What is Ethereum?
Ethereum is an open-source cryptocurrency created by Vitalik Buterin, Garvin Wood, and Joseph Lubin. Launched in 2015, it is currently the second largest cryptocurrency in terms of market capitalization. Among the functions that drove this cryptocurrency to that position is its technology, specifically the GAS. This system prevents errors and accidents during the different processes to occur in the Ethereum network. In addition, it serves to measure the effort and steps required by each computational process.
The cryptocurrency is called Ether, while the blockchain enabling its operation is called Ethereum. It is based on a decentralized system called Turing machine and its operation has a technology not seen in cryptocurrencies until now, the so-called intelligent contracts. Its objective is to avoid accidents and verify that the agreed transactions are carried out as planned.
Best cryptocurrency exchanges to buy Bitcoin, Ethereum and Ripple
If you want to trade Bitcoin or Ethereum, the choices are endless. Yet when you begin going down the list of market capitalization, the options narrow. Even Ripple is not present on all exchanges. So, if you are interested in trade a specific coin, an easy way to eliminate potential candidates would be to check if they offer to trade in your desired one. If you are not sure which cryptocurrencies you want to trade, perhaps it is better starting from the most popular ones, but at an exchange that offers a relatively wide variety of coins, so you can change your mind easily before changing the exchange.
Every exchange uses a different interface and different charting tools. You obviously cannot get familiar with every option available as it would take too much time. Reviews with screenshots may become handy in getting the look and feel of the platform. If you prefer advanced trading tools, there is a good chance that a broker might have more sophisticated tools. However, if you want a clean and simple one, most exchanges will have such an option. In addition to the ease of use, speed matters. If you are trading at a rapid clip or if you just need to have the system working properly without causing nervous breakdowns, watch out for reviews that complain about slow performance. Such exchanges could also have other issues.
Ethereum vs Bitcoin
- While Bitcoin will have a total volume of 21 million somewhere in 2140, the Ether has no supply limits.
- Thanks to the lack of a maximum of Ether units, the Ethereum is not considered to be a deflationary cryptocurrency, which is the case of Bitcoin.
- The time of creation of a block and its subsequent union to the Bitcoin chain is 10 minutes, while that of Ether varies between 12 and 18 seconds.
- The Bitcoin security algorithm is the SHA256 while that of the Ethereum is the Ethash, similar to the SHA3.
- The programming language of Bitcoin is C ++ while that of Ethereum is Turing complete.
- The reward for mining Ethers recently dropped from 5 to 3 units per block, while for mining Bitcoin it remains constant at 12.5 units per block.
- Bitcoin has 8 decimals in the division of its entire part while Ether has 18.