Know What is Ethereum, Bitcoin’s Strongest Competitor

Many think that Bitcoin is the only cryptocurrency. Even though there are hundreds of other types on the market, one of which is Ethereum. What is Ethereum and why do many consider it to be Bitcoin’s strongest competitor?

There are some interesting facts that we don’t know. For example, the fact that Ethereum is not a currency, who invented it, and much more. For more details, see the following discussion.

Also Read: Crypto Calculator: Explanation and How to Use It

What is Etherum?

Ethereum first appeared on the market in 2015, which is not actually a currency, but rather the name of a blockchain system. The resulting cryptocurrency from this system is called Ether and has the symbol ETH.

Vitalik Buterin, the founder of Ethereum, is a young Canadian-Russian descent. Because of his interest in the blockchain system, the young man then came up with the idea to build Etherum.

Unlike other blockchain systems, this type of blockchain system has much better capabilities. The reason is that this system can be programmed so that it allows developers to build new types of applications from the system.

Not a few have tried to compare between Bitcoin and Ethereum because they both use blockchain technology. Unfortunately Bitcoin and Ethereum have different purposes so they can’t be compared with each other.

Advantages of Ethereum

This blockchain system has become one of the most valuable crypto assets. It is only natural that many investors decide to collect Ether over Bitcoin. So what are the advantages of Ethereum? Check out the points below.

1. More Promising

Ether is considered more promising compared to other cryptocurrencies. Even this digital money is predicted to be able to compete with Bitcoin. One reason is that investors and traders are getting fed up with Bitcoin.

2. Similar Features to Bitcoin

In terms of features, it has almost the same features as Bitcoin because both are able to create cryptocurrencies. So Bitcoin activists do not need to make significant adaptations if they want to switch to Ethereum.

3. Smart Contract

Smart contracts aim to ensure that transactions actually occur according to the agreement. In addition, this feature is also effective in preventing fraud from one or both parties.

4. More Affordable Cost

Ethereum 2.0 which is the latest evolution of Ethereum offers a faster network at a lower cost. Making digital money is also no longer done by mining but making sure.

Disadvantages of Ethereum

Although it offers various advantages, it is undeniable that this blockchain system has several drawbacks. Here are some drawbacks to be aware of:

1. High Volatility

Ether is a currency that has a high level of volatility. The price of this currency can rise drastically due to certain things. However, the price can also fall freely for other reasons. In-depth analysis is needed to avoid big risks when investing.

2. Complicated Programming Languages

Another thing that concerns Ethereum is the programming language which is quite complicated. This blockchain uses the Solidity language so that it provides its own challenges for beginners. What’s more, finding Solidity tutorials isn’t easy either.

3. High Transaction Fee

Unfortunately, this blockchain system imposes transaction fees that are quite high so some developers decide to switch to other blockchains that offer more stable transaction fees.

Not familiar enough what is ethereum? Visit Media Authority, the leading crypto site in Indonesia and find a variety of other interesting information. Also get the latest updates about the world of cryptocurrencies on this site.

Photo by Sam Lion from Pexels

Leave a Comment