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The basics of Ethereum.July 14, 2021 by admin
Ethereum 101:
So you have heard of Ethereum ? continue reading if you’d like an understanding of the second largest cryptocurrency in the world.
The market cap on Ethereum is an astonishing $226,935,610,477.00 as of 14/07/21.
The idea of ethereum was created in 2013 by Vitalik Buterin when he noticed that bitcoin was closed to outside developers. He thought that it would work well to allow the platform to give the ability to develepers to create their own applications based on the bitcoin network within the blockchain.
He’s propersition was turned down so he decided to go at it himself, so he began work on a cryptocurrency we now know as ethereum. He’s idea was to create a olatform of which anyone could tap into and create based off of the crypto. the currency within Ethereum is known as Ether.
The following year vitalik raised $18 milion by selling a large sum of the currency Ether to fund his project.
Following on in july of 2015 Ethereum was launched and had created its first block of data on the blockchain, so it was off to a great start. Before long software develepers noticed the opertunity availible there and that birthed many cryptocurrency’s known today as Tether, USDT, Chainlink and many many more.
HOW DOES ETHEREUM WORK:
Ethereum works not to differently to the leaning crypto bitcoin with the big difference being, anyone can create using Ethereum.
Bitcoin uses blockchain just like any other crypto, however bitcoin only allows its own data to enter its blocks on blockchain.
(Imaine you have two boxe, you have a packet of M&M’s. one box will only alow to to store greems M&M’s whereas the other you can pour the entire pack into) Ethereum is the box that aloows the whole pack in.
smart contracts is how Ethereum works. A smart contract is a code that establishes a set of rules, guidelines and then makes sure that those guidelines are met. Its impossible to amend or change a smart contract.
Smart contracts are not typically what you have heard of before, although judicial contracts are also used, smart contacts are just lines of code that makes sure a function or action is completed. So when you stake your crypto on binance for example, Ethereum creates the contract stating what your rate of profit return would be.
(Short side note, staking is very similar to that of an ETF only with much better rates. you put in a set amount with a promise of a percentage on top. find out more at binance for bonus 10%)
With Ethereum blocks in the chain they can hold any number of different project, crypto’s and contracts and from anyone.
USES FOR ETHEREUM
- Crowdfunding
- Entertainment
- Lending systems
- Insurance
Ethereum is different to other crypto’s due to the fact it invites external developers to create their own applications on the Ethereum platform. A lot of the time people confuse “Ethereum” as the currency, however the currency behind Ethereum is actually ether.
So when people mansion “the price of Ethereum” they are actually referring to ether, the native currency to Ethereum.
I truly hope this short article was able to give you a basic understanding of just how revolutionary Ethereum is becoming.
Sidenote: If you do decide to invest in Ethereum please consider investing a small amount into a cold storage wallet, it keeps your crypto as safe as possible and offline away from cyber attacks you can get one on a budget at Amazon.com.
Thank you for taking the time to read this article, please keep the maximum amount of tip for yourself.
Here are just a few links i am affilated with, if you'd like to check them out great, if not thats fine too:
- https://shop.ledger.com?r=7e8c498b7a36 LEDGER cold storage.
- https://www.binance.com/en/register?ref=B8WVQ98X BINANCE with 10% back.
- https://www.coinbase.com/join/mcgove_lm COINBASE gives you $10 btc.
- https://crypto-lounge.siterubix.com/ my website.
- https://amazon.com / my favourite crypto book
- Amazon audible.com/FREE30DAYTRIAL
