An introduction to Ethereum (ETH)

An introduction to Ethereum

There is a network called Ethereum network containing programs and providing services. This network requires a payment to execute a requested operation. This payment is called Ether, a digital token like Bitcoin.

Unlike Bitcoin, Ether is not counted as a cryptocurrency. It purchases you enough computing power so you’ll be able to use Ethereum network. It is more like a fuel than a cryptocurrency, so, it would be better to introduce it as the fuel of Ethereum network.

Ether tracks all the transactions and facilitates them in the network, something far vague for a cryptocurrency, yet some of its properties are in common with them.

One of the nearest properties it contains, is having a blockchain. A blockchain sets the Ethereum technology free from having a space-consuming storage. The data are chained in chronological order and it’s not controlled by third-party internet companies.

An introduction to Ethereum (ETH)

The Ethereum technology gathers information safe and sound. Like Bitcoin’s blockchain, the Ethereum tech is not under a specific authority. Everyone has access to it and no one can distort or corrupt it. In the blockchains the consumers data are less vulnerable to malicious threats and they can repel innumerable hackings. Although ether is exchangeable like all the cryptocurrencies, it won’t be allowed to be used like them. There’s only one purpose it preserves, and that is purchasing computing power to have allowance to use Ethereum network products and services.

The ETH founders

The ETH founders

On June 7, 2014, in Zug, Switzerland, 8 developers joined together to put their main focus on a similar goal they have, the Ethereum network.

Vitalik Buterin, a Russian-Canadian developer, is the author of the original 2013 Ethereum white paper. Vitalik is still an active contributer trying to improve Ethereum however he could.

Gavin Wood, a British developer, coded Ethereum first lines in the C++ programming language and conceptualizing Solidity programming language. Gavin operated the very first CTO of the Ethereum foundation.

The other six are:

Mihai Alisie who helped to establish the Ethereum Foundation.

Amir Chetrit helped co-found Ethereum but stepped away early on.

Anthony Di Iorio, project underwriter during the early stages of development.

Charles Hoskinson being essentially responsible for establishing the Ethereum Foundation and its legal framework.

Joseph Lubin helped fund the early development of Ethereum and founded the ETH incubator ConsenSys.

Jeffrey Wilcke: supported initial development using the Go programming language.

The Ethereum network

By having ether tokens, the Ethereum network can be activated. There you are allowed to build or run digital, decentralized application, known as dapps, for the desirable use. It can be either for business or personal.

Any action happens in the Ethereum network, requires ether to be spent, including hosting and executing or using and enjoying the applications inside the network.

To process transactions, it is required to fill the network with fuel. More efficient your data get and the less computation power is needed, fewer tokens should be paid. It’s like an engine. The efficient engine consumes less fuel.

Differences of ETH and BTC

Differences of ETH and BTC

The only reason Litecoin is called the silver to Bitcoin’s gold, despite its 3rd place, is because of ether standing on the 2nd. Unlike all other cryptocurrencies, ether doesn’t have an absolute coin limit. Meaning there’s no cap and it raises as demands go, however far. Ethereum’s blockchain got online in July 30, 2015. This blockchain is the longest blockchain in comparison to all virtual currencies. And this blockchain’s length deserves to be respected.

Not only are Ethereum’s blockchain long, they also contain more than just a record. There is more code in each block known as “smart contracts”. A smart contract is executable codes, contained in a transaction.

Ether, as a result of not being currency, wasn’t desperate for having the most unbreakable security. So, ether is free from all the sophisticated algorithms and that results in a new block, getting its confirmation, just in a few seconds.

As being different in purposes, it’s quite not worthy to compare ether with any cryptocurrencies. The reason of their existence was so different, so, they have different capabilities not necessary to be scaled.

Ethereum 2.0

In 2017 it was decided to create Ethereum 2.0 network. Ethereum 2.0 is going to be faster and more secure, with better efficiency and scalability, by altering the system. This upgrade alters the network from proof-of-work (PoW) to proof-of-stake (PoS). What this upgrade claims, is having a thousand more transactions per second, and that is an unbelievable achievement.

PoS system will get rid of all the “miners” and cast “stakers” to take their place. There won’t be a competition of a group of people trying to solve mathematical problems, it’ll be stakers using smart contracts to put ether in their cryptocurrency’s wallet. Stakers don’t mine the blocks, unlike miners, they create the blocks themselves, if not they validate proposed block. The validation process is called “attesting”. Doing so, both creating and validating, grant a reward for a staker.

The process is using cryptocurrency’s wallet, so, it may sound far to reach a complete success due to depending on cryptocurrency’s miners. On December 2020, the first phase, phase 0, the beacon chain, was deployed.

ETH usage

Nowadays, Ethereum has a broad range of use which varies noticeably.

Rapid transactions

Its rapid transactions are an ability proving ether worth. This is thanks to the scalability of the blockchain and the fast production of blocks being less than a minute.

Smart contracts and Dapps

Thanks to be programmed with Solidity programming, smart contracts and Dapps are two features giving Ethereum an unlimited power. When it comes to trade (buy, sell or even negotiate) products or services, smart contracts are the most enjoyable feature easing all the negotiation ways. Dapps are the best choices when it comes to have a decentralized application while being secure. These two features made ether to stand above all altcoins.

Companies using ETH

Due to its capabilities, an alliance of companies is made which has over 100 members. This alliance’s name is Ethereum Enterprise Alliance (EEA). The members of this alliance have a same interest, enjoy Ethereum capabilities, make them worldwide and support these kinds of technologies to make them develop.

Some of these companies are listed below:

  • Accenture, a company dedicated to technology services and consulting.
  • AMD, a leading company in the development of chipset, CPU and graphics cards.
  • BBVA, a Spanish bank with a worldwide presence.
  • Banco Santander, another Spanish bank with a worldwide presence.
  • BP Ventures, the investment arm of oil company BP.
  • Cisco, the world’s largest networking company.
  • Delloite, one of the largest audits, financial consulting and legal services companies in the world.
  • GoChain, one of the most important companies in the development of DApps.
  • Hyperledger, the world’s largest enterprise and open source blockchain development project.
  • JP Morgan, one of the largest financial firms in the world.
  • Microsoft, the world’s largest software development and technology company and responsible for Windows development.
  • VMWare, the most important company in the development of virtual machines and integration solutions for virtual environments.

How to buy ETH?

First you need to open a digital wallet so your ETH could be stored in.You can open an account in many exchanges like Binance and others and trade Ethereum.

You can read about best cryptocurrency exchanges in our blog.

 

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