1. What is Ethereum?
Ethereum is an open-source, decentralized platform that uses its own currency Ether. Ethereum allows Smart Contracts and distributed applications to built and run without any fraud, downtime, or third party interference. Ethereum also works as a programming language which runs on Blockchain and helps the developers to build and publish the distributed applications. Ethereum blockchain is designed in such a way that the transactions take place only when certain conditions are met. These rules are called Smart Contracts. Once these contracts are written, they cannot be changed.
Decentralized applications are applications that do not run on any central server. The founders of Ethereum wanted users to learn Ethereum and build on it. The coding language of Ethereum is called Solidity, which is used to build dApps. These dApps are going to compete with centralized apps in the coming future.
In 2016, Ethereum was split into Ethereum and Ethereum classic. The new Ethereum was created with an aim to protect it from malware attacks.
2. How does Ethereum work?
Ethereum is an open-source, decentralized, Blockchain-based platform that allows the users to make agreements and conduct transactions with each other without any middle man. Ethereum works with the help of a global network of computers that together work as a supercomputer. Smart contracts run exactly as planned, and they eliminate third party interference. Once certain conditions are met, the payments are made. All the agreements made on Ethereum are stored in individual blockchain ledgers, so there is no chance of data breach.
Ether is the cryptocurrency of Ethereum, which is used to incentivized programmers to run the Ethereum protocol on their computers.
3. How is it different from Bitcoin?
Bitcoin is digital money, and its Blockchain allows peer to peer transfers of money. Only 21 billion Bitcoins exist so that it can become a reliable store of value like diamond and gold. The price of Bitcoin fluctuates based on its supply and demand.
Ethereum’s coin value is called as Ether. Ethereum is a platform that enables the users to use smart contracts and to build decentralized apps on it.
The major difference between Ethereum and Bitcoin is that Bitcoin is a currency, while Ethereum is a ledger technology that companies use to build new programs. Both Ethereum and Bitcoin operate on the technology called Blockchain. Ethereum is a little more superior to Bitcoin in the sense that it allows the building of decentralized applications on top of it.
Besides, there is heavy support behind Ethereum technology what is called the Enterprise Ethereum Alliance.