Ethereum is an open-source public service that makes use of blockchain technology to facilitate smart contracts and cryptocurrency trading securely without a third party. There seem to be 2 accounts available through Ethereum: externally owned accounts (controlled by private keys influenced by human users) and contract accounts.

Ethereum was created with the purpose to enable developers to build and publish smart contracts and distributed applications (dApps) that can be used without the risks of downtime, fraud, or interference from a third party.

Ethereum is also described as “the world’s programmable blockchain.” It distinguishes itself from Bitcoin as a programmable network that serves as a marketplace for financial services, games, and apps, all of which can be paid for in Ether cryptocurrency and are safe from fraud, theft, or censorship.

Ethereum is the second-largest cryptocurrency by volume, but its many uses can create a much larger learning curve for new investors than Bitcoin. 

Ethereum founders:

According to Buterin, bitcoin was very much limited in functionality. In an interview, he compared bitcoin to a pocket calculator that “does one thing well,” On the other hand, he said Ethereum is more like a smartphone with multiple applications you can use.

That’s the main premise of Ethereum. Same like bitcoin, it is also built on blockchain technology – essentially a distributed computer network that records all cryptocurrency transactions. But stands different from bitcoin, people can build apps on top of Ethereum.

In Buterin’s own words, Ethereum is “a blockchain with a built-in programming language” and the “most logical way to actually build a platform that can be used for many more kinds of applications.”

The Ether cryptocurrency was designed to be used within the Ethereum network. However, like Bitcoin, Ether is now an accepted form of payment by some merchants and service vendors.

Can Ethereum overtake Bitcoin:

Ether works in the same way as Bitcoin, but Ethereum is different. It is a worldwide software platform without any host, on which developers are building thousands of blockchain-based applications. Thus it means that these applications can run without being controlled by a company. Examples of this includes cryptocurrency exchanges, insurance systems, and new kinds of gaming.

In the centre of the platform is the idea of smart contracts which are automated agreements that ensure that money and assets change hands when certain conditions have been fulfilled. All transactions on the platform ultimately use ether, and the success of the platform is the reason for ether to be the second-largest cryptocurrency after bitcoin for the past few years.

Criticism on Ethereum

This has led to criticisms of both bitcoin and Ethereum from those who are worried about the massive amounts of energy consumed by their networks.

Another problem with Ethereum is the gas fees have become very expensive in the last couple of years because the network has become so popular and is therefore very congested.

Validators prioritise users who are willing to pay the highest fees for their transactions.

Still, some skeptics remain unconvinced by digital currencies like bitcoin and ether.

Conclusion:

In a nutshell Ethereum is an open-source public service that makes use of blockchain technology to facilitate smart contracts and cryptocurrency trading securely without a third party  which has several adavantages and is in the developing stage which is facing many criticism and to overcome that Ethereum is undergoing an ambitious upgrade called Ethereum 2.0.