Ethereum: the main difference from bitcoin

Ethereum is the second most popular cryptocurrency.

Bitcoin is just a convenient way to store and transfer funds.

But the range of actions performed with money is much wider: money can be borrowed, deposited, invested, given for growth, and so on.

Smart contracts in Ethereum allow all this and provide the basis for a new economy free from states and banks.

Let's quickly understand what a smart contract is.

Smart contract is an alternative to legal contracts. In legal contracts, the third party is the judicial system of the country where the contract is concluded, it is she who is responsible for the execution of the contract.

Smart contracts are exactly the same contract, only digital. It exists inside the Ethereum system and its execution is guaranteed by a computer program, and in the foundation there is a strict mathematical system.

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 banks or the government.

This is where Ethereum enters the scene, providing a self-sufficient technical layer that clearly and impartially performs its functions, regardless of whether it is trusted or not. In Bitcoin, smart contracts are more difficult to make.