It took Ethereum’s cryptocurrency just a few hours to lose about 20% of its value. If not so long ago, investors were in the euphoria of almost 400 dollars. The United States, and the miners bought up video cards in large quantities, but today the price has dropped to 190-200 dollars. USA. Bitcoin was a bit more fortunate, since the weekly flat field in the 2500-2600 range fell to the level of 2200-2300. On the one hand, Bitcoin turned out to be more stable, on the other hand, it is Ethereum that is called the cryptocurrency of the future, which, by capitalization, will overtake Bitcoin. What is this and what is special about this cryptocurrency, read on.
Ethereum cryptocurrency – a new generation automatic network
Ethereum and ether – these are radically opposite things. Terminology has merged due to a misunderstanding of the essence of the blockchain technology among miners who just want to make money on cryptocurrency. The Ethereum network is an application, just like the Bitcoin network. The Bitcoin network was created for anonymous transactions as a payment system. And there are many such highly specialized applications:
- Augur – an application that helps to create services according to forecasts, where you can get money for the correct forecast;
- Ardor is a blockchain application for implementing scalable solutions for business and institutions;
- GameCredits is an application for electronic cash transactions within the gaming system and stores for gamers.
All these applications have their own cryptocurrency of the same name for settlements within the system. There are about 880 in all. However, there are some frank HYIPs among them, for example, eDinar. An analogy can be made: blockchain applications are a company, and a cryptocurrency is its shares (without ownership). Belief in the application and its benefits will push the price of the application cryptocurrency up.
Blockchain is one big technology that allows you to create applications. The blockchain analogy is the Internet, the application analogy is email. But, if Bitcoin and other applications were created each time on a separate coded basis, then in 2015 a 20-year-old native of Russia, Canadian Vitalik Buterin proposed a fundamentally new system – the Ethereum network, within which you can create not one, as before, but thousands of applications .
Ethereum is unique in the following:
- The bitcoin blockchain is used for a narrow task – securing the ownership of a crypt and encrypting data transfer. Ethereum Blockchain provides the work of a decentralized application developed on the basis of the platform;
- At the heart of the network is an EVM virtual machine that works with an application made on any code (language). The capacity of the connected computers to the network is unlimited;
- based on the Ethereum network technologies, corporations began to create automated autonomous organizations (DAO) that eliminate the human factor and are responsible for internal administrative processes and transactions.
In fact, the Ethereum network can combine all existing applications into one network and the ether will serve as a cryptocurrency for internal exchange.
Conclusion. Ethereum is a new-generation cryptocurrency and network that is unparalleled and can supplant existing encryption and information exchange technologies. So far, only Bitcoin is similarly resistant. And if these two blockchain applications can indeed still be competitive in the long term, the benefits of other applications are not obvious, which means that the remaining cryptocurrencies can, if not disappear, then lose much in value. This situation is very reminiscent of the “dotcom crisis” in the 2000s. Stay with the FxCash blog and read the following article on how to invest in Ethereum cryptocurrency.