An explanation of the currency of Ethereum - Ethereum Classic - and Ethereum 2.0 - Cryptocurrencies
?What is the Ethereum coin
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Ethereum is another cryptocurrency like Bitcoin, Tether, Litecoin, etc.
Ethereum is actually the largest digital currency and is an open platform based on the blockchain technology that allows developers to implement decentralized applications on it.
This means that it is not operated by any government, people or even authority, but is used by a large number of computers around the world.
However, everyone can control it.
According to the Ethereum website definition: “Ethereum is a decentralized platform for implementing smart contracts.
Therefore, there is no possibility of malfunction, censorship, fraud or third party interference in the implementation programs of this network.”
The largest digital currency is ethereum based on a market value of more than 380 billion dollars.
It is the largest and most privately traded coin managed. In the last previous years of updating the currency to get new developments working at the highest level in a network such as Blockchain.It
was ranked among the list of the best types of digital currencies and the second highest trading after Bitcoin.Just entering into currency trading to invest using a site you will notice the name of the most The level and price of Ethereum currencies is higher than other digital currencies.Be sure to read: The best cheap digital currencies have a future for investment
?What is Ethereum coi
What is the purpose of creating an Ethereum coin?
The purpose of the Ethereum digital currency is to decentralize all industries and companies and create blockchain-based currencies.
Before Ethereum, there was Bitcoin .
Bitcoin is called the first generation of the blockchain, and here means the first generation, that is, it is the first digital currency launched on the blockchain.
This network was formed to facilitate the financial and banking work and was able to achieve great fame.
Ethereum introduced the second generation of the blockchain and was able to improve the capabilities of the blockchain level.
The cryptocurrency ether in which the money is spent with little fees and not large compared to other currencies is the best cryptocurrency and also the most complete level of security.
In addition to the process of opening an account for trading in cryptocurrencies, it is not difficult, but it requires more funds in order to trade in Ethereum currencies, due to the high price of buying Ethereum currencies today.
Make sure to read: Best and Trusted Cryptocurrency Trading Platforms
What is the purpose of creating an Ethereum coin?
?How did Ethereum start and who invented it
The history of Ethereum is related to Vitalik Buterin, the first founder of the Ethereum digital currency.
In 2013, Vitalik sent a sample Ethereum coin to his friends to express their opinions and criticisms regarding his theory; But he did not receive a response.
He announced his theory in 2014 and launched blockchain technology in 2015.
Mihai Alessi, Anthony Di Iorio and Charles Hoskinson along with Vitalik and Joseph Lubin were the founders of this network.
Buterin tried to improve (Bitcoin Blockchain) and implement smart contracts without middlemen and decentralized applications in his Blockchain.
After some time, he unveiled the original cryptocurrency “Ether”.
Vitalik, the founder of Ethereum, said in one of his interviews that he plans to keep Ethereum as a blockchain-related platform, focus on its technical issues and build a new world for it by improving its security.
?How did Ethereum start and who invented it
Features of Ethereum coin
Since there is no third party to manage and monitor it, network data cannot be changed or deleted under any circumstances.
The smallest change to this platform must be approved by all of its members.
The distribution of information among all users and the general nature of the data eliminates the possibility of any control and fraud in this system.
Since there is no server and central organization, and people's information is stored in their personal system.
The lack of data collection greatly reduces the possibility of hacking and data theft.
And in order to penetrate its network, access to private computers is required, the cost of this process is very high for hackers and it is practically impossible.
The use of encryption systems has also increased the level of network security and eliminated the possibility of forgery and fraud on this platform.
This currency is unstoppable, always active, and one of the important features of this network is always internet connectivity.
Make sure to read: 10 countries that have banned cryptocurrency trading, including Arab countries
Features of Ethereum coin
Difference Between Ethereum (ETH) and Bitcoin (BTC)
Many people think that this ETH token is a digital currency like Bitcoin and they are not different.
These two have similarities, but their purpose and application are different.
Below, we will examine the differences between Bitcoin and Ethereum and their similarities.
Similarity:
Both systems are based on blockchain and operate in a decentralized manner.
Both use peer-to-peer (P2P) payment systems to transfer currency and data.
Both currencies are public network where users can work on their platform without getting permission.
Cryptocurrencies in both systems are obtained based on the mining process.
Each has its own blockchain.
Transactions, deals and contracts take place on the platform of both the Blockchain without intermediaries and intermediate costs.
The security is very high due to the encryption in both networks.
Transactions in both networks are non-stop and irreversible.
The differences:
The Ethereum (Ethereum Blockchain) is just a Bitcoin cryptocurrency ownership tracking system and a global instant payment system.
Ethereum is a world to power thousands of decentralized applications and contracts.
Cryptocurrency used for transactions on the Ethereum platform; It is called ether.
The block in eth is generated once every 14 seconds; This process takes place in the (Bitcoin Blockchain) once every 10 minutes.
In the Bitcoin network, 7 transactions take place every second; Meanwhile, the top 16 transactions were recorded every second on the Ethereum platform.
Due to the primitive nature of the scripts, it is not possible to implement a smart contract in the Bitcoin network (this is possible in eth).
The value of Bitcoin and Ether varies.
Bitcoin is supplied with a set number of 21 million; While there is no supply limit for cryptocurrency in Ether.
Difference Between Ethereum (ETH) and Bitcoin (BTC)
Ethereum has different uses, the most important of which will be discussed below.
1- Creating decentralized software
Programmers and web developers can implement decentralized applications (DApps).
Decentralization means that the power of the program and the information of its users is not in the hands of any person or organization, and there is no way to censor the data in these applications.
That is, the lack of possession of a person and the absence of a central institution has caused that the information of users of this network is not stored on the server of any person or organization and that they are safe from hacking and information theft.
When you use programs such as YouTube, Twitter, and other social networks, your personal information, writing, photos and videos are stored on the central server of this program.
In this case, with any security threat to the group's servers, your information is also at risk.
Also, you have seen many times that these programs have deleted content they did not like or asked you to change it.
Decentralization of information will also solve these problems for users.
Make sure to read: Is cryptocurrency trading halal or haram?
?What are the uses of Ethereum coin
2- Implementation of smart contracts
Smart Contracts - Ethereum smart contracts are a type of Ethereum account.
This means that these accounts have a balance and can send transactions over networks.
However, it is not controlled by other people.
Smart contracts operate automatically and cannot be changed or discontinued in any way after they have been entered into.
?How to recover and protect digital currencies
In other words, these are contracts that have a full and accurate performance guarantee.
Also, there can be no broker as a third person in this type of contract.
These contracts are written in the Solidity programming language.
Implementation of smart contracts in Ethereum currency
?What is Ether Token (ETH)
The main idea of the digital currency Ethereum came from the cryptocurrency Bitcoin The purpose of the cryptocurrency Bitcoin was to manage the affairs of funds and transactions in a decentralized manner without the presence of intermediaries.
But the purpose of Ethereum goes beyond Bitcoin.
The Ethereum cryptocurrency is a decentralized blockchain-based structure that provides a variety of financial and non-financial services.
People can trade and develop their business in this network.
In fact, Ethereum cryptocurrency is like a central office that stores all transactions, contracts, and other activities with details and full history.
Then it makes it available to everyone in the networks.
Any Ethereum account can contain some Ether and send it to other accounts.
When sending tokens on the Ethereum cryptocurrency networks, some Ether must be paid as a fee.
The smallest unit of aether is called a 'wei' which is equivalent to 10-18 aether. Ether is traded under the symbol ETH.
?What is Ether Token (ETH)
After its launch in 2016, the Ethereum cryptocurrency was able to operate according to its predetermined plans.
But in 2016, a project called DAO was introduced, which presented its goal to revolutionize the network.
The DAO was considered a decentralized investment fund managed and managed by its investors.
The DAO worked by giving buyers tokens, which they used to obtain voting rights to the fund. The reception for this project was much more than expected and attracted about $168 million in seed capital initially.
Everything was going well, but on June 17, 2016, an unknown hacker exploited a security bug in the DAO code and transferred more than 50 million US dollars to his account.
This incident was almost a disaster and had many negative effects.
But one of the rules included in the DAO contract gave the developers about a month to come up with a solution.
According to this law, the request to transfer the Ethereum cryptocurrency was submitted after 28 days.
There were two ways for developers: hard fork and soft fork
A hard fork is a term commonly used for cryptocurrencies, simply called software update.
In fact, the programmer helps to improve and update the previous program with the changes he makes in the project, this phenomenon is called a fork. Cryptocurrency split occurs when there is a specific problem with the network or when there are problems with the rules.
Initially, the idea was to soft fork eth to get rid of this problem, but the developers have proven that soft fork will expose the network to the risk of DDoS attacks and therefore is not a good or suitable solution.
So the only solution left was to get rid of Ethereum.
After the hard fork, this coin was renamed to Ethereum Classic with the symbol ETC on exchanges before the hard fork, and the new currency took the name Ethereum Crypto.
In very simple terms, Ethereum Classic is Ethereum on the old blockchain.
?What are Ethereum Classic coins
The developers decided to make other new changes in the blockchain with the aim of increasing the speed of approval of transactions and also reducing fees.
The Ethereum cryptocurrency was launched in 2015 and today, with a market size of over $380 billion (August 1400), it is considered one of the largest cryptocurrencies in the world.
Despite this, the developers of the Ethereum coin want to upgrade Ethereum within the next two years.
The new and advanced version of Ethereum is called Ethereum 2.
The Ethereum 2 coin is an advanced version of Ethereum and it can make the original Ethereum blockchain more scalable and improve its user interface.
The Ethereum 2 cryptocurrency is an evolution from the current version, i.e. version 1.0, of the Blockchain towards the network with the following features:
higher speed (TPS)
Transaction processing efficiency
Energy efficiency (lower electricity consumption due to the use of PoS algorithm)
high protection
scalability
A new version of the Ethereum cryptocurrency has always been in the sights of this project, but it took several years for its features to come out.
The main reason for this is that scaling a blockchain securely and decentralized is a very difficult task.
Fortunately, the Ethereum 2 cryptocurrency aims to solve this problem by implementing some important features.
These new features will introduce several key differences from the current version of the Ethereum cryptocurrency.
?What is the future of Ethereum
What is ethereum coin? Ethereum is one of the popular cryptocurrencies that has always been in the spotlight.
Many analysts consider the future to be bright and consider it a suitable long-term investment option.
But it should be noted that any further investment in cryptocurrency has to work through thorough research.
Unfortunately, many people enter this field without sufficient knowledge and under the influence of others, who end up suffering huge losses.
We recommend that you use the analysis tools to predict the market situation and the future of Ethereum
Frequently Asked Questions
?What is Ethereum
The Ethereum cryptocurrency is a free and public blockchain-based system with its own browser, programming language, and payment system. This coin does not have a single central console and is controlled by thousands of massive computer systems.
?What is the difference between Ethereum and Bitcoin
Technically, there are many differences between these two cryptocurrencies. But the most important difference between the two relates to their goals and capabilities, Ethereum is a platform to run thousands of decentralized applications and contracts.
?What is the future of Ethereum
Ethereum is one of the popular cryptocurrencies that have always been in the spotlight. Many analysts consider the future bright and consider it a suitable option for long-term investment.
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Ethereum cryptocurrencies are today the currencies with the highest price in terms of market value above 380 billion dollars compared to other currencies and the highest level in terms of the level of security, and it is profitable for those who want to start trading, but it contains risks.
There is another thing, the market value ratio rose today to the highest level due to the rise in the price of the dollar, which led to the rise of the highest market value exceeding 380 billion dollars, making it the highest level in terms of the price level, market value, buying currencies.