Ethereum is not a cryptocurrency. It is a blockchain, but it has its cryptocurrency called Ether (ETH). It was created to change how the internet works. Because it lets individuals run their online computer systems without using a third party like Microsoft.
Every company online needs a server for storing information. And business owners are faced with two downsides: First, they have to pay high fees to use these servers. On the other hand, the personal information of the customers will always be vulnerable to hacking.
This blockchain has provided enormous opportunities for or cryptocurrency lovers. So if you want to invest in cryptocurrencies, but you don’t want to get yourself tangled in trading, there are other ways for you to participate in this market.
Stay tuned to learn more about the biggest competitor for Bitcoin in the cryptocurrency market.
What Is Ethereum?
Vitalik Buterin, the creator of this blockchain, tries to solve the mystery and introduce a better solution called Ethereum. In this blockchain, software applications run on a network made of many private computers. Computers together create a decentralized system. In this case, Google, Microsoft, and Company computers are easily omitted. And many computers from all around the world run the system. Buterin used a unique programming language called. Solidity. Ethereum is a decentralized public ledger that verifies and records transactions. This blockchain lets users create, monetize, and use applications. Users can buy Ether from crypto exchanges such as Bitunivex for payment. Later we’ll talk about it.
Why Was Ethereum Created?
The most excellent point about cryptocurrency is that it is a decentralized network of computers called a blockchain. Blockchain is a great solution to cut the hands of third parties and create a peer-to-peer network. It can be applied everywhere.
We have seen it has been working well for bitcoin and other cryptocurrencies, challenging the banking system in the whole world. By launching Ethereum, another Revolution began.
To understand it better, let me ask you something, where do you find the application you need? Do you not find yourself in front of many applications relying on big companies such as Google, Microsoft, or Apple? That’s because applications’ developers need a place to store information.
No matter what application you are looking for, your choice is always controlled and limited by third parties such as Apple and Google. Every application requires Google or Apple approval to be listed in any app Store. But Ethereum made it possible for everyone to access and use applications. In fact, in this blockchain, the community is in charge.
What Happens in Ethereum?
By using this blockchain, everyone can create and use new applications. No one needs any permission because third parties no longer exist in this blockchain.
The application created in this blockchain doesn’t use a central server; they are called decentralized applications or dApps. Information in this blockchain is sent from person to person instead of sending from person to company to person.
Benefits of Using Ethereum’s Blockchain
The most important thing is anonymity. No one needs to know the other one for this blockchain to work correctly. You will experience a level of privacy you have never experienced before.
All of your personal information is stored on a computer network run by the community of Ethereum users. So you don’t have to be worried about blockchain being hacked, sold, or disrupted like central services of big companies.
On the other hand, the exclusion doesn’t exist in this blockchain because everyone can use it Freeway. No matter where you live and your background, you can use the decentralized application without commission. And the same rule applies to the applications too.
What Is Ether?
Ether is the native token of the Ethereum blockchain. By using this transactional token, the operations on the blockchain are facilitating. It’s not a surprise to know you have to pay to use decentralized applications on this blockchain. As you all know, Ethereum needs computing power to run its programs and services, and the computing power is not free.
Some people take Ether as the fuel of the network, but some people invest in it as a cryptocurrency. ETH is the second-largest virtual currency by market capitalization globally; the first is and has always been Bitcoin.
The user might exchange other cryptocurrencies for Ether. However, ETH can’t be substituted with another cryptocurrency to provide computing power for Ethereum transactions.
What Do You Need Ether For?
As we have said earlier, ETH has only one purpose: to facilitate decentralized computational applications on the blockchain. Since developers should pay charges to host and run the applications on the Ethereum network, you need to pay for using decentralized applications.