Ethereum is a public blockchain platform that allows developers to build and deploy decentralized applications. Ethereum runs smart contracts, which allow a higher level of protection from downtime, censorship, fraud or third party interference.
Ether is a tradeable cryptocurrency, used by application developers to fuel the Ethereum network.
The bitcoin blockchain is used to track ownership of digital currency, while the Ethereum blockchain focuses on running the programming code of any decentralized application. As opposed to mining for bitcoin, in the Ethereum blockchain, miners work to earn Ether.
Ethereum enables developers to build and deploy decentralized applications. A decentralized application serves some particular purpose to its users.
Decentralized applications benefit from immutability, ensuring that no third party will interfere with data. They are also corruption and tamper proof, making censorship impossible, and are secure against hacking attacks and fraudulent activities. Decentralized applications will never go down and can never be switched off.
The term ‘altcoins’ is short for alternative coins. Given that Bitcoin was the first cryptocurrency to surface in the market, the other digital currencies that emerged are referred to as altcoins.
A blockchain is a digital ledger recording cryptocurrency transactions, maintaining records referred to as ‘blocks’ in a linear, chronological order.
Using a blockchain ensures security and manages digital relationships as part of a system of record.
A distributed ledger is a database, digitally recording transaction information using cryptography, making it secure and unforgeable.
There are several differences between a blockchain and a database, including the level of control. Blockchains are under a decentralized control, whereas a centralized database creates a dependent relationship between users and administrators. Users tend to prefer confidentiality, which is better achieved through a centralized database. Performance also differs, as a centralized database is able to compute information faster than blockchains.
