By: Ximena Peinado
If whenever you hear about cryptocurrencies the first thing that comes to mind is Bitcoin, this article is for you. In fact, there are currently 762 cryptocurrencies on the network, and with them, other investment possibilities. Today, we will talk about Ether, the electronic currency created with the purpose of outperforming its competition, Bitcoin.
This exponential growth in its value has captured the interest of investors in cryptocurrencies since Bitcoin caused a stir in December 2017 when it reached its all time high of $ 19,783.06, from an original price of $ .003 in 2010.
Ether, or well known as ‘the utility cryptocurrency’ is the currency of a platform called Ethereum, which allows you to build decentralized applications (dapps). This means that the applications operate as they are programmed, without the possibility of interruptions, censorship, fraud or third party interference.
This cryptocurrency, which differs from the others by only being able to be used within the platform to which it belongs, is managed by a Swiss association called Ethereum Foundation.
This platform is also blockchain, with which any transaction can be accurately monitored, in addition to having high security. As the transaction is electronic, these encrypted currencies record their passage through different people and the transactions they may carry out over time.
With centralized applications and privacy technology, Ether forms the perfect terrain to develop any imaginable application or record debts or promises.
That is, one can leave instructions of how he wants a certain amount to move instantly. For example, when the dollar price drops or is exceeded by any other currency. No need for human intervention.
And when it comes to applications, before the launch of the Ethereum network in 2015, anyone who wanted to create a blockchain-based application had to create their own blockchain platform from scratch. Therefore, it turned out to be attractive.
For most of 2015, the price of Ether did not exceed one dollar, but today, August 17, 2020, it is worth $ 424.22.
The Ethereum platform was created by a 20-year-old Russian-Canadian programmer named Vitalik Buterin, who immersed himself in the world of cryptocurrencies in 2011, when only the Bitcoin space existed. Vitalik is also the co-founder of the Bitcoin magazine that talks about technical, economic and social issues related to the famous cryptocurrency that bears the name of the magazine.
As he became more informed, he realized that there were many other things that can be done with block chain platforms besides just doing transactions without an intermediary. At the same time, people began to realize that and the idea of Ethereum came to them, which has its own programming language and can be used for other types of applications.
“Unlike Bitcoin, it is like the difference between a calculator and a smartphone; where the calculator does its job well, but the smartphone has, in addition to the calculator, hundreds of other applications. ” explained the creator in an interview with Business Insider.
To operate within this platform you have to pay a certain amount in Ethers. Each action that the machine performs by the user has a cost, so that the cryptocurrencies are evaluated in the same way to confirm if they are of good quality.
Although other smart contract platforms have been launched after Ethereum, the original platform continues to maintain its dominant position as the most widely used platform.
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Sources: Investopedia, Money Man, Plus 500,
Investing, Blockchain.news, BBC, Business Insider