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How Ethereum works?

In one of his speeches, Steve Wozniak compared the Ethereum blockchain with Apple in terms of importance. It sounds impressive, of course. Still, while everyone knows about the “bitten apple”, the general public is barely familiar with the Ethereum cryptocurrency and its network.

How Ethereum works

Let’s take a look at this platform and find out why it is so important. Also, we will try to explain how can its token displace Bitcoin? Well, first things first.

What is Ethereum?

Ethereum is an open-source software platform based on blockchain technology. It allows developers to create decentralized applications, called dApps. However, the word Ethereum is also used to refer to the Ether coin (ETH), a cryptocurrency based on Ethereum technology. When people talk about buying, trading, or paying with Ethereum, they mean the Ethereum cryptocurrency.

Ethereum history

Ethereum’s story begins with Vitalik Buterin. In 2011, one talented 17-year-old programmer – Vitalik Buterin – was interested in Bitcoin. He realized the shortcomings of Bitcoin and created Ethereum as a technology, superior to the blockchain.

The early history of Ethereum:

2013: Buterin released a white paper describing the basics of Ethereum.

2014: Buterin and co-founders raised more than $18 million for the project through ICO crowdfunding.

2015: Frontier, the first public release of Ethereum, was launched.

What is the Ethereum blockchain able for?

Nothing supernatural. But anyone can use it as a giant decentralized virtual machine. In other words, it is not necessary to create your own network to get all the advantages of the blockchain for solutions to your issues. Use the Ethereum system instead.

Smart contracts allow managing its resources. This is code written in the original programming language Solidity. The developer sets up a script based on the “if-then” principle. Nodes perform this program automatically, recording the results of each operation in the network.

What is the value of Ethereum cryptocurrency?

On February 28, 2017, the creation of a non-profit organization Enterprise Ethereum Alliance was announced. Now it is studying the possibilities of using the Ethereum blockchain for corporate needs. Pay attention to the members of this alliance. It includes Intel, Microsoft, J.P. Morgan, and several other large technology companies and financial institutions.

Why is this important in terms of Ethereum? The answer is that the crypto community is not the only institution interested in Ethereum. A huge army of network users is also interested in the existence, practical application, and success of the Ethereum platform. This includes giant companies with enormous capital.

Ethereum blockchain

The technology the Ethereum programmers are working on already allows the creation of decentralized applications. Products built on the Ethereum blockchain are not subject to censorship, software glitches, and all other vulnerabilities inherent in centralized applications. For example, neither one nor even several nodes can affect the network performance. All data is stored on tens of thousands of computers around the world. Thus, to disable the Ethereum blockchain, you need to turn off the Internet almost all over the world.

The exchange of ethereum to bitcoin is fairly fast. It is possible in almost any country in the world. This means that the coin has very high liquidity.

What is the ETH token meant for?

To use the services of Vitalik Buterin’s brainchild, you should pay a commission. It is counted in units called “gas”. Payment within the system is carried out only with the internal ETH coin.

Given that Ethereum’s user base is growing every year, and the number of coins is limited, this leads the rate upward moving.

Conclusion

So, every user of the Ethereum blockchain should have the required amount of Ethereum cryptocurrency. As the number and complexity of applications running on the network grow, so does the demand. The high interest in the project from large corporations and the expansion of the practical application of Ethereum makes it more and more popular and valuable.

vlalithaa
I am Lalitha Part time blogger from India . I Love to write on latest Tech Gadgets , Tech Tips , Business Ideas , Financial Advice , Insurance and Make Money Online

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