Ethereum is a decentralized platform that uses Satoshi Nakamoto technology, also known as
blockchain technology. Ethereum is build by a Russian programmer Vitalik Buterin. The ethereum
network has launched as a new type of internet and has the backbone for the new type internet.
Ethereum has the basic layer on where decentralized applications and smart contracts can be
launched on. DAPP is compared to the current internet with its applications much safe, better
privacy, easy to use. To use DAPP and smart contract you need some programming skills.
Ethereum has also developed its own programming language, solidity.
Ethereum has an open source blockchain protocol as bitcoin. The source code can be checked and viewed for both. As it happens with bitcoin, the network keeps the transaction’s history safe with nodus. Both blockchains are fully open and can be adapted by anyone to continue building and launching their own applications on it. Ethereum uses the same algorithm as bitcoin called, proof of work consensus. Ethereum wants to switch to a proof of stake algorithm, this uses much less energy as proof of work consensus.
Ethereum and ether are often confused together. These two terms are certainly have difference, when you talk about ethereum, you talk about the whole entire network. A crypto network has a token that represents the value of the network. This is also a token with which you can pay with. This is token of ethereum is called, ether. Miners can earn a belonging in ether, this represents the ethereum network. In short the ether is a payment unit for the ethereum network. When it is said that someone has bought Ethereum they have ether.
Ether has a certain value, you can use it to pay for various things. There are also numerous web shops where they accept ether as a means of payment. It is also possible to donate ether as money from different organizations.
Ethereum is much less scarce compared to bitcoin. With Bitcoin, it is set up that there are no more than 21 million bitcoins. Ethereum can be created immediately without any limits. It is also true when bitcoins markets drops, the market of ethereum will fall to. This is because Ethereum makes use of bitcoins service. Bitcoin is a currency and Ether is a token, with bitcoin it is intended as a means of payment and ethereum as a decentralized computer power, that creates the token (ether).