With over 1600 cryptocurrencies out there, Ethereum has reached to the top of the list, its name often mentions as often as Bitcoin. Nevertheless, its value does not even come close to Bitcoin price. It is great for trading, and some of its more advanced functions give it some exciting potential for the future.
While Bitcon thrived in the cryptocurrency industry, Ethereum developer Vitalik Buterin invented and evolved the concept in 2013. Since it’s foundation, the currency has seen a sharp surge in the market for understandeble reasons.
Ethereum is a platform for developing decentralized applications, of which Ether is a cryptocurrency. This digital currency creates decentralized applications and distribute it. It has a very broad scope for application development and everything that is built on the platform is distributed so as to power the purpose of the application. Ethereum blockchain is an open source network for creating a decentralized application.
Ethereum is technically a computer that is connected to hundreds and thousands of other computers making a dense network of the platform. Developers do not need to learn new skills to contribute to the platform, existing languages such as HTML and JS can be used to create an interface. A lot of start-ups, Fortune 500 companies and technology suppliers have teamed up with Ethereum SMEs to create, grow and serve consumers in different ways.
What is ETH?
The cryptocurrency that Ethereum blockchain has is ‘Ether’ and the code is ETH in cryptocurrency exchanges. Just as Bitcoin has Satoshi and Millibits, and US dollars and US dollars, Ethereum has its own names and terminology naming. The ether is also used to pay for different transactions and computing tasks performed on the Ethereum network, and this is confusingly called GAS.
Most of the business models in any industry today have one thing in common, they’re centralized. While ethereum is a platform where applications work in a P2P form without intermediaries to charge for their services. For instance, banks promise to keep your money safe and they charge you for the same. Technically speaking, when you make a transaction, the real transfer of the amount does not happen. It happens virtually, just within the system. Your real money is elsewhere, and you are paid for using their system.
Everything that centralized offers one point of attack. The ethereum platform being decentralized this possibility is excluded. On the platform, you do not need to trust the developers of your personal data, tools or content. Regardless of the application created, this function remains intact.
How it works?
With this system, like Bitcoin, you do not need to trust any intermediaries for your money transfers, information and data. You control them all the time.
The decentralized character of the Ethereum network, which is connected by thousands of computers, makes it almost impossible to hack. Even if someone tries to hack, the network will protect it.
The developers of Ethereum write business logic called “contracts“. A contract is a program that starts a series of steps after getting a “transaction” message. Business logic or contracts can send and receive transactions, store data and interact with other contracts.