Ethereum is a software platform which is decentralized and uses distributed computing in order to run smart contracts and distributed apps. It can be considered an extension of the blockchain technology used by Bitcoin. The added feature is that ethereum enables users to run smart contracts and develop distributed apps.
What is Ethereum?
Ethereum is a software platform which is decentralized and uses distributed computing in order to run smart contracts and distributed apps. It can be considered an extension of the blockchain technology used by Bitcoin. The added feature is that ethereum enables users to run smart contracts and develop distributed apps. A smart contract is very much similar to the legal contracts that we make in our real life, and the difference is that there is no need for third parties as the user can directly get the contract generated by entering the necessary codes. It cannot be tracked and is almost irreversible.
Ethereum coin [Ether]
Unlike Bitcoin, the Ethereum coin has two major uses. The first one is that of the normal use of any digital currency, i.e. for trade. Like any other virtual coin, Ethereum coin can be used to make transactions and even as an investment option. The second and most important usage of ethereum coin is for running applications and basically moving around in the ethereum. As mentioned earlier, the main aim of ethereum is to allow users to make smart contracts and create distributed apps. In order to do so, the users must have a particular sum of ethereum coin with them. Ethereum gas price is the amount every user has to pay, for utilizing the services of ethereum. The ethereum gas price is paid by the users in the form of ethereum coin.
Bitcoin and Ethereum coin
Bitcoin is a cryptocurrency, while ethereum coin is a token. This is because bitcoin has its applicability outside the realms of its blockchain and can be used like any other digital currency. Ethereum coin has its usage mainly concentrated within its application in the ethereum. It is more active within the community than otherwise. The supply style of bitcoin is also quite different from that off ethereum coin. Bitcoin is based on the deflation concept. No more than a particular number of bitcoins can be made, while more ethereum coins can be made, as it is based on the concept of inflation. The cap value of Bitcoin is 21M dollars, while that of Ethereum coin is 18M.
How to buy and store ethereum coin?
There are lots of places where we can buy cryptocurrency. When it comes to Ethereum coins the best place to buy them is Coinbase. It is very secure and is a buying and selling platform for almost all valuable digital currencies. When it comes to storage of coins in the digital world, security has to be quadrupled. As we know, Cryptocurrency is decentralized and there are no banks or other authorities to take care of our money. We are, in every way, own bank. Two ways to store ethereum coin are through Hot wallet and Cold storage. The former is an online facility to store money, while the latter is offline. Being offline, cold storage is the safer option as it protects you from hackers.