Ethereum – The new cryptocurrency that shades Bitcoin

Currently there are more than 750 different cryptocurrencies , but for some reason the most sounded in recentEthereumBitcoin has been years. However, it seems that very soon we will have a new rival, and it is Ether.

Since the beginning of 2017 the value of this cryptocurrency has not stopped increasing, reaching up to 4250% , which has made it the second best valued virtual currency behind the already known, and so popular, Bitcoin .

Glossary of the content of the article:

In fact, many go back to New Year’s Eve, looking back and wondering how they would be now if they had decided to invest in étheres at that time.

By then ether had a share of just 1%, so it was very unlikely that there were people interested. Just six months later the share of ether is 28.5% .

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In the next post we will make an analysis about this cryptocurrency, in case you do not know it yet.

Read our article on how to mine cryptocurrencies

Ethereum: the Ether platform

If you still do not know Ether, it’s because you do not want to, because it seems that we are dealing with the fashionable virtual currency, and which is starting to be a threat to the well-known Bitcoin .

The rapid growth that has led in the last six months is what has made it now in the spotlight of many. So if you are also interested in knowing and knowing more about this cryptocurrency, you can read the following article.

Ether is a cryptocurrency that is linked to a platform that is known as Ethereum and, unlike other virtual currencies, the Ether can only be used within this platform . As for its origins, to say that Ethereum was launched in August 2014.

Ethereum is a downloadable software with which you can build decentralized apps. These apps operate without interruptions or interference from third parties.

In addition, everything is regulated by the Swiss association of Ethereum Foundation .

Initially the Ethereum protocol was created to try to be something like an improved version of the Bitcoin cryptocurrency, overcoming the limitations in its programming language and providing more advanced features.

This Ethereum platform works with the blockchain technology , which is as safe as it is discreet, and that is an advantage because it allows us to create digital markets and leave some instructions on how we want a certain amount of money to be handled in a specific situation.

For example, what moves certain euros when the currency exceeds another, and it will do it automatically and without further human intervention.

Ethereum

On the other hand, you should know what the Ethereum platform is not free , so you’ll have to pay if you want to download it. Of course, the payment must be done in the virtual currency, in ethers.

Every action carried out by the software has a cost, and this is done precisely so that the decentralized apps, also known as dapps , that are created have a certain quality.

The Bitcoin alternative?

Many believe that yes.

At this time it seems that the Ether is an alternative to Bitcoin for various reasons. For now, you only have to see its growth, more than 4000% in less than six months.

On the other hand, the share of Bitcoin has been reduced while that of Ether is at 28.5% .

To give you more reasons, Bitcoin has stopped innovating so it is no wonder that other cryptocurrencies come with force and can threaten what was once the most popular virtual currency. In fact, the currency itself is already reaching its maximum capacity.

As an advantage of Ethereum with respect to Bitcoin we can highlight the possibility that it has to allow the creation of dapps .

But, what we can most interest are the Initiative Coin Offer (ICO) offered by Ethereum, which makes it easier for more entrepreneurs to get financing. Let’s see how it works.

How does an ICO work?

If you are familiar with the term crowdfunding you can surely understand what an ICO is, because basically it is a way of collective financing.

For you to understand, an entrepreneur who has an idea creates a cryptocurrency through the ICO (initial offer of coins) and then sells them to get the money you need to make your business become a reality.

In this case, the advantage of a startup is that all those who buy the cryptocurrencies will not receive shares of the company, in case they finally get carried out.

So, why would they want to buy them if they are not going to get anything in return? Very easy, because when everything starts and the startup consolidates you can exchange the virtual currency for real money.

Obviously there is a lot of distrust and many doubts about whether companies can return the money or if you are ICO are collecting excessive figures.

On the other hand, it is important that you have this information and that although ICOs are not illegal, they are not regulated either .

If you are interested in buying a cryptocurrency created by a startup through an ICO you will need to have étheres.

In addition, the advantage of this cryptocurrency is that it already has its own platform, so making these transactions will be much easier for you.

Although this issue generates a lot of uncertainty in the environment and there are many speculations at least we can expect the value of the ether to remain on the rise.

Are cryptocurrencies safe? How to avoid risks?

Speculations are very common, especially in this type of highly volatile markets. However, if you want to bet on the high profitability shown by Ethereum in recent months it is interesting that you have precautions when investing.

As we already know, cryptocurrencies do not have the support of any agency or bank , because they are decentralized and this characteristic causes them to suffer important price fluctuations, especially when certain circumstances exist.

In fact, recently we gave ourselves a shock with an unexpected and shocking drop in the price of ether, which suddenly and without warning led to a price decrease of 96% in a matter of minutes .

Luckily after about 1 hour everything returned to normal.

Obviously, after the scare, there was nothing more to prove that this remarkable drop was the result of a specific event, which in this case was the sale of 100,000 units of Ethereum worth 30 million dollars , which caused a devaluation of the cryptocurrency.

In this case the cause was a hacking of an account that had stored this amount of etheres, and someone who placed them all for sale to try to get immediate profits.

As a positive part of all this is that there were those who had automatic purchase orders and benefited from what happened during that hour, multiplying their investment.

The worst thing is that the capitalization of Ethereum is currently valued at around 35,000 million dollars , so this transaction only accounted for approximately 0.08% of the total.

Imagine the great impact for such a negligible percentage, there is no doubt that the quotation of the ether is very fragile and that it is advisable to take precautions.

As security measures, both for storing etheres and for other cryptocurrencies is recommended to have them stored on a computer without an Internet connection, since you can always suffer remote attacks and happen to us as this person, with 100,000 stolen from your wallet.

If you take the necessary precautions you will avoid exposing yourself to unnecessary risks, so keep your crypto currencies off the Internet and connect only when you want to make a transaction.

In the same way you could also use an external pendrive for storage and connect it only when you want to operate, it would be a good solution to avoid hacking .

The advantage of smart contracts

One of the great advantages of Ethereum is that, in addition to offering a virtual currency, it allows to use blockchain to create intelligent contracts . As an advantage, these contracts are immutable so they can not be modified or much less falsified.

Ethereum allows us to create a distributed software without limitations , which will be executed in the chain of blocks and that allows to reach a payment execution.

In other words, an intelligent contract is a software code that works by doing something determined when something specific happens and it can not be manipulated in any way .

Taking into account this we can affirm that smart contracts are safe. In addition to that they are executed in a distributed network and not in a central server so the security in any case will be also greater.

The applications of the contracts in the blockchain or chain of blocks , is that we can use them to do many things that the financial system allows us but without having to trust intermediaries , that is to say, that through contracts the task is facilitated because everything that is agreed upon will be executed automatically when appropriate.

Read our article on how to buy, sell or transfer Ethereum

Real-time quotation from Ethereum

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