If you have ever heard of cryptocurrencies, chances are high that you must also have heard of Bitcoins. Bitcoins, the first ever decentralized applications to function as a medium of exchange clearly dominates the crypto market but there is a lot more that the highly-volatile, yet a promising crypto market offer, and Ethereum is one of it.
Simply speaking, Ethereum is an open software platform based on blockchain technology which enables the developers for building and deploying decentralized apps.
It has grown tremendously since its inception and it is currently the second-biggest by market capitalization value.
What led to the inception of Ethereum?
In 2013, the idea of Ethereum was proposed by Vitalik who came up with an idea of building the entire Ethereum system which would be supported by a global system of nodes. (He called the volunteers who download the entire Ethereum’s blockchain in ther desktops and enforce the rules of the system by keeping the network honest and receiving rewards in return).He then presented his idea in a white paper and announced the project in 2014. A few months later the team which comprised of members Vitalik Buterin, Anthony Di Iorio, Mihai Alisie, Charles Hoskinson, Joe Lubin and Gavin Wood decided to hold a crowd sale of ICOs for funding the development and it turned out to be a huge success.
Is it similar to Bitcoins?
Ethereum raised around $6 billion during the launch of its ICO and emerged as one of the global leaders in the cryptomarket. Just like Bitcoin, it is also a distributed public blockchain network. But, they differ completely in their purpose and capability. The Bitcoin blockchain tracks ownership of virtual currencies, whereas the Ethereum blockchain emphasizes on running the programming code of a decentralized app. In Bitcoin blockchain, the miner mines Bitcoin, whereas in Ethereum blockchain, the miner mines ether, a crypto token which is used to fuel the network.