Here’s everything you need to know about ethereum.
What is ethereum?
Ether is the second most valuable form of digital money after bitcoin. The technology it runs on is called ethereum, which was first described by 19-year-old bitcoin programmer Vitalik Buterin in 2013.
Buterin envisaged ethereum as an improvement on bitcoin. Like bitcoin, it is a decentralised payment network, with its own cryptograpic currency, that allows anonymous payments to be sent across the internet without the need for a bank or other third party.
Transactions are stored in a decentralised ledger, the blockchain, and are visible for everyone on the network to see.
How does it differ from bitcoin?
As the second-biggest cryptocurrency after bitcoin, ethereum has inevitably drawn comparisons to it. Its rapid rise has also led to claims of a bubble. But advocates say ethereum has several advantages over bitcoin that make it more useful.