What is Ethereum (ETH)?
Ethereum (ETH) is a non-centralized open source platform that allows the creation of intelligent contracts through agreements between two parties, based on the block-chain technology, making it possible for developers to create and publish their own distributed applications that perform this kind of smart contracts. Ethereum provides a cryptocurrency called 'ether'.
The Ethereum project was created through the pre-sale of Etehreum in August 2014 by fans from different parts of the world. It is developed by the Ethereum Foundation, a Swiss non-profit organization, with contributions from great minds around the world.
You can exchange Ether between different accounts and it is also used to compensate the developments of the participating nodes for the calculations made. Ethereum was developed by Vitalik Buterin, a developer of cryptocurrencies. The development of Ethereum was achieved thanks to a collective funding platform, from July to August 2014, but the system finally came out on July 30, 2015. After a Blockchain (block chain) bifurcation (Hard Fork) in July 2016, there are two active Ethereum lines: Ethereum and Ethereum Clássic.
It should be noted that Ethereum is an Altcoin-type cryptocurrency. The Altcoins are cryptocurrencies that use large-scale projects and huge projection, for that reason they continue to grow in popularity among current cryptocurrencies.
The name of the coin, originally, has always been Ether, although currently both names are used due to the popularization of them respectively, especially in the mining sector since It had a great acceptance at the beginning.
Ethereum is a non-centralized platform that generates intelligent contracts, programs and applications that are executed exactly as they were created, without censorship or fraud. These applications work under the Blockchain technology, which is a large data infrastructure at a global level and with a lot of power, managing to move the value and represent the property. This system allows developers to generate new markets and options, store different types of debts and move investments such as future contracts, gambling market or similar.
We must bear in mind that with the Ethereum Cryptocurrency new utilities will be generated that even today have not been invented, all without intermediaries and risk-free. Beyond the currency, the most interesting thing of Ethereum are the intelligent contracts to guarantee with complete security and without the intervention of third parties the fulfilment of an agreement between two parties. The logic of the Ethereum code is simple, you can write in a couple of lines of code while you can build protocols such as currencies and reputation systems in less than twenty lines. Ether is a cryptocurrency used by Ethereum investors. Thanks to this system, it generates decentralized developers an incentive to ensure the quality of their applications. The Ethereum as a foreign exchange currency is what is more relevant for the social part. This is due to the ability that any person can buy a certain amount of Etherreum, and with the market playing in favour, obtain a high profitability in a short period of time. It is a trend that we see associated with the main cryptocurrencies that are currently more popular, and there may be many potential uses that they have, irremediably, its main use today is as an investment method.
However, there are businesses and companies that are already beginning to experiment and use Ethereum on a regular basis, with payments and transactions made through smart contracts with Ether, something that poses a promising future when the outlook stabilizes.
Should I invest in Ethereum Cryptocurrency?
In this case the comparison between bitcoin and Ethereum are immense, while the number of bitcoins to be created has a limited number of 21 million units, for Ethereum there is no limit. Working under blockchain technology but differentiated, the one developed for the alternative Ethereum offers a lot of versatility and is used by companies to create new programs and large-scale business projects.
The main approach would be if it is convenient to invest in Bitcoin or Altcoins, what cryptocurrency could unseat bitcoin?
The answer is simple, it should be a currency with an alternative or innovation as immense as the initial Satoshi Nakamoto Bitcoin project. One reality is that most Altcoins lose their value over time. They simply lose their value slowly (sometimes quickly), considering the amount of fraud that surrounds the Altcoins.
As of today, with a market capitalization of $ 69,623,873,016, Ethereum remains in the second place with the highest commercialization volume.
If you decide to invest in cryptocurrencies, Bitcoin is without a doubt the one that still dominates the market.