Ethereum: the platform for the smart contract
Ethereum is very important for the world of crypto currencies because introduces for the first time the smart contracts.
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Ethereum vs Bitcoin
As we said here, Bitcoin is a system to transfer value. Ethereum (ETH) instead is a decentralized platform that allows developing smart contracts. Infact, if we simply define Eth a cryptocurrency, we commit a mistake.
What is the advantage of a smart contract?
Smart contracts let us introduce a concept that is fundamental for the informatics: the condition. Indeed, fulfilling certain conditions we unblock the activities envisaged by the smart contract. These contracts have another important feature: they are decentralized. Therefore,there is no need for a physical person to verify thatthe contract is terminated but the blockchain guarantees the validation.
Ethereum: simply more than a cryptocurrency
On the Ethereum platform is possible to develop a new cryptocurrency. Moreover, it is also possible to start the ICO that allows us to develop our idea. All the tokenscreated on this platform will be an ERC-20 token. This information is important,for example to choose the cryptocurrency wallet.
Features of Ethereum blockchain
Currently, just like withBitcoins, the miners guarantee the validation of transactions with the “proof of work” method. In the 2018,there will be some important updates on this platform, such as a different validation method called“proof of stake”. This system use a kind of “fuel” called Gas to pay the miners and validate the transactions.
Conclusions
Ethereum is a project with significant growth margins throughout 2018. One of the major points in favor is certainly the excellent development team members,in particular the founder Vitalik Buterin. Perhaps, the only cons point is that,compared to Bitcoin, Ethereum lacks a maximum supply.