Crypto News Like Desk : Launched in 2015, Ethereum is the second largest cryptocurrency after Bitcoin in terms of market share. But unlike Bitcoin, it was not created as a digital currency.
Ethereum was intended to create a new type of Global and Decentralized Computing Platform that rode on the security and openness of Blockchain. Everything from financial tools and games to complex databases are already running on the Ethereum blockchain. And its future possibilities are limited only by the imagination of the computer scientist or engineer.
Ethereum has become a popular investment in the world of cryptocurrency (and like Bitcoin, it can be used to send or receive value without an intermediary). Ethereum-based applications are built using “smart contracts”. It can be transacted by two parties like a paper contract! But unlike old-fashioned contracts, smart contracts are executed automatically and do not require any kind of intermediary, transactions are completed without any identification documents of who is lending to whom.
Ethereum, like Bitcoin, is an open source project that is not owned or operated by a single person. Anyone with an internet connection can run an Ethereum node or interact with the network.
How does Ethereum work?
Ethereum works using a technology called Blockchain. You may have heard that the Bitcoin blockchain is a lot like a bank ledger, or checkbook. The Bitcoin blockchain is a decentralized technology in which many computers manage transactions collectively and all computers in the network use their computing power to ensure that the tally is accurate and secure.
On the other hand, the Ethereum blockchain is like a computer: it also documents and protects transactions, making it much more flexible than the Bitcoin blockchain. Developers can use the Ethereum blockchain to build a variety of applications. Applications ranging from logistics management software to games can be developed using the Ethereum blockchain (to lend, borrow, trade, and more).
Ethereum uses a 'virtual machine' to do all of this, a huge, global computer made up of different personal computers running Ethereum software. Both hardware and electricity are spent by participants running all these computers. To offset these costs, the network “Ether” Ether (or, more commonly, ETH). Namely uses its own Bitcoin-like cryptocurrency.
“Ether” ETH keeps the whole thing running. You can interact with the Ethereum network with some fees (Fees) or ETH stored in smart contracts, these fees are usually called “gas”!
A Brief History of Ethereum:
2013: Vitalik Buterin, a 19-year-old computer programmer (and cofounder of Bitcoin Magazine), publishes a whitepaper proposing a highly flexible blockchain that can support virtually any type of transaction.
2014: Together with cofounder Gavin Wood, the teenager develops the Ethereum protocol and sells $18 million worth of Ethereum in pre-launch tokens.
2015: The first public version of the Ethereum blockchain is launched in July. Smart contract functionality begins to roll out on the Ethereum blockchain.
February 2021: Ethereum price is now 1700 USD which is second only to Bitcoin!
Is Ethereum secure?
Ethereum ETH is currently secured by the Ethereum blockchain just like Bitcoin is secured by the blockchain. The enormous amount of computing power provided by all the computers in the network – verifies and secures every transaction, making it virtually impossible for any third party to intervene. Cryptocurrencies generally work using a technology called Blockchain. Blockchain is a decentralized technology in which many computers collectively manage and record transactions. The success of this technology is due to its security and privacy.
