What is Ethereum ?

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Written by
1 year ago

After Bitcoin Ethereum is the second most popular cryptocurrency it was founded by vitalik buterin and Gavin wood in 2015 today Ethereum market capitalise represent more than 17% of the 1.2 trillion dollars global crypto market.

In cryptos on words ethereum is a global decentralized platform for money and new kinds of applications etherium is running so many games and financial apps running on top and it is working with the help of block chain technology on block chain technology every transaction is verified and recorded

Blockchain transactions use cryptography to keep the transactions secure and verify transactions.

Ether is a token which is used for selling and buy goods but the most interesting thing about ethereum is that people can build applications and run them..

The network of ethereum is also used for storing data and here a user can hold all the activities about his games.

Ethereum and bitcoin:

There are so many similar things in between ethereum and bitcoin as both of these are crypto currencies and are popular . Ethereum is holding second 🥈 position in cryptocurrency market after bitcoin.

As we know that both of these are used for investment and trading purposes but some features are distinguishing in these two cryptocurrency like we can run different applications on ethereum but that service is not offered by bitcoin.

Benefits of ethereum:

There are so many benefits of ethereum

1- large network

2-range of functions

3-constant innovation

4-Avoids intermediaries

Large network:

Billions of people has done trading in ethereum means they have tested ethereum and they have experienced it . There is large global community of ethereum and it has big share in blockchain.

Wide range of functions:

As i have mentioned that ethereum perform a number of functions like it can store the data of third party and we can create different type of applications and we can run those applications easily. Also we can trade and invest in Ethereum.

Constant innovation:

A large number of community who is using ethereum they are just wanted to improve new ways to spread the network and develop new applications because ethereum is getting popular now.

Avoid intermediaries

There is no third party in ethereum as the network is decentralized so ethereum network promises to let users leave behind third party intermediaries like lawyers who write and interpret contracts .

Disadvantages of ethereum:-

Transactions costs :

Ethereum is getting popular on daily basis and the transactions cost of athereum is rising and it is quite costly. If you are earning money as a minor this is great that you can pay the cost of transaction but if you are trying to use the network then you will find difficulty and you will not find ethereum a profitable cryptocurrency. Because miners are just working and they are not investing money into it they just need electricity power and they can mine ethereum but the people who are doing investment and creating applications with the help of ethereum they find it hard to pay the transaction costs.

Potential for crypto inflation :-

There is no lifetime limit for ethereum like Bitcoin which has limit and so it means that ethereum might function more like dollars and may not appreciate as much as Bitcoin which has a strict lifetime limit on numbers of coins . Bitcoin has proper limit so that is unique thing about bitcoin and one can say that whole market of crypto always see the move of bitcoin and then predicts it own move . The trade volume of ethereum is low as compare to bitcoin it does not mean that it is not a good option it is just for the sake of clarity.

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Avatar for Fizza1
Written by
1 year ago


It is good to have Ethereum but I will prefer always bitcoin because we are receiving our earning in bitcoin cash

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1 year ago

It is for the first time I am hearing that Ethereum is offering us to make applications wow

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1 year ago