Crypto

What is Ethereum? and How Does It Work?

Introduction

You may have heard before that Ethereum is a digital currency like bitcoin, but it exists more than just another digital currency, it ranks third in the list of the largest market share of digital coins, blockchain, and the money used for transactions on that platform exists called Ether, and it is commonly called Ethereum as well.

What’s Ethereum?

Ethereum is an open-source platform using blockchain technology to create and manage decentralized digital applications, which enable users to make agreements and make transactions directly between them, to sell, purchase and exchange goods and services without an intermediary. For example, users can dispense with banks in the money transfer process and lawyers to write contracts and set up their sites to finance crowdfunding projects rather than create a financing campaign on a non-specialized website.

Ethereum operates on a global network of computers, which together form a supercomputer, and combines innovative contract applications that are theoretically independent of any external mediation or intervention and are resistant to manipulations and operation. Smart contracts work just as programmed. Reducing the likelihood of fraud. They are also self-executing, such as an ATM that executes instructions digitally when conditions exist met and confirmed, such as transferring funds and making goods available to the buyer.

The difference between Ethereum and the regular internet is that all agreements and data are stored in individual blockchain accounts rather than stored on google and Facebook cloud servers, reducing the likelihood of leaking them and enabling the user to control their data.

what is Ethereum, and how does it works. A digital currency like bitcoin – ranked third in the list of the largest market share of digital money. Non-centralized digital applications

What Is Ether?

Running computers that implement decentralized application codes requires a lot of energy and cost, so Ethereum has created its digital currency, Ether, to motivate programmers to turn on the Ethereum protocol on their personal computers. Moreover, the programmers make up for digital Ether to share their computer resources. And write suitable applications that keep the network in good shape.

In a similar way to what happens in the world of bitcoin. Where metalworkers exist paid to maintain the bitcoin blockchain by resolving mathematical issues. Allowing them to add transactions to the general ledger. It also pays developers to build intelligent contracts and launch them on the Ethereum platform, giving three ethers for each block they add to the book. Ether is suitable for users who want to access smart contracts on the Ethereum platform.

Ether first launched in July 2014 in an initial currency offer at about 40 cents. At the height of its ascent, Ether hit a record high of $1,417 in January 2018. According to CoinDesk. However, Ether’s price has now fallen to $114 amid frantic digital currency sales. And also, negative concerns and reports of cryptocurrency manipulations and thefts. Which has lost 73% of its value over the past year.

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Why Was Ethereum Founded?

The Ethereum (vital Patrin), a 19-year-old Canadian-Russian youth, existed created to exploit bitcoin technology to democratize organizations, businesses and currencies. And to enable users to (create their own countries with their entire constitution). Putting power, decision-making and economic control in the hands of individuals. And removing it from the world’s central banks and monopolistic companies. Which led to those affected parties standing up to the success of the project.

Therefore, In 2013, Patrin launched a technical document detailing his ideas about Ethereum, existed rewarded with the Thiel Fellowship and a $100,000 cash prize. And also, his concept attracted other developers. Such as co-founders Dr Gavin Wood, Joseph Lappin. He joined him in launching a crowdfunding campaign in July 2014, earning $18 million in a group sale. Making it the most successful of all time, followed by frontier’s launch in July 2015.

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