What is Ethereum?

by Moriah | 22 Oct, 23:00
What is Ethereum?

What is Ethereum?

Ethereum (ETH) - it is a platform for creating decentralized applications (smart contracts or smart contracts) on the blockchain. It has diverse applications in many areas, but among the main ones, it is used as a cryptocurrency, writing smart contracts and conducting ICOs.

The Ethereum (ETH or Ether) cryptocurrency has shown itself to be very proactive for use in purchases, investing, exchange trading and many other tasks. it is now the second most popular, giving way only to Bitcoin, from which it differs in more functionality, in particular, the ability to create smart contracts and develop new tokens.

Unlike Bitcoin, Ethereum has unlimited emission, although the annual number of new coins is 18 million. The number of coins already issued is more than 103 million ETH. Compared to Bitcoin, it has a faster transaction confirmation time on the network.

According to the coinmarketcup the ETH capitalization is $18.744.524.957 USD at the time of writing this article.

 

What is Ethereum?

Like other similar digital money, Ethereum coins exist in a decentralized payment system. But the platform supports not only this but also multiple online services created on the basis of “smart contracts” of the second important part of the platform. 

The contracts are created in order to provide clients with access to certain documents or functions, when they fulfill certain obligations, for example, making payments or downloading documents for verification, without the participation of a third party during the deal. And all this despite the fact that the platform is based on the usual blockchain, which serves as a reliable database for all these contracts. 

 

A bit of history

The name Ethereum appeared two years before the launch when the young Canadian Vitalik Buterii founded a startup for the new cryptocurrency, which soon attracted millions of dollars of investment. Later on, in 2015, the decentralized Ethereum network was launched and the Bitcoin users discovered in Ethereum there is a lot of what the main critical currency was lacking. Ethereum users were especially interested when its exchange rate exceeded $ 1.400 in 2018, but now after course correction, it reached its maximum, the cryptocurrency fell in price and sank significantly in terms of capitalization. But as some analysts predict, the phenomenon is temporary, and this currency has a very bright future. 

Optimists are sure, that Ethereum still has a chance to get ahead of Bitcoin on the market. It is not clear whether this will actually come true, but the current cooperation with the largest companies in the world (IBM, Microsoft) already says something. 

 

Ethereum cryptocurrency of the future?

The platform of this cryptocurrency is valuable mainly since it provides an environment for the development of decentralized applications ( DApps), which programmers have long paid attention to. Of great value are the aforementioned smart-contracts, which, in accordance with the programmed functions, can make transfers, provide access to data or contact each other when the prescribed conditions, events or time are reached. Open source code and opportunities for programming allow specialists to create new tokens, ICO projects, and business applications.

Because of all these features, Ethereum successfully holds onto the market and provides its users with a beneficial and comfortable way to use the currency. Decentralized applications have long been used in the banking sector, and a low commission provides significant benefits for automatic and manual financial transactions. Compared to Bitcoin, transactions on the Ethereum network take half a minute and mining has become even more productive. 

 

ETH Wallets 

Naturally, investing Ethereum still makes sense both for a short period and for the long term. But at the same time, the question arises: where do you store the ETH currency, which can jump in price at any time? You cannot immediately answer this question since the chosen solution depends on the availability of the appropriate computer, the frequency of use of the currency, the goals of working with it and other factors. Therefore, first of all, you should familiarize yourself with the types of these wallets and choose the appropriate one.

 

Online wallets

Online wallets are convenient services that allow you to securely store ETH cryptocurrency and quickly carry out financial transactions. Many online wallets support several cryptocurrencies at once, allow you to make an exchange between them, and even replenish fiat currency. You can access them even from a smartphone by setting the appropriate app. A good example of such wallets is the services: 

Blockchaln.com, Jaxx, Coinomi, etc.

 

Browser wallets 

Browser wallets for Ethereum cryptocurrency are distinguished by the fact that the access keys are stored on the user's computer, and not on the network servers. Of great popularity among these wallets were: MyEtherWallet and Ethereum Wallet.

 

Software wallets

Software wallets for computers are very reliable, they are full-fledged programs for working with currency and smart-contracts. The most famous programs are the official Mist and Geth (for Linux). Also, we would recommend multicurrency wallet Exodus.

 

Hardware wallets

Hardware wallet Ledger, Trezor and a number of others are also very reliable, and still do not need to be installed, like desktop ones, but you can only buy them, and at a price of 80 to 200 dollars. All of them have the same principle of operation and start after connecting to a computer via USB. When you connect for the first time, such a flash drive for cryptocurrencies will generate your passphrase and ask you to set a password. After that, the Ethereum application will be launched from it, and the ETH currency can be transferred and stored securely on the flash drive.

 

How and where to buy Ethereum 

For today, the most popular ways to buy Ethereum are cryptocurrency exchanges, electronic cryptocurrency exchangers. 

 

Buying on the exchange

Buying Ethereum on the exchange is considered one of the most profitable options, but you should also consider the choice of the exchange itself. So that the commission for the operation is minimal, and the exchange is verified and reliable. It is also worth paying attention to the Etn exchange rate in order to invest in it under more favorable conditions (for this it is worth waiting for a lower rate of critical currency).

We advise you to choose the most famous and reliable exchanges, such as Balance, Exmo, Kucoln and others. 

 

Buying through exchangers

If you want to buy Ethereum quickly and do not want to deal with exchanges, then you should use one of the exchangers. The course will not be as profitable as on the exchange, but you can buy coins in just a couple of minutes. To do it you can use 60sec, prostocash, baksman, etc.


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written by
Moriah

Blockchain specialist and crypto advisor


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