What Is Ethereum?
Ethereum is a system first introduced at the North American Bitcoin Conference by Ethereum founder Vitalik Buterin. Although generally considered a sub coin, Ethereum is essentially an innovative system aimed at developing and using blockchain technology in more areas.
Ethereum is, in short, a crypto operating system that takes Ether (ETH) cryptocurrency as its power source. The aim is to enable users to create new software on the blockchain system to which Bitcoin is connected. Thanks to this freedom that Ethereum provides to users, it allows many sub-coins to be issued.
The Ethereum system is intended to prevent the storage and use of information such as personal data by third parties for different purposes. Almost all the transactions we do from the internet today (shopping, bank transactions, our use of social media, our internet history, etc.) data is recorded in data banks. For what purposes this information will be used, it is a complete unknown.
With the Ethereum system, these transactions are stored on many different devices in a completely dispersed and anonymous manner. In this way, access to this information becomes impossible and turns the entire internet into a decentralized platform.
In order for the software to be included in this decentralized system to be produced, Ehereum aims to use Ether cryptocurrency as a fuel in one aspect.
Could it rival bitcoin?
Ethereum is currently the second largest cryptocurrency by transaction after Bitcoin. The fact that its value has increased in a short period of time and is more innovative than the Bitcoin blockchain has raised the question that Ethereum can be a competitor to Bitcoin. But Vitalik Buterin, the founder of Ethereum, says this:
“If we compare cryptocurrencies with the valuable resources available in the world and accept Bitcoin as gold and Litecoin as silver, then Ethereum is oil. Because the technology underlying Ethereum will be the source of energy in the world’s internet system. The same applies to Ethereum technology, just as oil is used in many sectors and technologies around the world. That is why we call Ether ‘crypto fuel’. The energy needed by the Ethereum platform will be provided by Ether (ETH).”
As can be seen from Buterin’s description, Ethereum does not have the purpose of competing with Bitcoin. We also see that the entire Ethereum founding team has been among blockchain and Bitcoin developers since the first time Bitcoin came out.
What are the differences between Ethereum and Bitcoin?
• While the transactions you can make with the Bitcoin system are obvious, you can produce new systems and new sub-coins with very different software with the Ethereum system.
* Ethereum system is more innovative than Bitcoin blockchain system.
* Bitcoin mining benefits from your processing power, while Ethereum mining provides a balance between manufacturers.
* It takes 10 minutes for a block to form in the Bitcoin system. Since the Ethereum system also has a block formation time of 15 seconds, the confirmation time is much shorter.
How Is Ethereum Mining Done?
Mining is an important factor for the continuity and security of this system with the same bitcoin logic. In order for Ethereum mining to be performed by everyone, the system requirement is not with special production devices, as in Bitcoin mining, but with a video card (GPU). An increase in the number of miners also leads to a decrease in earnings from day to day in Ethereum mining.
How Is Ethereum Produced?
Although Ethereum production seems to be the same method as Bitcoin production, due to some small differences, Ethereum production offers some advantages.
For Ethereum production, you must first create an Ethereum wallet. After installing the necessary programs, you can start production. You can produce individually as well as in a pool. Inclusion in the pool will increase your production.
You don’t need high-processor devices for Ethereum production. Production is done via video card (GPU).
Relationship between Ethereum and sub coins
The Ethereum system is a system in which many new coins are traded that arise later, as it is an environment suitable for the creation of many new software. In a system where the first coin offerings, called ICO, to launch a new coin, raise funds en masse before they are released, the funds are made with Ether, the monetary value of the Ethereum system. Thus, the Ethereum system acts as a system that allows new cryptocurrencies to enter circulation.
ICOs, which are considered unreliable by many, have experienced many cases of fraud.