What is Ethereum?
Ethereum is a distributed computing platform. In addition to its open-source, public and blockchain-based structure, ethereum supports a computer protocol called smart contract. The founders, Russian computer programmer Vitalik Buterin and British programmer Gavin Wood, coded the platform and launched it in 2013.
Ethereum makes it possible to produce and run decentralized digital applications (dapp) using the technologies it has. Thanks to these applications, users can perform many operations that do not require an intermediary. These include transactions such as sending money and issuing secure contracts without the need for a notary, in which the trust environment is allocated to the maximum level despite the disappearance of intermediaries. Smart contracts allow users to perform one-to-one transactions transparently and securely while minimizing fraud risk.
How is Ethereum Produced?
Ethereum production is possible with mining, just like Bitcoin. ETH miners are able to produce ETH by utilizing the power of CPU (processor) and GPUs (graphics processor unit) equipped with cutting-edge technology through their computers or special hardware.
Parameters such as processing power, electricity consumption, yield and hash rate directly affect ETH mining success rate. While some equipment makes it possible to reach a sufficient hash rate with a high level of processing power, it can eliminate profitability due to excessive electricity consumption. Some equipment that provides advanced savings in electricity, on the other hand, may also eliminate profitability by causing the amount of ETH to be obtained through mining to be insufficient if they fail to provide the required hash power. For all these reasons, good hardware is the primary element of ethereum mining.
Considering the parameters in question, after purchasing a good equipment, the next steps are to install the software and install the node and connect to the network. You can then download the ETH Blockchain file and complete the remaining steps on the software and start mining.
What is the Difference Between Ethereum and Bitcoin?
Bitcoin basically consists of a networked money system based on blockchain technology and a cryptocurrency that accompanies it. Since BTC is the first cryptocurrency, it is considered the ancestor of all cryptocurrencies and the architect of its technological infrastructure. However, ETH operates as a computing platform and is seen as the most important cryptocurrency that contributes to the growth of the industry thanks to smart protocols in the ecosystem and superior protocols such as dapp (distributed application). While Bitcoin enables the creation of the cryptocurrency industry, ethereum has played an innovative role in shaping its future. Some of the industry’s leaders use the phrase “Crypto 2.0” for ethereum.
In summary, the only similarity between these two is that they have coins that are traded in the markets and they benefit from blockchain technology. Apart from that, BTC and ETH are two distinct players of the industry. Bitcoin has provided a type of currency that has never been seen before. Ethereum, with its role as a computing platform, has enabled everyone to benefit from superior technologies such as distributed ledgers, dapps and smart contracts.
How and Where to Buy Ethereum?
The way to buy ethereum with your fiat assets is crypto exchanges. Today, most exchanges comply with KYC (Know Your Costumer) and AML (Anti-Money Laundering) principles. Users must declare their credentials while registering on crypto exchanges. Some exchanges allow users to make ETH transactions without exceeding certain limits without declaring their identity information. It is extremely easy to buy ETH on crypto exchanges. Thanks to the agreements of exchanges with banks and payment companies, you can convert fiat coins to bitcoin in various ways and easily.
Can Ethereum be Earned Except Mining?
Like BTC, mining isn’t the only way to get ETH. You can quickly open an account on crypto exchanges, and have ETH for your fiat money or any other cryptocurrency. Afterwards, you can increase your ETH assets by trading or you can expect your asset to gain value by turning to the holding strategy known as “hodl” in the crypto industry.
It is also possible to earn ETH through everyday processes. You can increase your ETH assets by getting your salary over ETH, working in the cryptocurrency industry, benefiting from reward and interest programs.