When we talk about Ethereum, we are referring to the second virtual currency market worldwide and to the one that has managed to captivate millions of investors with its innovative proposal.
The main essence of Ethereum is challenging and revolutionizing everything we knew until now, thanks to the fact that it allows the creation and development of new applications and new cryptocurrencies much faster than other platforms.
What is Ethereum?
The first step to understand what Ethereum is what its function is and how it is changing the rules of the game is to learn its main characteristics and why it is considered as competition from other similar platforms. Bitcoin pro is best software which is use by bitcoin users.
Firstly, Ethereum is not under the authority of any government entity, that is, it is a decentralized system. This type of system differs from a centralized approach, since the latter is controlled by a single entity in order to eradicate mistrust between the parties. Additionally, these centralized systems fail at a single point, making it an easy target for hackers and more prone to power outages.
In this way, hackers or even the same company take the opportunity to enter their data system and take over the information without major difficulties.
That is why one of the properties in which Ethereum has placed the greatest emphasis is on maintaining itself as a decentralized system, independent and free from the control of any entity. Not having a single point of failure, since it operates simultaneously from thousands of computers worldwide, it can never be completely disconnected.
How is Ethereum different from Bitcoin?
This cryptocurrency, in turn, offered security in each and every one of its transactions, making them worth using “Blockchain” technology.
Ethereum likewise operates as a public and distributed Blockchain network, but there are substantial differences with Bitcoin, despite the fact that both can be exchanged and extracted by its users.
- Bitcoin, for example, uses Blockchain to track ownership of the digital currency, making it a highly effective digital cash system between two users. For its part, Ethereum aims to launch the programming code of a certain application.
- The maximum limit for Bitcoin is 21 million of this currency, which will be reached at a certain time, while the supply of Ether could be infinite. In terms of mining, Bitcoin blocks take approximately 10 minutes to be mined and Ethereum has set a maximum target of about 12 seconds. This means that Ethereum will have faster validations than Bitcoin’s.
- That said, Ethereum followed in the footsteps of the technology previously used by Bitcoin and greatly improved its capabilities. It is a network that has an Internet browser, payment system and encrypted language, allowing users to create decentralized Ethereum applications on the Blockchain.
These applications can be decentralized updates of previously existing concepts or completely innovative ideas. This, in essence, eradicates potential intermediaries and the expenses they entail. A clear example is found in the “likes” and “share” of famous users or artists who have a Facebook profile, where the only profit produced is through the ads placed on their personal pages and which redirect directly to Facebook.
The same would happen with a decentralized version of bitcoin softwarer, where you would receive part of the profits produced in the future by the company and not just an artifact for contributing to it. This is how Ethereum eliminates payments to intermediaries for the performance of any type of services.
The Ethereum Virtual Machine (EVM)
The Ethereum Virtual Machine (EVM) is considered the main creation of Ethereum. It is complete Turing software with which almost any computational problem can be solved and that is executed within the same Ethereum network. Its main objective is to design complex algorithmic codes and facilitate the process of creating applications through much more friendly programming languages, avoiding the construction of a completely new blockchain for each one of applications. Ethereum allows each of the applications to be developed within the same platform.
In turn, the Ethereum Virtual Machine is separate from the rest of the network, allowing any company to learn how to create a bigger and stronger smart contract using EVM, without having to affect other transactions that take place.