All information about the Ethereum Network in one handy overview.
What is Ethereum?
General info Ethereum
Invest in Ethereum
Ethereum was founded by a Russian named Vitalin Buterik. His fascination led him to start developing his own project in 2014 what we know today as Ethereum. Buterin developed a decentralized platform that, like Bitcoin, uses blockchain technology. Despite this, Ethereum is vastly different from Bitcoin. Indeed, Bitcoin’s functionality is focused on transferring value, while Ethereum can serve as the basis for decentralized applications and smart contracts.
For a long time, Ethereum has been the second largest cryptocurrency in today’s crypto market after Bitcoin. The total value of Ethereum represents about 10% of the total market. Namely, their own digital currency called Ether (ETH). ETH, like BTC, is a digital currency that you can send to anyone in the world in no time.
How does Ethereum work?
Ethereum is an open source blockchain protocol. The code is visible to everyone and can therefore be verified. The Ethereum blockchain is a decentralized platform on which decentralized apps (dApps) and smart contracts can be developed.
Ethereum uses the ‘Proof of Work’ (PoW) consensus, however, they have been working on an “Ethereum 2.0” for quite some time. When people talk about this, they are referring to a new blockchain based on ‘Proof of Stake’ (PoS) rather than ‘Proof of Work’. The ‘Proof of stake’ consensus algorithm solves many of the problems of ‘Proof of Work’. For example, the ‘Proof of stake’ consensus algorithm consumes much less energy and is more secure against third-party attacks.
Building a dApp on the blockchain has many advantages over an app built on the current Internet. For example, dApps on Ethereum are a lot more secure, privacy friendly and cannot be censored.
To develop a dApp or smart contract, the necessary programming knowledge is required. Solidity is the programming language developed by Ethereum. Solidity should simplify the development of dApps and smart contracts.
What can you do with Ether (ETH)?
Ether is the digital currency of the Ethereum Blockchain. There are several ways to get Ether, the easiest of which is to buy Ether through a broker like Bitvavo or Coinbase. You can also get Ether by mining it or by accepting Ether as a form of payment when you offer goods or services.
Above are 3 ways to get hold of ETH. Once you have ETH you can do several things with it. Ether is mainly used for the following purposes:
- Ether is the utility token within the Ethereum Network, used to cover the fees for any transaction made on the network. For example, when sending ETH or ERC-20 tokens to someone else. Or, when interacting with a smart contract.
- ETH is held by holders for speculation: ETH, like any other cryptocurrencies, has a certain value. Many speculators buy ETH to either trade with it or hold it with the intention of selling it at a higher price.