When it comes to cryptocurrencies, making it Ethereum is making it one of the most important projects in an ever-growing industry. based on technology block chain, Ethereum is a decentralized network created in 2015 about which we have a lot to tell you. if you want to find out what is ethereumits characteristics and how to invest, keep reading this beginner’s guide that we have written for you.
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What is Ethereum
Ethereum is an open source technology-based platform block chain which allows to build hundreds of cryptocurrencies and decentralized projects. Created in 2015, it does not depend on any government or regulatory body. Additionally, it has a native cryptocurrency called Ether (ETH)one of the most important today.
In addition to ether, the Etherum network has other cryptocurrencies and tokens that have attracted attention of cryptocurrency investors and enthusiasts. This technology involves a significant change in the status quo and, also, the development of new applications that offer alternative solutions.
While most companies are governed by a centralized governance system, proposals like Ethereum’s are self-sustaining because they are not controlled by anyone. This means that no central point of failure, running from the computers of thousands of people. They do not need to hand over their data or obey the rules of large companies.
Origin of Ethereum
After the launch of Bitcoin and its fascination with developers around the world, the Canadian Vitalik Buterin took the plunge, in 2013, to propose in a white paper a platform with which go further in online transactions via a decentralized application.
After announcing the project in January 2014 and presenting it at a Bitcoin conference in Miami, he launched Ethereum. I did it in 2015, with 72 million pieces distributed among those who financed the project.
Ethereum was born with the aim of developing a decentralized platform that would encourage the developer community to work with a recent technology called smart contracts or smart contractsa kind of instruction manual that is stored on the network block chain and that they have the ability to run according to programmed parameters in a secure, transparent, and immutable manner.
Features of Ethereum
Ethereum is one of the most ambitious projects in the world cryptowith a series of characteristics that we are going to list:
- Benefit from all the properties of the technology block chainamong which the immutabilitywhich implies that third parties cannot make changes.
- present applications protected against corruption and unauthorized access based on applications launched according to the principle of consensus. This means that everything knots They must agree to make changes.
- Cryptographically protected and decentralized, safety is guaranteed thanks to the absence of central points of failure.
- Applications built on Ethereum they are still working.
Gas in Ethereum: definition and functions
One of the key concepts of Ethereum is gas, unit of measurement used to measure work by any interaction. For you to understand: it’s as if every action you perform in Ethereum has a quantified cost in units of Gas. Its functions include:
1# Assign a cost to each task
Every action you perform in Ethereum has a cost in gas units, understanding this concept as the price to pay for all the actions performed.
2# Its influence on improving system security
By involving an expense, it takes care of preventing this technology from stopping working, protecting its security and avoiding attacks that affect millions of users.
3# It’s a way to reward miners
All actions that take place on Ethereum depend on the actions of users, called miners. By executing their actions in the material, they are rewarded.
Differences between Ethereum and Bitcoin
The sooner you understand the differences between Ethereum and Bitcoin, the better. And it is that, while Bitcoin was the first cryptocurrency and a money transfer system, Ethereum is a network that uses this technology to allow your users to create decentralized applications which has its own browser, its own language and its own payment system.
Launched in 2009, Bitcoin had the sole purpose of create a decentralized universal currency. Although Ethereum and Bitcoin are cryptocurrencies that can be traded between users, while Bitcoin uses the block chain To track digital currency ownership and ensure an efficient peer-to-peer e-money system, Ethereum focuses on running the programming code of an application. Thus, application developers often use it to pay for services and transaction fees on the Ethereum network.
If it is true that Bitcoin and Ethereum are decentralized technologies used by minors from each network to earn Bitcoin or EtherEthereum is the application of technology block chain while Bitcoin is primarily a currency. We make it even easier for you:
- Bitcoin is a digital currency with which to buy products and services, while Ethereum focuses on execution of smart contracts (or smart contracts) within the network block chain.
- While Bitcoin has a limited supply of cryptocurrency at 21 million, the Ethereum network is infinite.
- Although you have surely heard a lot about Bitcoin, Ethereum is used in more websites in which to transact.
- While Bitcoin is a digital currency with which you can make certain payments, Ether is used to make digital app transactions on the Ethereum network and in those who use their technology.
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What is Ethereum used for?
Be part of the platforms block chain the most used is the key you know the different uses you can give it to a technology in which the only limitation is placed by its creators. Keep reading!
1# Send payments quickly
One of Ethereum’s strengths is the ability to handle payments faster than bitcoin. This happens through the production of blocks block chain much faster and its scalability options.
2# Realization of smart contracts and decentralized applications
These are the main uses of Ethereum, thanks to its endless possibilities. Both the creation of smart contracts that allow us to launch the sale of products and services and the possibility of creating fully decentralized applications are the main reasons why thousands of users are opting to use Ethereum.
3# Creation of cryptocurrency ICOs
The creation of tokens and ICOs is possible by making a smart contractssomething that opened up a world of possibilities to democratize the creation of tokens. There are currently over 190,000, each with unique features that run on top of the block chain of Etherum.
Due to these usage options, large companies like Accenture, BBVA, Microsoft or Delloite have fallen into Ethereum networks, counting on the support of major business conglomerates. They’re all part of the call Ethereum Enterprise Alliance (EEA).
How to Invest in Ethereum
If you are thinking of investing in Ethereum, we recommend that you take a look at the complete guide that we launched a few days ago on how to invest in bitcoins or cryptocurrencies. you will discover the main reasons to do so, as well as the risks and the best cryptocurrencies to bet on.
Investing in Ethereum is simple and anyone can do it just by having an internet connection and a minimum budget. Yes, we recommend that you first fully understand what cryptocurrencies are and their risksfor which we leave you another link full of information.
Once you have decided to invest in Ethereum, the most common way is to do so through cryptocurrency houses or Exchanges such as Coinbase, Binance or Bit2me. Never invest hot and find out if it is beneficial for you to make an additional investment due to the historical development of cryptocurrency. As in any similar procedure, it is much better to have set objectives and to have chosen the stock to invest, as well as to have a handbag (or wallet) which allows you to store your cryptocurrencies on the platforms or in these wallets.
One last tip: remember take security measures how to enable two-factor authentication and use strong passwords that you only use in these apps
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