Cryptocurrency

All You Need To Know About Ethereum – A Guide For Beginners

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When it comes to cryptocurrencies, the first name we associate with is Bitcoin. The scenarios have changed now as the market is now flooded with an array of crypto coins, which are no less than Bitcoin when it comes to technology. For any person who stays in touch with cryptocurrencies and is actively involved in crypto trading, Ethereum shines as one of the most trustable names in the industry. When it comes to features and services, you cannot categorize Ethereum as merely a cryptocurrency, as this would be an insult for the Ethereum community. Managed and operated by a Swiss non-profit organization named The Ethereum Foundation, Ethereum works as an open-source, public, blockchain, and smart contract platform that enriches the decentralized developers to create robust DApp systems in a simplified and economical manner. It provides a distributed computing network and operating system infused with a smart contract (scripting) facility. Ethereum controls the crypto market, being the second-largest virtual currency in terms of market capitalization.

Launched in 2015, Ethereum (ETH) is the brainchild of Vitalik Buterin, who conceptualized the pedagogy to strengthen the hold of cryptocurrencies in the global financial sphere. The Ethereum network is powered by its native crypto coin known as ‘Ether,’ which has been designed to support the core ecosystem of the firm by rewarding miners for performing computations on the network.

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Besides its advanced technological expertise, Ethereum is known for its Ethereum Virtual Machine solution or the EVM module, which makes it stand out from its competitors. EVM streamlines and simplifies the processes involved in the creation of DApps for the developers who strive to bring the unthinkable blockchain applications back to reality. It allows the execution of scripts via an international network of public nodes. Unlike Bitcoin, the instruction set used on EVM is Turing-complete. Also, to reduce the risks of spam and facilitate allocation of resources on the network, the EVM uses ‘Gas’ pricing mechanism.

The Ethereum Timeline

2013

Ethereum was proposed by a programmer and co-founder of Bitcoin Magazine, Vitalik Buterin, in his whitepaper. His goal was to design a platform that could aid in building decentralized applications.

2014

In January 2014, Ethereum was announced at the North American Bitcoin Conference in Miami. The first Ethereum software project was developed by a Swiss firm named GmbH. Further, during the same year, a pre-sale of Ether token was organized to pool in a stable network of miners and shareholders for the project’s long-run. The event raised $14 million.

2015

The very next year, in 2015, Frontier, the first beta version of Ethereum, was launched by the firm.

2016

A protocol upgrade named Homestead was added to the Ethereum network. Through a crowd sale, the DAO collected a sum of $150 million, which turned out to be a major catalyst in Ethereum popularity in the crypto media zone. In the same year, the DAO was hacked by an unidentified group of scammers, which shocked the Ethereum community to the core. This was followed by the division of the network in two parts: Ethereum and Ethereum Classic. Ethereum strived to increase its DDoS to stop further intrusions.

2017

Globally-acclaimed institutions and networks widely adopted Ethereum. It was endorsed and supported by Russia. AVATrade and eToro added support for Ether coin. The EVM solution was used by new companies to create their native derivative tokens. All this boosted Ethereum’s control in the market and increased the market capitalization rate of the currency immensely.

How To Put Ethereum In Use?

  • Ethereum can boost the Decentralized Finance or DeFi sector. This includes the facilitation of smart contract-based loans, decentralized exchanges, and minting of stablecoins. MakerDAO is a real-life example in which Ethereum led to the creation of stablecoin DAO that is pegged against Ether and always has a value of $1.
  • The system is based on blockchain technology, which enables the validation of data openly and transparently. Thus, Ethereum can be used for digital identification.
  • As data stored in the Ethereum blockchain is immutable and secured, it can play a pivotal role in managing the data in the healthcare sector.
  • Ethereum can facilitate the tokenization of security tokens on its blockchain network and thereby allowing the issuers to transfer and transact them at their convenience without any hassle.
  • It can improve the election polling system by infusing transparency and security.
  • Ethereum can also play a major role in improving the arena of trade finance by making it more efficient, secured, and streamlined.

Top Examples of Ethereum Apps

  • WeiFund- It works as an Ethereum-powered decentralized and smart contracts-based crowdfunding platform. The contributions are turned into digital assets, which are then traded on Ethereum.
  • Augur- The platform awards participants to make correct predictions about the outcomes of the real-world event.
  • Provenance- It shines as one of the most popular Ethereum-supported platforms which improve the supply chain system. Provenance allows all stakeholders to give real-time information about the origin and history of products.
  • Decentralized Autonomous Organizations (DAO)- DAO empowers firms to run a leaderless network through smart contracts and decentralized rules and regulations. They can be owned by any person who via ether tokens get voting rights to participate in decision making.

Conclusion

Ethereum is a revolutionary platform that has the potential to provide anything and everything through its apps and programming. It leverages any concept, process, or operation to reap the benefits of blockchain technology and decentralized operations. With open-source programming and simplified smart contract-based decentralized apps, the Ethereum users can attain success in all forms. The network is growing rapidly and is likely to strengthen its operations in the coming years. So start trading ETH to earn lucrative profits. You can buy ETH from the platform like Ethereum Code. It is a platform that mainly focuses on making a profit from ETH.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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