Ethereum is a blockchain platform that enables developers to build decentralized applications on the blockchain. The platform was invented by Vitalik Buterin and has been growing exponentially in popularity since its introduction in 2013.
Ethereum is a blockchain network like Bitcoin. The primary objective of Ethereum is to allow people to create decentralized applications that run on the blockchain, without any chance of fraud, censorship or third-party interference.
This article will explain the 7 Basics of Ethereum in a simple term.
What is Ethereum?
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.
This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.
In the Ethereum blockchain, instead of mining for bitcoin, miners work to earn ether, a type of crypto token that fuels the network. Beyond a tradeable cryptocurrency, ether is also used by application developers to pay for transaction fees and services on the Ethereum network.
The overwhelming majority of bitcoin transactions take place on a cryptocurrency exchange, rather than being used in transactions with merchants.
Below are some notable explanation about the Ethereum network:
1. Ether is the Cryptocurrency of Ethereum
Ether is the cryptocurrency that fuels the Ethereum blockchain. It is used to pay for computation time and transaction fees.
2. Ethereum is a Decentralized Platform for Applications (DApps)
Ethereum is a decentralized platform for applications (DApps). It allows developers to build DApps on top of it.
3. Ethereum is a platform that enables developers to build and deploy decentralized applications.
The blockchain is an undeniably ingenious invention – the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. But since then, it has evolved into something greater, and the main question every single person is asking is: What is Ethereum???
As time goes on and more businesses see the power behind this revolutionary technology, more people want in. This leads to more competition for mining ether. And this leads to higher prices of Ethereum which results in even better business adoption rates.
4. The Ethereum blockchain network consists of thousands of computers around the world running the Ethereum software. These computers are called nodes.
5. Nodes on the Ethereum blockchain network are incentivized to follow the rules of the network by earning Ether as a reward for their work.
6. Ether is used to pay for computation time and for transaction fees.
7. Ethereum is the 2nd Largest Cryptocurrency by Market Cap.
As of September 2021, Ethereum is the 2nd largest cryptocurrency by market cap. In September 2021, there were around 117.5 million ETH coins in circulation, 72 million of which were issued in the genesis block — the first ever block on the Ethereum blockchain.
We have covered the basics of Ethereum, but there’s still a lot more to learn. If you feel like you want to go deeper into this technology and get involved in cryptocurrency trading, make sure to check out our blog for regular updates on the topic.
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