Topic: Ethereum, blockchain for smart contracts. Ether and Bitcoin differences (Read 52 times)

Ethereum. As we all know in January 2009, Bitcoin and its implicit technology, Blockchain, was born. The development of cryptocurrency has been exponential since its appearance, nor is the blockchain far behind.

The future of Blockchain is promising, it has applicability in most sectors. In a verifiable, transparent and permanent way, distributed database allows executing transactions between two or more parties
Vitalik Buterin, is the name of the Russian who created Ethereum in 2014, taking advantage of the characteristics of the blockchain. He has been able to give Blockchain a twist. He goes beyond digital currencies, by creating a platform capable of developing applications for any contractual field.

Ethereum and smart contracts, much more than a digital currency
The Ethereum concept not only encompasses the platform that sustains the Ether cryptocurrency, it is much more.

Ethereum is a protocol, a platform, a programming language and a cryptocurrency (Ether) where the main objective is the creation of smart contracts or smart contracts.

Smart contracts are applications that operate like computer programs and are executed through blockchain, in a decentralized way. The Ethereum platform is a worldwide network of devices / computers that develop these smart contracts under immutable shared consensus rules.

A smart contract is a software code that will execute itself under certain circumstances agreed between the parties in advance. They usually include a financial transaction. For example, if the value of oil falls to a fixed price, an amount of money is invested in a certain action.

Smart contracts will provide financial services in the future without the need for intermediaries. They have endless possibilities: online voting systems, insurance, betting ... Smart contracts incorporate the main characteristics of Blockchain:

 Once created they cannot be modified, because they are immutable,Safe, they do not depend on a central authority, but on the distributed network where security is greater.
Transparent, all information is stored. You can consult but not modify previously generated transactions.
The platform's programming language is «Complete Turing», it can be used to program contracts for any type of transaction or application.

In short, Ethereum uses the Blockchain to become a decentralized global computing platform capable of creating smart contracts. These computer applications include not only cryptocurrencies, but anything that is programmable. Smart contracts are used for any type of transaction, they are executed by themselves, without the need for human intervention
If Bitcoin is a blockchain platform where transactions with digital currencies are carried out. Ethereum development https://www.blockchainx.tech/erc20-token-development is a blockchain platform where transactions of anything are made, it allows to transact anything that is programmable.

Ether, the digital currency of the Ethereum platform
The Ether cryptocurrency is the fuel that maintains the platform. For smart contracts to be executed, it is necessary that they be paid in Ethers. The higher the price to pay, the more complex these smart contracts are. Ethers are therefore created to facilitate transactions on the platform.

The digital currency Ether, in addition to serving as an exchange currency for the payment of the operations that is executed, serves to incentivize the miners who contribute their resources to the decentralized network.

The miners are users who are in charge of verifying that the transactions are correct and that no type of fraud is committed. Ether mining is similar to Bitcoin mining.

Ether characteristics. Differences with Bitcoin
Behind bitcoin, Ether is the second most used digital currency. Some experts predict that it will overcome it. These are some of the characteristics of the Ethereum digital currency compared to Bitcoin:

Both Bitcoins and Ethers can be used as coins. They have software portfolios or Apps (wallets) for the purchase of products or services and also function as deposits (savings).
Each cryptocurrency has a procedure to carry out communications and checks on its platform, Ether and Bitcoin are a protocol.
The two cryptocurrencies use Blockchain technology, so that previously executed transactions cannot go back.
The main difference of the development of Ethereum https://www.blockchainx.tech/erc20-token-development cryptocurrency from Bitcoin is that there is no maximum limit of Ethers in circulation. Bitcoin technology has a limitation on the issuance of 21 million virtual currencies. The limitation makes Bitcoin a clearly deflationary currency. Ether therefore has a more consistent basis to replace traditional currencies.
The confirmation time of the operations is 16 seconds in Ethereum and 10 minutes in Bitcoin.
Ether uses 18 decimal places and Bitcoin 8.
Ether and Bitcoin, similarities and differences
Ether and Bitcoin, similarities and differences

Conclusions and some Ethereum problems
These are some of the problems linked to the Ethereum platform:

The main problem attributed to the platform is that the nodes are very focused on the creators. If the nodes belong to few people, the system loses one of its main characteristics, decentralization. A possible manipulation is within the reach of a few or a cyber attack on the creators.
Immutability of smart contracts. Contracts cannot be modified, this is good for confidence in the system. But any plan change or mistake implies that it cannot be corrected.
Difficulty in linking external services with the smart contract. For certain services, the action required, once the conditions of the contract have been fulfilled, requires human intervention.
The main problem is the first, but it is totally solvable with the passage of time. Since the number of nodes will be increased and real decentralization will be a fact.

Blockchain's employability is huge. Once its applicability in cryptocurrencies (Bitcoin) has been validated, a distributed platform capable of developing an infinite number of economic and financial applications has been created. Smart contracts generated through the development of Ethereum https://www.blockchainx.tech/erc20-token-development can cause a disruptive change in digital business relationships.