Created by Vitalik Buterin, it has scored itself the second spot in
the hierarchy of cryptocurrencies. This digital currency launched in
2015 is predicted to surpass Bitcoin and may be the cryptocurrency of
the future. Is Ethereum similar to Bitcoin? It is in a way, but not
really. Like Bitcoin, Ethereum is a part of a blockchain network.
The main difference between the two currencies is that Bitcoin
blockchain focuses on tracking ownership of the digital currency while
Ethereum blockchain focuses on running the programming code or network.
Instead of having to build an entirely original blockchain for each
new application, Ethereum enables the development of thousands of
different applications in a single platform. In the Ethereum blockchain,
miners work to earn Ether.
Ether is a crypto token that helps run the network. Another use of
the Ethereum blockchain is its ability to decentralize any services that
For instance, Ethereum is capable of decentralizing services like
loans provided by banks, online transactions using Paypal as well as
voting systems and much more. Ethereum can also be used to build a
Decentralized Autonomous Organization (DAO). 14 A DAO is a fully
autonomous organization without a leader.
DAOs are run by programming codes on a collection of smart contracts
written in the Ethereum blockchain. DAO is designed to replace the
structure of a traditional organization and like Bitcoin, eliminating
the need for people and a centralized control. What are the most obvious
benefits of Ethereum? Firstly, a third party cannot make any changes to
the data. The system is also tamper and corruption proof.
This is because Ethereum is built based on a network formed around a
consensus as a result, making censorship impossible. Secondly, just like
Bitcoin, Ethereum is backed up by secure cryptography. Therefore, the
applications are well protected against any form of hacking.
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involve a lot of learning by doing and very little learning by telling, allowing players to explore, experiment, and discover.
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