Nowadays, cryptocurrency is not a foreign term, but people still don’t have much idea about it. As cryptocurrency awareness increases, people want to know more and invest in them. When talking about cryptocurrency, the first name that emerges is the rate of Bitcoin. Moreover, there are many other types of cryptocurrencies available. Ethereum is one of them.
To add, Ethereum is not just only a cryptocurrency. It is also a decentralized network called Ether. So, instead of an alternative to fiat currencies like the pound, dollar, etc., it has a particular use. Furthermore, you can download the Bitcoin Era app to start cryptocurrency investments.
What is Ethereum? Is it different from Ether?
Ethereum is a computer network that runs applications. On the other hand, Ether is the name of the cryptocurrency which fuels the systems. There are mainly three layers of Ethereum. They are as follows.
- Ethereum Virtual Machine (EVM)
Firstly, the EVM is the decentralized system for the operation of smart contracts. These are also known as DApps or Decentralized Applications. The DApps of EVM helps in removing any kind of failure points. It is because the apps are developed on the Ethereum blockchain.
Secondly, Ether is basically a crucial part of the Ethereum network. It has the actual value. Along with that, it can become gas for fueling the EVM. Thirdly, gas is the processor describing the amount of the type of work completed by EVM. It is also similar to the kilowatt-hours for measuring expenditure. Just like kilowatt-hours, the price of gas is not fixed. Thus, they have adjusted accordingly so that it doesn’t become extremely high or low.
Ethereum’s role is not just limited to this, it also underpins the development of smart contracts and decentralized applications. The foundation of Ethereum says that the application runs smoothly as it is programmed. Also, there is no chance of censorship or downtime.
However, you can get confused as you can use EVM for apps like currency exchanges, e-commerce, etc. These are the following things that are built by using EVM.
- Document Notarization
- Games such as Ether Dungeon, Cryptokitties, and Acebusters
- Job Markets
- Messaging Platforms
- Verification of Decentralized News
- Social Networks
There are various uses of Ether. You can choose to use it like any other cryptocurrency after turning it into a fiat currency.
Difference between Ether with Other Cryptocurrencies
The biggest difference between Ether and Cryptocurrency is that it is not just a digital currency. Hence, there are several other factors that make it different from any other cryptocurrency. Currently, Ethereum holds the second largest market capitalization after Bitcoin.
Another crucial difference between Ether and cryptocurrency is block time. The block time of Ethereum is much higher compared to any other cryptocurrency. Moving on, the next difference is the rewards provided for solving the blocks. Compared to Bitcoin, the rewards are halved every four years. But, the mining rewards of Ethereum remain consistent throughout the years.
Is Ethereum better and more stable compared to other cryptocurrencies?
As of 2021, Bitcoin reached the highest value of around $65000. But, later, it lowered between $50K. On the other hand, Ethereum is still hovering at the mark of $3000 per ETH. Apart from that, Ethereum’s stability depends on various factors compared to other cryptocurrencies. Ethereum remained up with a 40% growth as of April 2021. On the other side, Bitcoin faced a loss of 5%.
Even leading investors and financial experts suggest that Ethereum cannot match the capital of Bitcoin. Why will you invest in Ethereum when you have other cryptocurrencies which are doing well?
How to Invest in Ethereum?
You can start your journey with Ethereum depending on your use. Ether investors, DApp developers, and DApp users will have different approaches then, and you have to install apps for moving the Ether from wallets to DApp you want to use. Then you can start buying Ether.
In conclusion, Ethereum has a multifaceted role to play. From being a blockchain platform to a cryptocurrency, Ethereum has a diverse role. Henceforth, the above information can help you understand everything about Ethereum. If you are keen to invest in it, this is the right time to register yourself on the trading platform.