Ether is the second most popular cryptocurrencyю It all started in 2011 when young Canadian programming student Vitalik Buterin became interested in blockchain technology and Bitcoin cryptocurrency. After a couple of years, fully convinced of the practical benefits of the blockchain, Vitalik creates technical documentation for the product, which is now known all over the world as Ethereum. In 2014 it was launched.
The main thing that distinguishes Ethereum from Bitcoin is its wider use, thanks to the ability to quickly create smart contracts. If Bitcoin is just a convenient way to store and send funds, then Ethereum offers a wider range of activities that can be done with the money. Money can be borrowed, deposited, invested, lent, and so on.
Smart contracts in Ethereum allow all this and provide the basis for a new economy free from states and banks. To build a full-fledged economy, you need a contracting tool and a third party that both parties to the transaction trust. But the idea behind cryptocurrency is that people don’t want to trust the banks or the government.
This is where Ethereum starts to show up, providing a self-sufficient technical layer that clearly and impartially performs its functions, regardless of whether it is trusted or not. In the Bitcoin network, smart contracts are much more difficult to make.
Ethereum expands the concept of cryptocurrency to the crypto-economy through smart contracts. If the main idea of Bitcoin is money independent of the governments, then Ethereum offers an economic system independent of them.