Ethereum: what is it?

Contrary to popular belief, Ethereum is not a cryptocurrency like the Bitcoinbut a virtual and free platform using blockchain technology. It’s a kind of server decentralized global, peer to peer and ultra-secure. Ethereum was created and launched in the summer of 2015 by Vitalik Buterin, a young computer scientist with a passion for Bitcoinwith the aim of operating apps more commonly known as “dApps”. Ethereum uses a Turing-complete type language named Solidity, a mix of C and JavaScript. The use of a blockchain has many advantages, such as high network security, operational reliability, increased protection against data corruption and the inability to modify the history of the blockchain. It is a public blockchain that everyone can consult, hence a high level of transparency. The Ethereum cryptocurrency is called Ether, abbreviated ETH. It serves as a means of payment for miners and is necessary for programmers to use Ethereum.

What is Ethereum used for?

Ethereum can be used in multiple ways. Its potential is limitless except for energy costs and network costs. There are several types of uses, the main ones being:

• send and receive Ether without a bank or service provider;
• program and publish smart contracts, without intermediaries;
• create your own cryptocurrency;
• create, distribute and use dApps.

Smart contracts allow in particular the management of autonomous and decentralized organizations (DAO). Unlike a smart contract, a dApp is not limited in users or uses. Applications can include any service normally requiring an intermediary. For example, you can find:

• token games (NFT) to collect;
• services of online bank ;
• a computer computing power rental service;
• the sending of SMS encrypted;
• insurance;
• prediction markets;
• video games ;
• crowdfunding applications;
• digital art buying and selling services (in the form of NFT);
• automated invoice sending;
• from social networks ;
• management applications cryptocurrency in line.

Even if the potential of Ethereum is not yet reached, it should not be forgotten that its use has a financial, energy and time cost.

How does Ethereum work?

Everything starts from the Ethereum blockchain. Blockchain is a database virtually unalterable decentralized system on which all write operations, such as the transactions and smart contracts are registered. Smart contracts are programmed contracts that execute without an intermediary.

the mining allows verification, recording and securing of any operation performed on the blockchain by forming blocks, each new block being linked to the existing blockchain. It takes about 14-15 seconds to register a block on Ethereum. The Ethereum mining process is currently of the type Proof of Work but is about to change to mining Proof of Stakewhich means proof of stake. This type of mining consumes lessenergyis faster and more cost effective than the type Proof of Work.

It is therefore Ether that powers and powers Ethereum. Miners receive an infinitesimal amount of Ether called gas (Where gas in English) as remuneration which they can exchange formoney fiduciary. Users buy Ether to use Ethereum. To interact with your Ethereum account, you use a wallet (wallet in English), such as Argent, MetaMask or Unstoppable. You can buy, store and sell Ether there. A wallet is used with a public key which makes it possible to announce a transaction and a private key which makes it possible to write this transaction in the blockchain.

Ethereum in the cryptocurrency market

Ethereum has taken its place in the cryptocurrency market and rivals Bitcoin. The abbreviation of Ether is ETH, its unit value represents 179 €. It is the second digital currency on the cryptocurrency market, just after Bitcoin thanks to a market capitalization of several billion. Ethereum is considered a promising blockchain just like Bitcoin. Ethereum has enabled the creation of very innovative new cryptocurrencies. This virtual currency has caught the attention of cryptocurrency enthusiasts and investors!

To buy Ether (ETH), the easiest way is to use an exchange platform, there are a large number of them. However, some platforms are more secure than others and are less likely to be hacked.

What are the differences between Ethereum and Bitcoin?

To help understanding, generally we compare the different cryptocurrencies to Bitcoin since they are based on the same principles. Ether and Bitcoin have many things in common. These two virtual currencies have different objectives, Bitcoin could replace conventional money and become the most used currency in the world. Ethereum aims to become a platform on which decentralized applications and smart contracts. The main purpose of Ether is to be used on Ethereum networks. You should know that the quantity of Ether units is not capped unlike Bitcoin. Bitcoin is often called gold digitalEther could be compared to oil.

Bitcoin’s blockchain is very similar to Ethereum’s but the programming language is different.