What is Ethereum?
05-11-2021Ethereum was first proposed in 2014 by developer Vitalik Buterin. It is a blockchain-based, decentralized software platform used for its cryptocurrency (ether) like Bitcoin. But while Bitcoin is used primarily as a store of value, the idea behind Ethereum is to decentralize other kinds of applications and services, from social media networks to more complex financial agreements. Its goal is to replace internet third parties – those that store data and keep track of complex financial instruments. It could be said that while Bitcoin is more like an email, Ethereum has more in common with the web browser.
It uses a “virtual machine” run on a platform-specific cryptographic token, Еther. Ether is used mainly for two purposes:
- it is traded as a digital currency exchange like other cryptocurrencies
- it is used inside Ethereum to run applications
How does Ethereum work?
Ethereum is a platform that makes it easier to create applications that aren’t managed or controlled by one entity. Instead, they are governed by code. Ethereum consists of several principles:
- Smart contracts (they make it possible to encode the conditions under which money can move within the money itself, negating the need to trust an intermediary)
- The Ethereum Virtual Machine (EVM) (each Ethereum node also has an Ethereum Virtual Machine that creates the smart contracts; all the nodes run in sync)
- The Ethereum blockchain (it is very similar to Bitcoin’s – it consists of all transaction history)
- Ether (Ether is needed for doing anything on Ethereum, and when it’s used to execute smart contracts on the network it’s often referred to as “gas.”)
- Proof-of-work (this algorithm, that was first put into action by Bitcoin, is what keeps these far-flung nodes in sync)
Benefits of Ethereum Blockchain?
- Irreversible transactions
- Decentralized
- Fast Transactions
- Secure (all transactions are cryptographically secured)
How to buy Ethereum?
- Create an account
- Verify your identity
- Fund your account and start trading Ethereum on X1
What to do after buying Ethereum?
- Store/Hold Ethereum
You can safely store your ETH in your account or in your crypto wallet.
- Trade Ethereum
You can trade ETH for other cryptocurrencies.
- Send Ethereum
You can send it to anyone and anywhere with their ETH address.
- Use Ethereum tokens as payment for transactions
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