What is Ethereum?
Ethereum is a decentralized Blockchain, capable of being a programmable software platform using Smart Contracts. Created by a group of founding developers in 2013, the most notable being Vitalik Buterin, Ethereum is the largest altcoin to date.
Unlike the Bitcoin network, which was created to strictly support the Bitcoin cryptocurrency, Ethereum aims to support a digital economy of Decentralized Applications (dApps) across many sectors. Ethereum has the largest ecosystem of developers building the Blockchain and its infrastructure. Being an open source platform, it allows for developers to build dApps on its system. The system is known as the Ethereum Virtual Machine (EVM).
Ethereum operates using automated Smart Contracts that are coded in the EVM, which perform specific functions when certain conditions are met. Smart Contracts have their advantages including the speed of execution, lack of human error or bias, and lower fees without the need for intermediaries.
Ethereum has its native coin called Ether (ETH). Ether is traded as a currency, but it is also used on the Ethereum network as “gas” to validate transactions and run the dApps.
ETH is inflationary and has an unlimited coin supply, however, recently introduced, there is now partial transaction fee burning with every transaction conducted on the network. With enough transactions, ETH could become deflationary.
Additionally, Ethereum is a platform that has the flexibility to support other crypto projects to create their own tokens. Developers can use the EVM to use and refine existing code, to create their projects and bring them to market.
Comparing Ethereum to Bitcoin
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