What is Ethereum? What is the difference between Ethereum and Bitcoin?

23 February 2023 447 Reading time: 54 second

Ethereum is a cryptocurrency that is based on blockchain technology. However, unlike Bitcoin, Ethereum's goal is not just to be a digital currency, but also to provide a platform for the creation of decentralized applications (dApps).

Ethereum uses a specialized blockchain to run pre-programmed smart contracts that can be used to create these dApps. Smart contracts are digital contracts that need to perform any transaction or fulfill any condition. Ethereum's smart contracts are designed to replace traditional contracts and work in a decentralized system.

Additionally, Ethereum created a standard known as ERC-20, which allowed for the existence of many Ethereum-based tokens. These tokens are stored on the Ethereum blockchain and can be used to represent digital assets, voting rights, and more.

Ethereum's potential is huge, particularly in areas like financial services, voting systems, smart contracts, and even gaming, as it enables the creation of decentralized applications.

Ethereum was founded by Vitalik Buterin in 2015 and has since become one of the world's largest cryptocurrencies. Ethereum's cryptocurrency, ETH, can be bought and sold on many exchanges worldwide.

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