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Bitcoin has been the number one leader in the cryptocurrency world for a very long time. However, the popularity of other cryptos is slowly but steadily is going up. The closest to bitcoin’s popularity is ethereum. Although the value of ethereum is lower than bitcoin, this digital form of currency proves to be very attractive to own. Many are choosing to invest in it, avoiding the hype and significant uncertainties commonly associated with bitcoin. A little bit of research and a piece of sound advice can help everyone interested in investing in ethereum. If you want to get informed about this cryptocurrency, we recommend you read more at cryptomeisters ethereum guide to gain more profound knowledge.
What is Ethereum?
Although many compare bitcoin and ethereum, it is essential to know that ethereum is a different type of cryptocurrency. It has other features, goals, and even its technology is not the same as bitcoin.
Regarding similarities, ethereum is a decentralized blockchain network. The ether token enables users to make transactions, use and store tokens, trade, earn interest, play games, and many more other things. Many experts believe that ethereum is the next big thing in the world of cryptos. Ethereum supports decentralized exchanges, applications, and finance, which is another thing in favor of ethereum.
How does Ethereum function?
Same as Bitcoin, the ethereum network is connected to millions of computers in the world. Users are a part of “nodes” and not of one centralized server. The ethereum network is decentralized and protected from attacks, which makes it almost indestructible. If one computer cracks down, that will not affect anything because thousands, even millions of other computers, keep the network functioning.
Ethereum system runs the Ethereum Virtual Machine. Every node has a copy of that EVM, so any interaction needs to be verified first for the copies to be updated. All network interactions are considered “transactions” and get stored in the ethereum blockchain blocks. Miners are validating the blocks before allowing them inside the network. Mining for verification is called a proof-of-work method. Each of the blocks comes with a 64-digit code that identifies it. Miners use the power from their computers to find the code and ensure its unique. Their computers serve as proof of that, and they receive ETH for the work done.
ETH is a utility token, which means its supply is infinite. Ether keeps entering the digital currency circulation as a reward for miners. It is a cryptocurrency that will always be in high demand, so its value will likely never drop. That is one of the many things that makes it a desirable alternative option to bitcoin.
Ethereum brings numerous benefits and advantages to its users. The top ones are that it comes with complete anonymity and decentralization. Lack of censorship is another of its advantages. The list is very long, so if you are interested in diving deep into the world of cryptocurrencies, we recommend you explore ethereum and consider investing in it.
