Those who are new to this whole cryptocurrency and blockchain phenomenon may think that it is only about Bitcoin and money transactions. Blockchain technology is capable of so much more and Ethereum clearly showcases that.
First, let’s set things straight: Ethereum is an open-source platform based on blockchain technology. Ether (ETH) is the “cryptocurrency” generated on the Ethereum platform. Ethereum Classic (ETC) will be discussed in another article.
The Beginning of Ethereum
Ethereum officially started on July 30, 2015 after being initially proposed by its creator Vitalik Buterin in 2013.
In June 17, 2016, a decentralized autonomous organization running on Ether, The DAO, was exploited and $50 million dollars’ worth of Ether was taken from its funds. This forced the Ethereum team to do a hard fork and created a completely different, new chain. This new chain continues on to be known as Ethereum (ETH). Those who did not want to use the new blockchain named the old blockchain Ethereum Classic (ETC).
How is Ethereum Different from Bitcoin?
The Ethereum team has made it clear that it is not in competition with Bitcoin; they complement each other within the digital ecosystem. Though they are both distributed pubic blockchain networks, Ethereum and Bitcoin were created for two very different purposes.
In our last article, we discussed that Bitcoin’s purpose was to offer a P2P electronic cash system—no intermediary or middleman. The Bitcoin blockchain tracks ownership of the Bitcoin cryptocurrency (BTC). The Ethereum blockchain works for an entirely different purpose: running programming code of decentralized applications, opening up a lot of opportunities for them to be developed.
ETH and BTC are both tradable cryptocurrency. However, the Ethereum team has stated that ETC was not really intended to be a currency or an asset. It doesn’t operate as a currency or payment. It is basically just “fuel” for the Ethereum platform or incentive for developers to write quality applications.
On the more technical side:
|Block Time||15 seconds||10 minutes|
|Coin Generation||Consistent||Rate * ½ every 4 years|
|Median Transaction Fees||$0.79||$3.04|
|Supply cap||18 Million/Year||21 Million|
What Makes Ethereum so Popular?
Along with Bitcoin, Ethereum is considered one of the pioneers in using blockchain technology. However, Ethereum goes beyond just using blockchain tech for bookkeeping financial transactions. It shows the world the full potential of blockchains.
Another reason why Ethereum has flourished as well as it has is because of its purpose and vision. With a simple visit to the Ethereum website, you can already tell that they truly value innovation. There, they provide users with the opportunity and the basics needed to start their own digital currencies. Users are encouraged to use their blockchain technology to develop all sorts of decentralized applications and Ethereum also provides a platform to raise funds for these projects.
Blockchain technology has the potential to change the way the world operates and Ethereum is making it easier for developers to do this.
Ethereum Current Value
As of this writing, ETC is now at Php 43,449.18!
Ethereum Price Chart from Ethereumprice.org*
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