Bitcoin is saturated, what next?
Here comes the savior Ehtereum making your investment small and returns big.
Ethereum is the second most popular, trusted & invested decentralized blockchain platform after Bitcoin. But Unlike other cryptocurrencies, Ethereum is not limited to serving only one purpose – Ethereum is wishful to be much more than simply being a medium of exchange or store of digital value.
I know I know this isn’t enough & you have a lot to ask and a lot to discuss what is Ethereum and how does it works but don’t you hit your brain. Let’s unpack what is Ethereum and how does it work, who uses Ethereum, how does Ethereum pays & much more.
What is Ethereum?
Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract functionality. It’s a blockchain that is distributed i.e it is not stored in one place which means it is publicly distributed.
The core idea of Ethereum blockchain is to make a world-first decentralized computing system where we can use all the resources also can reduce & share the efforts of computing globally.
We can say that Ethereum is the world’s first decentralized computing system.
How does Ethereum work?
Like all cryptocurrencies, Ethereum too works on the basis of a decentralized blockchain network.
Ether network is designed or distributed in the sense that everyone participating in the network holds an identical copy of the ledger, allowing them to access and see all the past transaction information. Since it’s decentralized in that network it’s solely controlled by all the distributed ledger holders.
The whole decentralized system used blockchain transactions that use cryptography to keep the network secure and verify transactions.
Miners or ledger holders use computers to “mine”, or solve complex mathematical equations that process each transaction on the network and add a new blockchain to the network.
Participants are rewarded with cryptocurrency tokens which are called ether in the Ethereum network.
Apart from buying, selling goods and services ether has been also capable of building applications that run on blockchain software runs on computers that can transfer personal data or handle complex financial transactions.
Ether and Ethereum: are both the same?
Created in 2015 ether is known as the fuel for operating the Ethereum platform. Like other digital currency, ether can be used to pay for goods, services & Investment or as a store of value but it is also used to support the development of applications on the Ethereum network. Whereas Ethereum is a blockchain network on which ether is held or exchanged.
Whether it’s a small transaction or a big exchange the transaction is stored and processed in the Ethereum network. The Ethereum network can also be used in storing data and running a decentralized network.
Rather than hosting software on different servers owned and operated by different other multiple platforms like Amazon, or google it can also be operated people can access the Ethereum blockchain platform getting user-control over data where they are welcome to use the app without any central authority on their head.
Often times the word Ethereum and ether can be used to represent both the network as well as ether.
What is GAS?
Ether is the cryptocurrency of the Ethereum blockchain. Whenever we do any transaction in the Ethereum network a special type of token has been consumed which is known as “GAS”.
If you find Ethereum network as a machine then you can say GAS as a fuel.
To process any computation or transaction you need GAS. The more we pay for the transaction fee the faster our transaction gets completed.
How does Ethereum make money?
The question makes no sense, I would rather rephrase this question as to how you can make money by investing in Ethereum.
I am sure you know how the cryptocurrency industry making millions and billions in the following years and if you too want to dive in the wave then you can also try your hands on the following things:
- Take part in Ethereum bounties or airdrops
- Start Ether Mining
- Become an Ether Freelance programmer
- Start Blogging
- Make Ethereum Dapps
- Ether cryptocurrency: Ether has so many eyes on it as it is a blockchain-based cryptocurrency with the currency wallet that is a safe, fast & integral part of ether making it secure and environment friendly you can do transactions, buy or pay for goods.
- Smart contract: we can run smart contracts in the Ethereum blockchain which is an intriguing use case of ether and Ethereum when the contract conditions have been met.
- Decentralized autonomous organization (DAO): it’s an organization whose rules are written in a smart contract.
- Smart property: it’s a property that you can store digitally. Whichever property you have, you can store it digitally for documentation like a smart contract.
- Digital apps/ dapps: Ethereum dapps allow users the benefits to play games, pay, buy or transaction, track on investment, follow social media, and much more.
- Non-fungible tokens (NFTs): Allow artists or others to sell their art or items directly to buyers with the help of smart contracts.
- Decentralize finance: By using this Ethereum network people are leveraging the power of controlling the money or other asset flow over the government.
- Raising translation cost: Going popular has gained a higher cost which is good if you are earning as a miner but becomes less if you are trying to use the network. Unlike bitcoin, Ethereum demands participation in the transaction to manage the fee.
- Crypto inflammation: No lifetime limit on the potential number of coins this could make it a matter of concern with a strict lifetime limit on the number of coins.
- The steep learning curve for developers: It becomes difficult for developers to pick up as they migrate from a centralized process to a decentralized network.
- Unknown Future: the continuous evolvement of Ethereum for bringing the 2.0 version of it increasing uncertainty of evaluating it from many new validators which is also a big question to think about.
How to buy Ethereum?
Ethereum can be bought just like you buy any other cryptocurrency nowadays.
- Pick a cryptocurrency exchange which is a cryptocurrency exchange and trading platforms like coindcx or coinbase and buy from the exchange platform by paying some universal charge for buying process or trading.
- You need to Deposit some money or link your bank account or debit or credit card in order to do a fund purchasing of ether.
- Once you fund your account you can use the money to Buy Ether at the current Ethereum price along with other assets as well. Keep in mind the taxes as well in buying or selling of ether.
- Use another digital wallet or cold wallet which is not connected to the internet & can’t be hacked or stolen but can secure and store the ether you bought.
Is Ethereum a Good Investment?
You might consider investing in Ethereum due to a few reasons like it has value and is used as a crucial currency, Ethereum blockchain will become more attractive and demanding when it will migrate to its upgraded version, and last more people use the Ethereum network the demand will automatically increase.
But if you ask me is Ethereum a good investment then according to me you can’t forget the fact that ultimately it has no guaranteed returns, valuation, or authority. So the buying decision should be solely according to the well-researched companies who are building the Ethereum network and accepting the exchange of this.
Always remember before investing in ether or any cryptocurrency always remember to be well informed and researched of all the potential risks and benefits that you will bear after investing.