What is Bitcoin? bitcoin is a technology that is based on blockchain same goes for Ethereum but why do we need Ethereum when you have Bitcoin? Think about this when you say blockchain, blockchain will make the internet decentralized. It was centralized because of all these big companies, whatever you do online goes through these big companies. We have Google, Amazon and Facebook they are managing the entire internet.
Now, so we want to make it decentralized because of that let’s use blockchain. The only thing which we know about the option was Bitcoin but if we talk about Bitcoin. Bitcoin is only a peer-to-peer electronic cash system, so that’s good! If you want to do transactions online we can use Bitcoin. When you say a Bitcoin blockchain every block will be having data.
- But think about the current internet world, what we do? we write apps!
- We create websites!
- We have enterprise applications so all these applications are running on the internet which is centralized.
If you want to make it decentralized, we need a network that can run applications that are decentralized and that’s where we got Ethereum. so thanks to Vitalik Buterin who is the inventor of Ethereum. It has this amazing concept known as EVM which is Ethereum virtual machine.
If you are coming from a Java world, you know to run software in Java you need JVM which is Java virtual machine. The same way in the Ethereum world if you want to write software and if you want to run them on the ETM network. That means we have two different concepts right! we have Bitcoin which is the mode for cryptocurrencies and then we have Ethereum which is more for decentralized applications in fact, in short, you can call them DAPPS.
Ethereum is not a cryptocurrency, it’s a platform. In this platform, if you want to use a cryptocurrency we have ‘Ether’. We also have a concept of ‘Gas’ which we’ll talk about later.
Ethereum platform basically it’s an open software platform so you can build your own application on Ethereum.
