In people's eyes, bitcoin is generally considered to be blockchain.Copy the code

Bitcoin is a cryptocurrency, and blockchain technology is a combination of complex science and technology. Blockchain technology and its disruptive potential make us realize that our future lives could be turned upside down because of it.

At present, around the block chain technology, these three circles are relatively hot, respectively, the chain circle, the coin circle and the ore circle.

In addition to bitcoin, the second most popular currency in the market is Ether. However, many netizens think that Ethereum is Ethereum, which is actually confusing the two.

Although the terms “bitcoin” and “ethereum” are often used together, the two are actually quite different. The only connection between Ethereum and Bitcoin is that both are successful blockchain applications.

Unlike Bitcoin, ethereum is not just a cryptocurrency, but it also has features that allow it to function like a large, decentralized computer.

Enter the theme

We know that Bitcoin is a peer-to-peer electronic currency system proposed by Satoshi Nakamoto in P2P website in 2008. It is essentially a virtual cryptocurrency, with a decentralized principle that allows it to be traded around the world. And in the absence of state machinery to provide credit endorsement conditions, they can be trusted.

Advanced technology and the rarity of 21 million bitcoins made people realize their value and quickly circulated around the world. To become the world’s largest cryptocurrency.

If someone were to ask why a string of encrypted characters is worth so much?

We can go back to the early days of shell barter, and why shells became general equivalents. You know the shell itself is not valuable, why does it become valuable? VX:FIL37373

What is Ether?

Ethereum can be thought of as a distributed computing platform that not only keeps accounts but also runs programs on top of them.

Bitcoin is like the old mobile phone. It only has phone calls. Ethereum is like PHS phones back in the day. In addition to making calls, ethereum can also run small games like Tetris.

A distributed computing platform means that Ethereum, like Bitcoin, is decentralized, with nodes around the world keeping accounts and maintaining an open, transparent and immutable ledger.

But unlike Bitcoin, Ethereum offers a Turing-complete scripting language, which means we can develop small programs on ethereum.

These little programs need to be hosted and run by the nodes of the Ethereum network, and we also need the nodes to keep accounts when we transfer money on Ethereum, for which we need to pay these node fees. In the Bitcoin network, we transfer money and pay fees in Bitcoin, and the system rewards miners in Bitcoin; In the Ethereum network, the fees paid and the rewards the system gives to the nodes are Ether. VX:FIL37373

If Ethereum is simply a distributed computer on which you can run programs, that’s not enough to make it “blockchain 2.0.” Ethereum’s real killer is its ability to function as a smart contract.

What are smart contracts? Simply put, smart contracts are contracts that can be executed automatically.

Here’s an example:

Zhang SAN and Li Si each bet 100 yuan on the winner of tomorrow’s football match between Germany and Brazil. If Germany wins, John gets 100 yuan; Conversely, Li Si wins Zhang SAN’s 100 yuan; If it’s a tie, no money. If the result comes out the next day, one of the losing side goes back on his word, the other side is helpless, after all, words have no basis, more unlikely to go to court.

With smart contracts, John and John can write the rules of the game on Ethereum and then transfer “money” (coins) to their smart contract accounts. The next day, the smart contract will automatically capture the news of the winner on the official website. If Germany wins, all the “money” (coins) will be automatically transferred to Zhang SAN’s account; if Germany loses, it will be automatically transferred to Li Si’s account; if it is a draw, it will return to the original way.

We can see that bitcoin only realizes the imtamability of transaction records, and ethereum, with its smart contracts, can truly “trust intermediaries” without the need for third-party guarantees.

In essence, Ethereum aims to bring the decentralized, open, and secure features of blockchain technology to almost any computable realm.

Ethereum is not just a tradable cryptocurrency, its real value lies in its purpose. Ethereum is designed to give owners access to globally distributed computers powered by thousands of nodes. VX:FIL37373

Of course, decentralized computers are slow and expensive because every operation must be performed by every node in the network.

In comparison, the cost of a centralized computer is lower, but if a centralized computer (server) fails or is hacked, all connected clients are affected. A decentralized computer, on the other hand, only crashes when every node fails, so it is always available. As long as there’s a network, there’s Ethereum.

It is worth mentioning that The founder of Ethereum, Vitalik Buterin (V god for short). Beginning with letters) is a veritable post-90s born in Russia in 1994. He started working on Bitcoin when he was 17 and published a white paper on Ethereum when he was 19. With young promising to describe too much, with the current trend of the word is that we this is the era after the wave. VX:FIL37373

How do ordinary people get bitcoin, which makes everyone crazy about Ethereum? Cloud computing power can now be used to mine, with low cost, low risk and stable returns.

Want to make money safely in the coin circle, I’m afraid now only mining! Mining is the most basic foundation of blockchain, and mining is undoubtedly the lowest cost, the fastest way, there is no one.