- Ethereum: The not-Bitcoin cryptocurrency that could help replace Uber
- By EMMA HINCHLIFFE
- Tunneling plan — Blockchain split rudder
- Permanent link to this article: github.com/xitu/blockc…
- Translator: Noah Gao
- Proofreader: Haiyang-Tju, 7Ethan
Ethereum: The non-Bitcoin cryptocurrency that will help us replace Uber
Bitcoin had a big year in 2017, with its price peaking and, disappointingly, the SEC cracking down on the number one bitcoin fan — the Winkelvoss twins — even so, it’s worth more than gold.
But while all eyes are on Bitcoin, another cryptocurrency is quietly growing. Ethereum, a crypto, more complex cryptocurrency that’s a bit like Bitcoin, but a bit mysterious. Its daily trading volume earlier this month was higher than bitcoin’s. To put it simply, bitcoin’s monetary value is great, but Ethereum is so widely used that it almost drives the business.
Even people who don’t care about digital currencies have heard of Bitcoin. But according to a brief and unscientific survey of Mashable’s office, almost no one outside the coin-world knows what Ethereum is.
So, what exactly is Ethereum?
Ethereum is a decentralized application that supports cryptocurrencies, or digital currencies, like Bitcoin. You can use it to make online payments, exchange money, or buy and sell things wherever it’s accepted.
But ethereum has an edge over Bitcoin. The cryptocurrency, known as Ether, runs on a type of “smart contract.” Smart contracts are a type of blockchain technology and “if:then” system that allows ethereum to be traded when certain conditions are met.
While Bitcoin also runs on a blockchain, a distributed, decentralized transaction ledger, it doesn’t involve these extra steps of a smart contract.
What is blockchain?
Blockchain is a big distributed ledger on which all bitcoin and Ethereum transactions are recorded. It’s completely decentralized, which means it won’t be run by any one person or company. In addition to Bitcoin, its decentralized nature can also be used for many other applications, such as distributing music rights or powering traditional financial institutions, and it is part of the digital currency.
What can Ethereum do that Bitcoin can’t?
Ethereum’s cryptocurrency is like Bitcoin, but with some extra features.
Smart contracts mean you can do more with Ethereum than just pay for things. For example, if you want to bet on the Super Bowl, you can use Ethereum to bet on the Patriots to win.
An if:then tool has many bigger applications, not just betting on football. You can use Ethereum to set up a crowdfunding campaign, as HuffPost points out, so that if you meet the project’s goals, you get your money — and there are no fees like Kickstarter or GoFundMe.
“Any other technology that can be implemented with Ethereum today is unimaginable.”
Smart contracts can even replace lawyers, ceos and companies.
“You don’t need Uber or anything like it,” says Benedikt Bunz, a Stanford PhD student studying cryptocurrencies. You can let the Uber contract handle the money to complete the payment.
Who is using Ethereum now?
Not surprisingly, Ethereum and Bitcoin have similar customers. But Ethereum is still in an early experimental stage. Investors and speculators are still focused on building new applications — not introducing Ethereum’s ATMs.
How do I buy Ethereum?
First, you’ll need an account, and Coinbase is recommended.
What’s the price of Ethereum?
One Bitcoin is really expensive: On Thursday morning, it was worth $1,050. Ethereum is not that expensive per unit. Its value hovered around $41 on Thursday. The numbers are different now. November 16, 2018 at 4:00 UTC, bitcoin around $5,572, Ethereum units around $178.)
What has Ethereum already done?
Developers can use Ethereum to build applications that take advantage of its smart contract technology. Some of these apps are cool, supporting microfinance, building virtual worlds, preventing identity theft, and more.
Is Ethereum the only alternative to Bitcoin?
No, but it’s the best one. Most other cryptocurrencies can serve as alternatives to Bitcoin without providing any real reason to switch to them. Ethereum is the only product that has a completely different advantage because of smart contracts.
Bunz says Zerocash is the most compelling alternative to Ethereum. Its innovation is that it improves transaction privacy, because bitcoin transactions are public on the blockchain ledger.
Beyond that, everything else is just like Bitcoin.
What are the risks of Ethereum?
If ethereum’s smart contracts go wrong, it could be very troubling. Bunz says the program would not only crash — it could eliminate money and not get it back, because the if:then command could be passed directly and irreversibly.
The chances of that happening are very low, but it’s still a big headache for the future.
Then there’s the volatility of Ethereum, Bitcoin and other cryptocurrencies. In The last three-day extension in March, ethereum doubled in price and has looked likely ever since.
Image credit: worldCoinindex.com
How important is Ethereum actually?
Ethereum’s main value right now is its potential. Cryptocurrency devotees say the technology could replace Uber and, in theory, a variety of other services.
“There are things that are absolutely possible with mainstream currencies that are not possible with bitcoin today.” Bunz said. “Any other technology that can be implemented with Ethereum is unimaginable today.”
If you find mistakes in your translation or other areas that need to be improved, welcome to the Gold Digging Translation Project – Blockchain sub-rudder to modify and PR your translation, and you can also get the corresponding reward points. The permanent link to this article at the beginning of this article is the MarkDown link to this article on GitHub.
The Nuggets Translation Project is a community that translates quality Internet technical articles from English sharing articles on nuggets. The content covers Android, iOS, front-end, back-end, blockchain, products, design, artificial intelligence and other fields. If you want to see more high-quality translation, please continue to pay attention to the Translation plan of Digging Gold, the official Weibo, Zhihu column. The Blockchain Branch is the blockchain branch of the Nuggets Translation Project, with the goal of better contributing better blockchain content to the community.