What is Ethereum

What is Ethereum?

When people heard about Ethereum, they usually link this term with cryptocurrency, such as bitcoin. Though this is not really the case, it is still imperative to understand and learn more about Ethereum and realize that this isn’t just a simple type of cryptocurrency. Ethereum is a platform, open-software in nature, and particularly designed on blockchain technology, enabling developers to create and deploy the decentralized applications.

What’s Ethereum?

Nowadays, Ethereum is considered one of the newest technologies available. While it has been known that bitcoin is aimed at disrupting PayPal as well as online banking, Ethereum aims to use blockchain in replacing online third parties and those storing data, transferring mortgages, and tracking complex financial tools and instruments.

Ethereum is also a known open platform allowing developers to create as well as set out the decentralized applications, including complex financial and legal applications and smart contracts.  Ethereum is also categorized as programmable bitcoins. Developers can actually utilize this in creating shared ledgers, digital organizations, markets, and other numerous possibilities that require absolute agreements and data even without a middleman.

Ethereum was released in 2015. Bitalik Vuterin has seen the potentials of using Ethereum underlying blockchain technology.  At present, Ethereum is hailed as the second-highest coin market cap and believed to outweigh bitcoin as a valued investment and the most famous cryptocurrency in the world as well.

Ethereum Blockchain and Virtual Machine

If there is one interesting thing about blockchain, which came before the Ethereum that you need to know is that their OS or operating system was solely created for the purpose of exchanging particular coded items over the contacts or transactions mainly being the supported cryptocurrency of the network. This had been seen by Bitalik Vuterin as an important feature with lots of room for improvements and expansions.

To respond to this, he presented a solution allowing developers to do some customization in forms of data that they can store or send on a blockchain network. Upon introducing the Ethereum Virtual Machine, this has been made possible. The corresponding programming language, the Solidity enables the developers to create customizable transactions referred to as smart contacts.

How to Use the Ethereum

Thinking about how Ethereum is used for somewhat sounds intimidating, however, this can be rewarding as well. Any person with a smartphone or computer can try this out provided that they own ether or unique code pieces allowing updates to blockchain ledger.

The Ethereum Wallets

You need to initially store your ether securely in a safe place. Losing private keys is a caveat, and this is a more serious issue than misplacing your password. This could actually mean losing your ether for the rest of time.

Getting rid of parties that you trust seems to be like a double-faced scenario, and while the intermediaries aren’t needed anymore in verifying transactions, help desk that one can turn to for some help in recovering your own secret key is lacking. There are numerous choices for wallets in storing cryptocurrencies such as hardware wallets, desktop wallets, paper wallets, and web wallets. Choosing a wallet mainly depends on your own preference for security and convenience.

Desktop Wallets

These wallets run on a laptop or personal computers. Ethereum client download is a highly possible option. There are some clients that are written in diverse programming languages and with dissimilar performance trade-offs.

Hardware Wallets  

These types of wallets are commonly small as the finger but can provide individuals of the best of both worlds. These play a vital role in securing devices that can frequently be detached from online and signing transactions, even without going online.

One more storage option is printing or handwriting private key carefully in a slip of paper referred to as paper wallet, then lock in a place in which you know to be safe such as deposit box. Web-based tools can easily generate key pairs directly into your PC and not on the website servers, which can possibly leave the keys more vulnerable especially if the website is hacked. If you lose your key, it will be gone for good. The best way is, therefore, allocating time to create multiple copies of private keys and position them in different secured locations.

These are just a few of the many uses of Ethereum. You can conduct your own research about Ethereum.