Jun 03 2021 (Thu)
I could try and spend time breaking it down and explain Ethereum to you but it’s better to just go to the source. The excerpt from the Ethereum website.
Ethereum is open access to digital money and data-friendly services for everyone – no matter your background or location. It's a community-built technology behind the cryptocurrency ether (ETH) and thousands of applications you can use today.
Ethereum is a technology that lets you send cryptocurrency to anyone for a small fee. It also powers applications that everyone can use and no one can take down.
It's the world's programmable blockchain. Ethereum builds on Bitcoin's innovation, with some big differences. Both let you use digital money without payment providers or banks. But Ethereum is programmable, so you can also use it for lots of different digital assets – even Bitcoin! This also means Ethereum is for more than payments. It's a marketplace of financial services, games and apps that can't steal your data or censor you.
So now that we’re had a quick overview of what Ethereum is, let’s take a quick look at how it works.
This is an excerpt from a great write up on how Ethereum works. The source of the write up can be found here
The term “Ethereum” refers to the blockchain at the heart of the ecosystem. The Ethereum blockchain does two things:
The Bitcoin blockchain was designed to support a singular application: a peer-to-peer virtual currency. To function, Bitcoin only needed a single source of truth. The Ethereum blockchain is different. The Ethereum blockchain still maintains a single source of truth, but it also functions as a general-purpose platform for a variety of applications.
Whitepapers are a great way to dive into the visons and technology behind cryptocurrencies. The Ethereum white paper can be found here. It was originally published in 2013 and has evolved since inception. I suggest reading it if you have time – it provides a great starting pint of the vision for Ethereum.
There are several things to consider before investing in cryptocurrency. You should have a basic understanding of the volatility and risk associated with cryptocurrency, bit also realize the significant potential of certain cryptocurrencies. With this in mind, let’s look at the main advantage of Ethereum.
The world continues to become decentralized and secured on the blockchain while Ethereum is the protocol that powers it. It involves the creation of a parallel, decentralized financial system and specific business solutions such as supply chain management tracking and gaming. If Bitcoin is viewed as the dominant monetary network, Ethereum can be viewed as the dominant application network.
Ethereum is the second biggest crypto in market cap. It is relatively mature when compared to other cryptocurrencies and has a strong case for application.
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