As a representative of blockchain 2.0, it is similar to Bitcoin$BTC What is the difference? This article will unveil the "mystery" of Ethereum for you. 💡
1. The Prodigy of Cryptocurrency Circle—V God, the Founder of Ethereum✏️
Before we get to know Ethereum in depth, we need to first get to know its legendary founder, Vitalik Buterin, the genius prodigy known as "V God".
Vitalik has been exposed to programming since he was a child. He taught himself Bitcoin and started his programming career at the age of 12. In 2011, he attracted attention through a Bitcoin blog post, and later participated in Bitcoin community activities and communicated with the founder Satoshi Nakamoto.
Vitalik founded Bitcoin Magazine in 2013 to promote cryptocurrency and proposed the concept of Ethereum. He started developing Ethereum in 2014 and launched the mainnet in 2015.
Ethereum has disrupted the cryptocurrency market, becoming the world's second-largest digital currency with a market value of over $300 billion and providing a platform for building decentralized applications.
With the success of Ethereum, Vitalik has become one of the representatives in the field of cryptocurrency and is known as a "genius prodigy". His innovative spirit and forward-looking thinking have made him a leader in the blockchain field and have had a profound impact on the entire cryptocurrency industry.
2. Ethereum#Ethereum : Distributed computing platform ✏️
Ethereum can be regarded as a distributed computing platform, which not only has accounting functions, but also can run various programs on this basis.
For example, Bitcoin is like an early feature phone that can only be used to make calls, while Ethereum is like a smartphone that can run some small games, such as Tetris, in addition to making calls. In short, Bitcoin and Ethereum are different in function and use.
As distributed computing platforms, both Ethereum and Bitcoin adopt a decentralized approach, with nodes around the world jointly maintaining an open, transparent and tamper-proof ledger. The main difference between them is that Ethereum provides a Turing-complete scripting language that enables developers to create and use various applets on Ethereum.
Since these mini-programs need to run on the Ethereum network, nodes need to provide hosting and computing resources for this purpose. Therefore, when making transfer transactions on Ethereum, users need to pay a handling fee to reward these nodes.
In the Bitcoin network, both transaction fees and rewards are paid in Bitcoin;
In the Ethereum network, transaction fees and rewards are paid in Ether. Although the payment methods are different, the meaning is the same, which is to encourage nodes to participate in maintaining the network.
3. Smart Contracts: Ethereum’s disruptive innovation tool ✏️
Ethereum is not just a distributed computer, it also has smart contract capabilities, which makes it a representative of "Blockchain 2.0".
A smart contract is a self-executing contract, which means that when certain conditions are met, the contract will be executed automatically without human intervention.
for example:
Suppose you sign a lease with another person, and the contract stipulates that the other party will provide you with the house key after you pay one month's rent. By using smart contracts, you can create an automatically executed contract on the blockchain, and when you pay the rent, the contract will automatically execute and send you the house key without human intervention. This greatly improves the efficiency and security of the contract.
Bitcoin only ensures that transaction records cannot be tampered with, while Ethereum through smart contracts truly eliminates the reliance on "trusted intermediaries" and no longer requires third-party guarantees. In other words, the meaning is still: Bitcoin only ensures that transaction records cannot be tampered with, while Ethereum through smart contracts truly eliminates the "trusted intermediary" and no longer requires third-party guarantees.
Ethereum rose due to ICO, but also declined due to it. Smart contracts promoted Ethereum Token financing, and the price soared to $1,400 in 2017. DeFi exploded in 2020, and the Ethereum ecosystem improved, regaining its dominant position.
4. Conclusion ✏️
At the end of this article, we will review Ethereum, a distributed computing platform. It was created by the talented Vitalik Buterin. It not only has bookkeeping functions, but can also run various programs. Its unique smart contract function is the icing on the cake for Ethereum.
Imagine if you have the opportunity to develop a small program on the Ethereum network, what functions would you choose to develop? Please share your creative and imaginative ideas, and let us witness your wisdom together in the comment area. Don't forget to [like, comment and forward] to let your ideas spread to more people! 🤓
