What is Ethereum (ETH)?
Ether, launched in 2015, is a currency created by Ethereum technology. Similar to Bitcoin, Ethereum is a blockchain-based system. However, unlike Bitcoin's single use as an alternative currency, Ethereum can be used to build a variety of decentralized applications. From a transaction point of view, the focus can be on the feature of Ether to replace traditional currencies.
Ethereum was launched in August 2015. Initially, the value of Ether was about US$2.8, and then the price continued to rise steadily. Ether once rose to 21.5 US dollars, the current price is about 12 US dollars, and the market value is about 1 billion US dollars. Unlike Bitcoin, Ethereum has not yet established its status as a mainstream currency, so its development is vulnerable to major events.
Ethereum vs. Bitcoin: the main difference
- The emergence of Ether is not to replace currency, and Bitcoin is regarded as a new type of payment method. The initial purpose of Ethereum was to serve users on the platform, such as the development of Ethereum wallet applications.
- The supply of Ether is unlimited, while the supply of Bitcoin is limited (issuance ends in 2140). There is no maximum limit for Ethereum, and the supply of this currency is driven by its source code developers and miners.
- Bitcoin transactions take a long time: a Bitcoin transaction takes about 10 minutes to complete, while an Ethereum transaction takes only 15 seconds, which increases liquidity and volatility.
- Owner: Almost all bitcoins are mined by early miners, while Ether is obtained from crowdfunding, which means that this currency is mainly owned by the user group who bought it. It is estimated that in the next five years, this balance will lean towards Ethereum miners.
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**This article is not investment advice**