Although Ethereum is just another popular application of Blockchain, it's mainly misunderstood as being a cryptocurrency like bitcoin. In this mini-guide, I'll explain about Ethereum in the simplest way possible.
Blockchain can be used in so many ways & scale, that it has become a popular topic since the last few years. This is mainly because of it's decentralised & secure structure.
If you wanna know more about Blockchains, I have explained it in a very simple language in my last blog. You can check it here :
When it comes to Ethereum, Dr Gavin Wood has explained it very clearly:
Bitcoin is first and foremost a currency; this is one particular application of a blockchain. However, it is far from the only application. To take a past example of a similar situation, e-mail is one particular use of the internet, and for sure helped popularise it, but there are many others.
In simple terms, Ethereum is nothing but software based on Blockchain technology which can be used to create more Blockchain applied applications.
Well yes, but no!
Both Bitcoin & Ethereum are based on Blockchain but they differ from each other in terms of purpose.
Bitcoin can be said as a cash system which mainly used to carry out transactions through the Blockchain network. While on the other hand, Ethereum is used to create & run Programming codes of distributed applications.
One of the popular examples of Ethereum application is Smart Contracts.
Smart Contracts, as the name suggest, are generally contracts which are used to facilitate the transaction of money or anything else of value. They have an advantage over traditional contracts in terms of their mechanism. A smart contract is generally a computer program which executes only when certain condition as per contract terms met. This makes it more secure. It helps to prevent incidents like frauds & third party involvement.
Well, that's it for now!
Additional sources for more info:
Well, hey everyone I hope you found this article useful & as usual I'll keep it updated as I discover more amazing stuff about it. I also wanna thanks to all of you for such a great response on my previous post. Thank you so much :D