Ethereum is an application development platform built on decentralized blockchain technology. For an uninformed person, phrases about cryptocurrencies and blockchain are automatically associated with the most popular development on the blockchain — Bitcoin cryptocurrency. But blockchain is not Bitcoin, just like Ethereum has little to do with Bitcoin and has completely different goals. You can always buy ethereum.
It all started in 2011, when a young developer Vitaly Buterin became interested in blockchain technology and Bitcoin cryptocurrency. A couple of years later, having fully convinced himself of the practical benefits of blockchain, Vitaly creates technical documentation for the product, which is now known all over the world as Ethereum.
Ethereum’s cryptocurrency network is Ether. Ether, like bitcoin, performs the functions of a circulating means of payment. However, in addition to payments, it is used by application developers to pay commissions and services. The Ethereum mining process is generally similar to Bitcoin mining.
You can calculate the profitability of Ethereum mining taking into account electricity consumption. To do this, you can use a special mining calculator on our website.
At first glance, Bitcoin and Ether seem to be identical. But even though both crypts are built on blockchain, they don’t have much in common. The practical goals of using the Ethereum platform, which were announced in 2013, are completely different.
The main practical purpose of bitcoin is an anonymous, decentralized means of making payment transactions that are irreversible and open to all network participants. The blockchain of the bitcoin cryptocurrency is used for only one purpose — recording information about all transactions that have ever been carried out on the network and current ownership rights.
The Ethereum blockchain records information about program codes and ensures the operation of all decentralized applications developed on Ethereum.
Therefore, the main goal of Ethereum is to provide a decentralized platform for application developers.
Ether as a cryptocurrency
The main purpose of Ether (ETH) is the transfer of digital currency as an asset when performing the action enshrined in the Smart Contract. There are also Smart Contracts in Bitcoin, but in BTC their capabilities are greatly simplified.