Bitcoin was the first cryptocurrency introduced in the year 2009. It was Bitcoin that brought the cryptocurrency market to a revolution. Over the years, when Bitcoin gained popularity, its purchasing value became unaffordable for the investors. This gave rise to the invention of cryptocurrency coin called “Ethereum”. Ethereum ranks one of the top cryptocurrency traded in the market after Bitcoin. Ethereum was predominantly created as a competitor to Bitcoin with additional features as explained below.
Ethereum Virtual Machine
Ethereum, with its token/currency code as “ether” works similar to Bitcoins with few differences. In Ethereum, instead of mining for Bitcoins, miners work to earn Ether. Ethereum also works on the Blockchain technology that is decentralized, but the concept of Ethereum Blockchain is quite different. The Blockchain system in Bitcoin focuses on tracking the ownership of bitcoin currency in a transaction. While in Ethereum, it aims at running a powerful computational algorithm for any decentralized application.
With an aim to allow the developers to write a robust algorithm and cryptographic codes for governing the Blockchain and other backend transaction, Ethereum provides an opportunity for the developers to create applications or agreements for new rules, additional steps, procedures, or whatever operations that developer prefers.
When it comes to trading Ether, users can buy, hold and save Ether and sell when profitable. They are also widely accepted by retailers in the purchase of goods and services.
Overall, Ethereum functions for two purposes in the cryptocurrency market. 1. Permit developers to create and run applications 2. Trade Ether currency.
Ethereum Virtual Machine
The Core innovation of Ethereum is its Smart Contracts. Smart Contracts refers to contracts coded and uploaded to the Blockchain. Smart Contracts are structured with the concept of “If and Then” statements. Meaning, when certain “If” conditions are met, the program runs as per the terms of the contract. The contracts written are compiled into bytecode which can be read and executed by the Ethereum Virtual Machines. Therefore, different applications can be performed in the Ethereum platform.
As every node in the network record the transaction through Blockchain, there is no scope of alteration of any details, contracts, etc. If any attempt is made to do so, it would be noted in the Blockchain.
Further, if there is an error in coding or in developing an operation in the smart contract, the Blockchain will still perform as per the terms of the contract which could create chaos. For this reason, it is always better to take assistance from Ethereum Code Ltd which shall assist and authenticate your codes and perform actions as desired.