What is Ethereum?

  • A genius Vitalik Buterin created a cryptocurrency which was ranked second after Bitcoin in 2014.

    Ethereum itself is a public peer-to-peer network or the blockchain, while the digital currency itself is called Ether.

    The purpose of creating Ethereum is to become a platform where smart contracts can be created and executed.

    Simply put, the purpose of Ethereum is to become a world computer.

    If you prefer Ethereum rather than Bitcoin, then you can use the MyEtherWallet digital wallet specifically made for cryptocurrency Ethereum.

    This digital wallet is also designed to be easy to use, making it suitable for beginners

    In addition, the application is website-based, allowing us to create a new digital wallet without having to download data on the blockchain as a whole.

    You can access it on the MyEtherWallet.com page, and you don't have to bother creating an account first.

    You only need to create a password on the main page and touch the "create wallet" panel to be able to use the digital wallet.

    You can then choose what features will be used to access the wallet, for example, Keystore Files (UTC / JSON), Metamask / Misk, Ledger Wallet, Digital Bitbox, Mnemonic Phrase or Private Key in the form of cryptographic passwords that must be stored properly.

    History of Ethereum

    Ethereum was first revealed to the public in 2013 in a whitepaper by Vitalik Buterin, a Bitcoin developer at the time.

    Because of the belief that Bitcoin is still narrowly used, Buterin intends to make a cryptocurrency that is easier to "adjust".

    The aim is to create digital currencies that not only function like Bitcoin but also have a smart contract feature that can be used to automatically determine when payments are made.

    Because this project cannot be applied in Bitcoin, Buterin created Ethereum in 2014 to realize his dream.

    Ethereum is the pioneer of initial coin offering or ICO.

    This was immediately received well in the community because at the time the project was under development, there were already orders from investors totaling 60 million tokens Ether.

    This started the journey of Ethereum, which was a huge development, the ecosystem Ethereum continued to be promoted while paying costs for the realm of legality and development.

    Finally, Ethereum was launched, and the development of the Ethereum platform began, with different levels of success.

    Basic Understanding Ethereum

    Ethereum is a programming language platform for storing crypto money assets with Ether (ETH) unit values.

    Ethereum adopts a Blockchain system that is used by cryptocurrencies in general such as Bitcoin.

    Blockchain was created in 2009 along with the creation of Bitcoin by Satoshi Nakamoto, where the internet revolution began with a unique code that cannot be changed (eternal).

    The blockchain is a decentralized digital ledger that keeps records of all transactions (blocks) carried out from the start of the technology was made.

    Ethereum was created with the aim of creating a platform where Smart Contracts can be run. Smart Contracts are self-executing contracts written in lines of code where the agreement in the contract can be carried out automatically.

    Smart Contracts allows payments instantly without delay, without hindrance, and without third parties (intermediaries) carried out on decentralized networks

    Ethereum Virtual Machine (EVM)

    Vitalik Buterin created the technology Ethereum is different from the Bitcoin cryptocurrency.

    Ethereum technology is Open Source technology, meaning it can be developed by any party in the world. In addition, Ethereum has an EVM (Ethereum Virtual Machine) that allows developers to develop and launch various applications that are integrated into the Ethereum network as transaction facilitators.

    EVM is a new network technology that operates on a decentralized network that is safe and transparent.

    All Nodes on the network will have the same information. Unlike server-based networks on certain topologies, which are very vulnerable to attacks on the server (Central Node) and will affect the entire client network.

    What's the Difference between Bitcoin and Ethereum?

    Many people wonder, what's the difference between Ethereum and Bitcoin? After all, cryptocurrency is the same.

    The fundamental difference with Bitcoin is, Ethereum can not only process transactions, but also complex contracts and programs. This flexibility makes Ethereum the perfect instrument for the blockchain-application.

    In addition, Bitcoin is intended to keep a list of balances and transactions on the blockchain, while the Ethereum blockchain is designed to store various types of data

    This data can be accessed and used by computer programs running on the blockchain Ethereum.

    These programs can be considered decentralized applications, or generally called dapps.

    That is, developers around the world can build and run decentralized applications on the blockchain Ethereum.

    The aim is to improve the financial industry, store personal information, governance with various other uses by using the transparent nature of the blockchain.

    Another important difference is the number, where the number of Bitcoin is limited to only 21 million, but the number of Ethereum is not limited to a certain amount like a currency in general.

    Ethereum has an average speed of creating 1 block in 12 seconds, while Bitcoin has an average speed of 1 block in 10 minutes. In other words, Ethereum is faster than Bitcoin.

    Ethereum has different fees depending on each computing power, while Bitcoin has a fixed fee.

    Ethereum uses Turing Complete Code which allows sending scripts with unlimited "loops", while Bitcoin does not have the script.

    Ethereum has a goal as a cross-platform transaction delimiter, which allows Cross-Chain transactions to be carried out. On the other hand, Bitcoin can only transact with other Bitcoin users.

    Where is Ethereum Used?

    Compared to Bitcoin which has been widely accepted by online and offline shops and recognized by governments in certain countries, the name Ethereum may be less audible. However, do not underestimate this cryptocurrency. Its use is mainly ogled by large corporations and corporations.

    Ethereum is supported by many companies who want to explore and apply the technology for Smart Contract applications. A group called "Enterprise Ethereum Alliance (EEA)" which was founded in February 2017, is known to bring together more than 80 large companies working on projects using blockchain Ethereum. Among the companies involved are multinational financial companies JP Morgan, giant corporations Microsoft and Intel.

    Ethereum supporter.jpeg

    The Blockchain, if run by the company itself, will give the company more control over its customer transaction data. With higher control, they will be better able to protect customers' privacy. However, this technology is arguably still in its infancy, so there are still many efforts needed to apply it in the world financial system that has been established so far