain technology. It allows developers to build and deploy decentralized applications. In practice, Ethereum is much more than just a payment method, but a decentralized information distribution system.
Payments within this decentralized platform are made with a cryptocurrency called Ether. In everyday use, these two concepts often overlap, but it is good to remember that Etherium is the technology and Ether is the cryptocurrency.
In practice, it is part of the focus on decentralization of data storage. In a sense, Ethereum aims to use Blockchain to replace Internet third parties, which are usually responsible for storing data such as Google and Facebook.
Ethereum and Bitcoin
Does Etherium or Ether look like Bitcoin?
The answer is actually yes and no. What Ethereum and Bitcoin have in common is the use of a technology called Blockchain. But that’s where the similarities between the two largest cryptocurrencies end.
In fact, Bitcoin has only one application, which is to be a digital currency for online payments on a consumer-to-user basis. Or Bitcoin is just a currency, in a very clean form.
Although Bitcoin uses Blockchain technology to keep track of who owns Bitcoins, Ethereum uses Blockchain technology as a platform to manage almost any decentralized application. Bloomberg described Etherium as “shared software that can be used by anyone but is protected against counterfeiting. So its possibilities are really endless! “
Other differences between Bitcoin and Ethereum are:
Bitcoin’s supply is fixed at 21 million, while Ether’s growth is limited to a certain amount each year.
The processing time for a block of Bitcoin Blockchain is a full 10 minutes, while for Ether, it is a much more modest 12 seconds.
Who Invented Ethereum?
The decentralized system Etherium and the cryptocurrency and Ether were originally created in 2013 by Vitalik Buterin, who previously worked with Bitcoin. Online sales, made in 2014, have formed the core of funding for the new platform. The system became a reality on July 30, 2015, with 11.5 million “coins” in circulation.
How to dig Ethereum?
Most cryptocurrencies operate through the so-called. digging process. In this part of the article we will answer the question how to dig Ethereum?
With the Etherium Blockchain, instead of digging for coins, as with Bitcoin, users work to make Ether, a type of cryptocurrency that powers the entire network. Apart from the fact that this cryptocurrency Ether is traded, it is used by software developers to pay for services in the Etherium network.
Ethereum is dug at a rate of 5 Ethers for an excavated block. For each block of transactions, diggers use computers to repeatedly and very quickly guess the answers to a puzzle until one of them wins.
It is difficult for diggers to cheat in this game. There is no way to fake this job and come up with the right answer to the puzzle. That’s why the method of solving puzzles is called “Proof of work”. The special algorithm that Ethereum uses is called “ethasch”.
Approximately every 12–15 seconds, one block is dug. If diggers start solving puzzles faster or slower than that, the algorithm automatically corrects the difficulty of the problem so that miners return to approximately 12 seconds of solution time.
Ethereum may not need diggers forever. That is why the developers of the Ethereum algorithm intend to transfer it from “proof of work” to “proof of stake”.
If and when this algorithm is introduced, proof of pledge can be a means of reaching a distributed consensus that uses fewer resources.