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What is Ethereum [Ethereum Blockchain 101]
Manage episode 294465583 series 2936986
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Ethereum was invented in 2013 and brought to life in 2014 by Vitalik Buterin. Unlike the Bitcoin network which was designed for Bitcoin transactions only, Ethereum is a do it yourself platform for decentralised apps (or Dapps) that uses smart contracts. ‘Ether’ is the Ethereum network’s currency and it is used for running Dapps.
Ethereum is a platform that makes it possible for any developer to write and distribute next-generation decentralised applications.
Borrowing the concept of distributed consensus and cryptographic proof that makes cryptocurrencies such as Bitcoin so effective in trustless payments, Ethereum extends the use of these technologies to trustless agreements. This allows developers to easily build innovative new products on a censorship and collusion-resistant foundation.
One misconception is that people think that ethereum is a cryptocurrency. The truth is the ethereum is actually a blockchain. The currency that's used on that Blockchain is called ether. So when people are talking about the price of ethereum, they're actually talking about the price of ether. Unlike Bitcoin, which has a 21 million coin cap. Ethereum has no limit on the number of coins that can be in circulation or produced. Unlike Bitcoin, however, ethereum is more capable.
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