September 19, 2021

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What is Ethereum and How is it Better than Bitcoin?

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Ethereum is the another rising star of the world of Crypto Currency. After its launch in 2015, the value of ether (Ethereum’s currency) has increased by more than 6,800 percent. Now the price of 1 Ether is almost near $2200. After Bitcoin, if any Cryptocurrency has gained so much popularity then it is only Ethereum.

Ethereum, which is also called Ether, is the third most valuable digital money after Bitcoin and whose market value is in second place right now. The technology on which it works is called Ethereum Blockchain. It was first brought to the world in 2013 by a 19-year-old Bitcoin programmer named Vitalik Buterin.

Also Read: How To Start & Invest Money in Bitcoin Cryptocurrency

This Crypto Currency has taken its popularity very high in a very short time. Buterin has improved Ethereum in such a way that it is much better than Bitcoin. Like Bitcoin, it is a Decentralized Payment Network which has its own Cryptographic Currency, which we can send to any place in the world with the help of Internet and we will not have to depend on any bank or third party to do so.

These Coded Transactions are stored on Decentralized Ledger which is also called Blockchain and it is visible to all who live in the network.

Who created Ethereum?

As we know that the name of the creator of Bitcoin is Satoshi Nakamoto, which is an unknown person, about whom no one has the right information. But the thing is different in Ethereum, the name of its creator is Vitalik Buterin who is a resident of Canada and was born in Russia. He published this idea in 2013 which took approximately two years to set up completely.

Buterin is a very meritorious student who has a great interest in mathematics and won the Bronze Medal at the International Olympiad in Informatics 2012.

He also got the Thiel Fellowship which was worth $100,000 in 2014, after which he dropped out from the University of Waterloo. After a gap of one year, Buterin and Canadian entrepreneur Joseph Lubin started Ethereum.

How is it different from Bitcoin?

Since it is the second-biggest cryptocurrency after Bitcoin, therefore Ethereum has always been compared with Bitcoin. But it has been seen that Ethereum is considered better than Bitcoin in many ways.

The work of both is almost the same but there is some difference between the two.

  1. Shortening of Block Times – Mining blocks in Ethereum takes roughly 15 seconds, while in Bitcoin’s it happens at the rate of 10-minutes. Due to its fast nature, it takes very less time for the Blockchain to confirm the transaction data, which can lead to more and more transactions.
  2. Having a more Sophisticated Fee Structure – Transaction fees in Ethereum are based on storage needs and network usage whereas Bitcoin transactions are based on block size and keep competing with each other.
  3. Having More Sophisticated Mining – The mining of Bitcoin requires ASICs (Application-Specific Integrated Circuits), which require a large amount of capital investment to mine whereas Ethereum’s mining algorithm has been designed keeping in mind the ASIC-resistance, so that mining can be decentralized easily.
  4. No more Transaction Fees – Transaction Fees are less in Ethereum than in Bitcoin.
  5. Use of more and more technology – Along with currency in Ethereum, other third party applications are also allowed to run in the network, whereas in Bitcoin only currency is allowed to run in the network.
  6. More Profit for Miners – Miners can earn more profit in Ethereum than in Bitcoin.

How does the price of Ethereum affect?

Ever since Ethereum was launched, its value has been increasing slowly, while the price of bitcoin has increased very quickly.

In between, the value of Ethereum had decreased significantly because someone had declared its founder dead, which was a rumor, due to which the value of Ethereum was reduced by 20% in a single day. Recently, many big companies have made good investments in Ethereum, due to which its value has increased significantly.

The Team

  • Vitalik Buterin (CEO) – In 2011 with the help of Bitcoin, Vitalik discovered cryptocurrencies and blockchain technologies. After receiving the Theil Fellowship in 2014, he dropped out of the University of Waterloo to work full-time on Ethereum.
  • Gavin Wood (CTO) – Vitalik Met Gavin in 2014 through a mutual friend. He created the smart contract language Solidity. For the Ethereum Virtual Machine (EVM), he also wrote the first yellow paper on the Ethereum blockchain.
  • Jeffery Wilcke – After Inception, he is looking after the implementation of Go programming on Ethereum.
  • Ming Chan – He is working as the executive director of Ethereum and oversees the regulatory and legal matters of the Ethereum blockchain.

Today there are more than 15 million cryptocurrency wallets which are holding Ether which is increasing gradually.

What is the Future of Ethereum?

The value of Ethereum has been increasing continuously since the time Ethereum originated, investors believe that it will continue to grow like this in the coming years. This is also because many big companies such as JP Morgan Chase and Microsoft have invested their money in it.

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