What is Ethereum?

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That one cryptocurrency with the diamond logo

 

If you take a short look at any cryptocurrency trading site, you can see that there are hundreds of them. Bitcoin might still be the biggest, but that doesn’t necessarily make it the strongest, or most influential. In fact, many would argue that as of late, Ethereum is much more stable than Bitcoin is. Therefore, we’re going to explore the answer to the question some of you might have: what is Ethereum?

 

What is Ethereum?

 

For an answer to this question, you can get a lot of information on their own website. Ethereum’s own website defines it as “a decentralized platform that runs smart contracts.” It, like Bitcoin, runs on a Blockchain. If you don’t know what that is, it’s a shared info network that keeps track of, and verifies, transactions made with the currency.

 

So in a way, you could say that there’s a lot of similarities between Ethereum and Bitcoin. So we’re going to delve a bit deeper into the coin’s history, to better understand ‘what is Ethereum?’

 

A primer on the history of Ethereum

 

Ethereum was started in August 2014, by a nonprofit located in Sweden called the Ethereum Foundation. It was funded by a successful presale, and today it’s one of the ‘big four.’ The Big Four, as I like to refer to them, are the four cryptocurrencies that are listed on Coinbase. This is a pretty huge deal, since Coinbase is one of the most highly-used cryptocurrency trading sites there is today.

 

How is Ethereum different from Bitcoin?

 

In order to know the question ‘what is Ethereum?’ better, we’ve touched on some of the similarities to Bitcoin. But now, let’s look at a few of the differences.

 

According to the BlockGeek website, Bitcoin’s brand of blockchain technology is mostly an electronic cash payment system based for peer to peer trades. However, Ethereum’s own type of blockchain technology is a bit different. One way is because of the miners involved. They don’t mine Bitcoin; instead they mine Ether, which helps run the entire network.

what is Ethereum
A picture of Ethereum’s blockchain network

Ethereum is also a lot less limited than most other blockchains. One way this is true is the fact that Ethereum let the developers involved create whatever sort of things they want. This allows many different applications, more than Bitcoin is capable of. And, according to BlockGeeks, any service that is centralized, can then be de-centralized by using Ethereum.

 

Is there a way that I can get some Ethereum coin?

 

Now that you know what is Ethereum, you might be wondering how to get some. Lucky for you, it happens to be one of the four coins available to buy on Coinbase. Simply make a profile if you don’t already have one, link up your bank account, and buy some!

 

Or if you have some Ethereum and are looking to trade for a smaller cryptocurrency, that’s possible too. Just make a profile on Binance, and transfer some of your cryptocoin over there. You’re then ready to go!

 

Want to learn more about cryptocurrencies? We have lots more information on our other blogs!

 

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