What Ethereum, and what is it for?

What is Ethereum

Ethereum is an open-source platform, which is used to run smart contracts. The platform has a high degree of decentralization, unlike other blockchains. It is programmable, which means that developers can use it in the creation of decentralized applications.

Ethereum Platform

Ethereum is a digital platform that embraces blockchain technology and extends its use to a wide variety of applications. It is common to confuse Ethereum and ETH. Ethereum is the blockchain and ETH (Ether) is the main asset of the Ethereum platform. Ethereum’s main innovation was the design of a platform that allowed the execution of smart contracts using the blockchain, which further reinforces the benefits of smart contract technology. The Ethereum blockchain, according to co-founder Gavin Wood, was designed as a kind of “computer for everyone”, which is theoretically capable of making any program more robust, resistant to censorship, and less prone to fraud. be run on a network that is globally distributed across public nodes. Apart from smart contracts, the Ethereum blockchain is also capable of hosting other cryptocurrencies, which are called “tokens”, through the use of its ERC-20 compatibility standard.

What is Ether Cryptocurrency

Ether Coin

Ether (ETH) is the cryptocurrency generated by the Ethereum protocol as a reward to miners in a proof-of-work system for adding blocks to the blockchain. It is the only currency accepted in the payment of transaction fees, which also go to miners. The block reward along with guaranteed transaction fees incentivizes miners to keep the blockchain growing (i.e. to keep processing new transactions). Therefore, ETH is critical to the functioning of the network. Every Ethereum account has an ETH balance and you can send ETH to any other account. The smallest subunit of ETH is known as Wei and is equal to 10-18 ETH. Ether is often mistakenly referred to as “Ethereum”.

Ether (ETH) – Economy

More than 1,700 companies around the world accept Ether as a payment method, according to the data that is provided by Cryptwerk. This includes supermarkets, tourism companies, video games, internet services, and obviously services related to cryptocurrencies, among others. When reviewing the information that is provided to us by the site, a slow but significant increase in the use of this cryptocurrency on the side of merchants can be observed from 2018 to 2020. It is practically impossible not to mention that the United States of America ranks first among the countries with the largest number of businesses that accept Ether as a payment method, followed by the United Kingdom and India, but in smaller proportions.

How Ether Works

Ethereum’s cryptocurrency, Ether, works as an open-source platform that is based on blockchain technology. This blockchain is found in multiple computers around the world, therefore, it is decentralized. Each of these computers is present with a copy of the said blockchain and there has to be a general agreement before any changes can be made within the network. It should be mentioned that like Bitcoin, it cannot be found physically nor is it printed like a banknote from a central bank, so this makes it a decentralized currency.

Wallet Ether

An Ether address is a form of unique identification for each user which is used to make transactions (both send and receive) cryptocurrencies quickly and easily. In the world of cryptocurrencies, the address works exactly the same way as in the traditional financial system, whether it is to receive or send money transfers. This means that it works as a kind of bank account.

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Ether – Transaction

The Ether cryptocurrency blockchain is similar to that of Bitcoin in that it is a record of the history of exchanges. However, developers are also allowed to build and deploy decentralized applications also known as “DApps” thanks to the Ethereum network. These are also stored in the blockchain along with the exchange history.

Ether – Mined

Although the Ether cryptocurrency can be relatively easily mined by mining, it requires special equipment to do so. However, compared to Bitcoin, the demands are lower since even a previous generation computer can manage to mine Ether, although, as expected, its performance will be very low compared to a more recent one.

Ether – Privacy

In a similar way to Bitcoin, each exchange is stored in the blockchain, only that in the case of Ether this also allows adding open instructions in the form of computational code, which are available to be executed when whoever has the authorization wants and pays the network for let it be done.