Hello, in this lesson we are going to cover what a fearing is and how it differs and compares to Bitcoin because I'm sure you've all heard of Bitcoin especially if you've got this for in this course and pre posting probably heard me fear him as well I am practicing worthy a lot of people even advocates of fear him when asked what exactly it is and how it differs to Bitcoin and other cryptocurrencies in general but mainly Bitcoin in default very hard to tell you what is different about it, but they know what's the same about it. So in general, let's just cover what is essentially the same thing The one thing I want to cover is first is e fa. Is is the crip toe currency. So a lot of people when they refer to aetherium, the most likely referring to Eva. And if aetherium is actually and aetherium is the block chain implementation it is built on.

So, first of all that's the first thing I want to make clear. If people talk about aetherium in the form of currency, then they are talking about ether which is built on top of a theorem, which is a blockchain implementation. That's something worth noting. So as we mentioned, it's a crypto currency that has that's one of the essentially the similarities to Bitcoin and Nova similarity is it's based on blockchain based on a theorem which is a blockchain implementation and of all of 2017 it is the second largest crypto currency and as you can guess the largest is Bitcoin. So, that will give you a sense of scale and it is also the centralized and distributed system same lecture the way Bitcoin works in that manner. also uses and open ledger.

So there's a lot of similarities. And also another thing it uses mining as well you can mine for more coins, aka ether coins so you can go down that route as well. But one of the main things, one of the other things that make a theorem great is something called smart contracts which essentially Auto nated with no with me is decided by Ty we have no into mediary. You can think of it like a super vending machine. If you go into a conventional store, and maybe you want to buy some chocolate, you pick it up, you take to the counter and you pay for it. Whereas in a vending machine, we go to the vending machine, select which one you want using some sort of selection system, pay the money.

Once it's authorized payment, it gives you the item. It's as simple as that. It's all automated and smart contracts are essentially a souped up version of this. They allow the facilitation of various other forms. They, for example, imagine Airbnb without a central authority. So once you booked something, you just go to particular room.

You could use your phone, for example, to scan your phone using an NFC chip. And he just lets you in any sign doing and when you go Signs You Are all automated doesn't require some sort of Central Party to be tracking it. So that's one of the main differences where if you're in interval one his blocks of transactions can be created faster so it is faster to use as well compared to Bitcoin and no other difference is it allows allows for computer applications not just Not just currency to run on the network and this is probably in my eyes, the most fundamental difference is that Bitcoin is a cryptocurrency. aetherium because again, a theorem is a blockchain implementation it is closer to a blockchain is aka a decentralized distributed system. What you store and track on a system is unlimited currency. So a couple of examples could be cloud storage, like Dropbox.

But without a central authority, storing your files where they could potentially go down due to a hack or maybe financially they go down because they aren't operating very well. You could lose your files as a result. It's stored on Several different computers on a distributed decentralized network. So you could use a theory for cloud storage, you could use it for storing messages, email, for example, any sort of communication. Because there have been several cases, such as yak yak with social networks have gone down a lot of time, they haven't been able to sustain even grow for profitability. And as a result, a lot of time.

The actual messages the content gets deleted, they do sometimes allow users a little bit of grace period to send download their content, but imagine if it was stored on a decentralized system. So even if the creator was no longer around, whether it's an individual or a company, the content still could still be there could still be accessible by the public. And this also has immense implications on audit trails. Well, that's a few of the differences. So, how big is it? How big is it fear is almost specifically effect because they are the most successful implementation well over 5 million wallets capable of storing fear him and in terms of a market cap, the market cap is $30 billion as of October 2017.

And how does that compare to Bitcoin Bitcoin As a market cap of 100 I won't write out all the zeros $100 billion. So it is quite a bit smaller than Bitcoin, but it is still significantly larger than other alternatives. So this has just been a quick lesson on what the theorem is and how it differs and compares to Bitcoin. If you have any questions, feel free to reach out and the usual Thanks for watching, and I look forward to seeing you in my next lesson.