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2020.01.21 Last update
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What is Ethereum? Attractive benefits as cryptocurrencies and future prospects

What is Ethereum?

What kind of currency is virtual currency Ethereum? Surprisingly few may understand the features in detail. Therefore, this time, I will explain what function Ethereum has as a virtual currency.

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Today is Yui ♪ alreadyVarious tokens are developed on the Ethereum blockchain using smart contracts

SuchEthereumAndWhat kind of virtual currency does it have?If you can't listen to it now, I recommend reading this article.

Ethereum is a platform that can implement programs on the blockchain

What is Ethereum?
Most cryptocurrencies are often developed with a clear currency function in mind from the development stage.

Among them, the most popular altcoinEthereumAndRather than virtual currency, "a platform for operating various applications and systems on the blockchain"It may be easier to understand.

Other currencies, such as Bitcoin and Ripple, are not the ones that offer a special "remote transfer" function, but other currencies can be fully realized by using the Ethereum blockchain.

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In that sense,Currency with functionality that is slightly different from other virtual currencies♪ (* ^ ▽ ^) /



Consider the difference between Ethereum and Bitcoin as virtual currency

What is Ethereum?

Now, the most famous cryptocurrencyWhat is the difference between Bitcoin and Ethereum?Let's take a concrete look at

Difference ① market capitalization

What is Ethereum?

The above figure shows the ranking of the top 10 cryptocurrencies by market capitalization.Overwhelming market capitalization compared to other altcoinsI am proud of.

Bitcoin has a market capitalization of about 17 trillion and Ethereum has a market capitalization of about 4000 trillion. You can see that among altcoins, Ripple is far behind Ripple.

Difference 機能 function as virtual currency

Next, as a comparison of the two as a virtual currency function,Ethereum is characterized by being able to add various automatic contracts to the system on the blockchain with the famous smart contract.

On the other hand, the currency function of Bitcoin mainly focuses on "bitcoin remittance and settlement", so there is a clear difference in the currency function.

Difference ③ Approval method at the time of transaction

Generally, cryptocurrencies are subject to approval by a third party when recording transactions on the blockchain,Various methods are introduced for each virtual currency in the approval method at that timeIt is done.

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The current state of EthereumApproval method called "PoW" is adoptedIt is a feature that prevents double payment using a hash function ♪



Bitcoin is also able to generate blocks without mining by the approval method using PoW like Ethereum.

However, Ethereum is PoW at the moment,At the completion of the fourth stage `` Serenity '' update, the approval method will be completely shifted to `` PoS ''Has become.

Difference④Currency limit

Each virtual currency hasThe maximum number of currency issuance is set to enhance the liquidity of the marketThings are mostly.

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But,Ethereum does not have such a maximum number of currencies(* (*) ♪



On the other hand, the maximum number of Bitcoins that can be issued is 2,100 million BTC.

Difference 新 た new block generation time on blockchain

In virtual currencies, transaction data is recorded on the blockchain.How new blocks are generated for each dataに な っ て い ま す.

Therefore, the faster the block generation time is, the better the trade will be.

Bitcoin is also the first cryptocurrency to be bornThe block generation time is about 10 minutes.

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HoweverFor Ethereum, this block generation time is about 15 secondsIt is a feature that it is possible to generate blocks in a much shorter time than Bitcoin ♪ (No ゜ ∇ ゜) ノ

Explains the attractive functions and features of the virtual currency Ethereum (ETH)

What is Ethereum?

Next, I will introduce some of the attractive functions and features of Ethereum as a virtual currency.

①Extensible smart contract function

Ethereum, as already introduced,`` Smart contract '' that automatically executes applications etc. by adding a contract on the blockchain is implementedIt is done.

By using this smart contract function on the Ethereum blockchain, other virtual currencies can automate contracts and fulfillment necessary for various transactions such as real estate and stocks.

As a result, many companies are actually utilizing this smart contract function effectively.

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as a result,Reduce costs and reduce transaction time♪ (* ╹ ▽ ╹ *)



(XNUMX) “Dapps” platform, which is expanding in recent years

Ethereum, a distributed platform with a smart contract function that automates contracts, is being widely used in Dapps (distributed applications), which is increasing in recent years.

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Generally, Dapps areApplications running on the Ethereum blockchainIt can be operated without auditing and fraud at the time of transaction, intervening by a third party ♪ o (* ^ ▽ ^ *) o



In the past, only the company that provided the application could maintain the service,Another feature of Dapps is that the service is automatically executed while the developer exists.Has become.

③I am aiming to improve the problems of Bitcoin

Speaking of virtual currency, the more people imagine bitcoin, the more they are known in recent years.

But,Bitcoin has various problems on the blockchain in terms of function as a virtual currency, Ethereum has taken a variety of approaches to address these bitcoin problems.

For example, maintaining a Bitcoin network requires a huge amount of electricity, but in response to these issues, we have approved a transaction to "PoS" that can create an environment that can reduce the cost of maintaining the system. Or migrating.

In addition, the scalability problem often heard on the InternetBitcoin takes 10 minutes, Ethereum can generate blocks in about 10 secondsTo increase mining efficiency.

* The scalability problem is a problem in which the approval speed of transactions is reduced due to the restriction on the block size on the bitcoin blockchain, and as a result, the transaction speed is delayed.

多 く Many currencies implementing ICOs use Ethereum

A new cryptocurrency issuing companyFamous as a means of implementing financing is "ICO (Initial Coin Offering)"However, many companies still use Ethereum in these ICOs.

It is said that the reason for this is that the development environment has been set up at both the exchange that lists the talks issued by the ICO and the companies that host the ICO.

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Also, considering the large demand at ICO,Ethereum side is standard such as "ECR-20"♪ ヽ ('-`) ノ



As a result, the ICO from 2017 to 2018 saw rising Ethereum prices and attracting investors from around the world.

親 Vitalic Buterin, the creator of the young genius Ethereum

Although cryptocurrency developers exist around the world,Vitalic Buterin, who invented and developed Ethereum, was already 19 years old and had the original Ethereum conceptThat's right.

For this reason, Mr. Buterin is said to be `` a young genius '' as an outstanding entity among cryptocurrency developers, and is also named in `` 50 people who have the most influence on the world '' announced by Bloomberg I am.

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From 2020 onwards,For Ethereum to grow further as a cryptocurrency, it is inconceivable without Mr. Buterin♪ (≧ ◡ ≦)



Virtual currency Ethereum considers price forecast and future prospects in 2020

What is Ethereum?

Next, let's look at the expectations and future prospects of Ethereum as a virtual currency after 2020, that is, how much it will be in the future.

Ethereum future potential as a virtual currency

In recent years, many people involved in cryptocurrency developmentEthereum is recognized as a platform for smart contracts to workIt seems.

The aforementioned Ethereum developer "Buterin" is said to have his own in that smart contracts are highly valued for their future potential as a global platform.

Buterin himself argues that the greatest strength of Ethereum is that it has more features than Bitcoin, and he seems to have stated that if Bitcoin is a calculator, Ethereum is a smartphone.

YuiYui

In other words,Ethereum can develop various applications utilizing smart contracts via networks around the worldIt is that ♪ \ (^ o ^) /



In addition, it seems that the open blockchain system that many users can participate or visualize, instead of the traditional centralized system, is also a factor for high future potential.

What is the price forecast for Ethereum 2020?

There are many sites that handle cryptocurrency information, and among them, cryptocurrency rating sites, etc., are forecasting the price of Ethereum in the future.

A world-famous U.S. research organizationWeiss RatingsAccording to ``Within the next five years, Ethereum share will be more than twice the size of bitcoin and become the king of cryptocurrencies"I have a bullish forecast.

In fact, in addition to these large research institutions, Ethereum always ranks high on various cryptocurrency rating sites, and it is highly likely that cryptocurrency experts will see a significant rise in Ethereum prices in the future. Seems to have many views.

What is Ethereum? Summary of attractive benefits as virtual currency and future possibilities

What is Ethereum?

This time, we are proud of the popularity of Altcoin No.1,What kind of function is Ethereum that keeps the position of the market capitalization second place?Has been mainly explained.

YuiYui

Buterin says"Only Ethereum can exceed Ethereum"From this, you can see the high potential of the future ♪ ((∀)



The world ’s largest"Microsoft" and "Intel" will be the backbone and have announced that they will actually introduce EthereumIs also very strong.

It is said that if Ethereum can be put to practical use before the Tokyo Olympics in 2020, the burden on athletes and supporting organizations will be reduced.

To that extent, Ethereum has the most promising features among cryptocurrencies, so keep an eye on future trends.

The following article also details the future prospects and future prospects of Ethereum, so please refer to them as well.

 

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Last Updated Date: 2020/01/21

[Women's association member who wrote this article]

Yui
Nice to meet you, Yui! At the time of the holidays, we always started with Saori (# ・ ● ・ v ・ person ・ v ・ ○) no virtual currency! I want to make a lot of money and travel with me together.
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