Ethereum

Ethereum is a type of crypto technology, similar to Bitcoin, which allows anyone to send cryptocurrency to anyone else. The key difference between Bitcoin and Ethereum is that Ethereum is a programmable blockchain, which ultimately means Ethereum can support several different digital assets and many crypto projects.

Ethereum Basics

Ethereum was first launched in 2013 by Vitalik Buterin, and has since been the second most popular crypto project behind Bitcoin.

The Ethereum network has a native cryptocurrency called ether (ETH), which is a scarce asset protected by a Proof-of Work network, and tradable via the Ethereum blockchain. ETH is the key to the security of the Ethereum financial ecosystem as every transaction is sent through a Proof-of-Work, decentralized system to be verified and eventually recorded by ethereum mining machines.

Miners are crucial to the Ethereum network as they are responsible for verifying and recording everything that happens on the network. Without miners, the Ethereum blockchain would be vulnerable to centralized control and nefarious actors. However it should be noted that whenever a user transacts in or uses an Ethereum application, they must pay a small fee known as a “gas” fee. These fees are used to support the mining network.

Popular Features

While Bitcoin’s overall goal is sovereign monetary control for the individual, Ethereum was made with several other goals in mind in addition to banking for everyone.

Ethereum, like Bitcoin, offers a peer-to-peer network that allows anyone to make transactions and agreements with anyone else without the need for an intermediary. Smart contracts were developed for use on the Ethereum network, allowing participants to make complex contractual agreements using crypto, which execute when conditions are met.

- For example, if two individuals wanted to make a deal that required more than one transaction and lots of time, such as a mortgage payment deal, they could use Ethereum to create contracts whereby once the total amount of the house is paid off over time, the buyer would receive the full ownership rights to the house. All ownership rights could exist on the Ethereum blockchain, and would be protected by the robustness of the Ethereum network. Plus the entire transaction wouldn’t require any intermediaries, and could be anonymous.

Also, with a decentralized infrastructure, Ethereum is protected against any outside influences that may come from governments, organizations, powerful people, and so on. The network and everything that happens on Ethereum is resistant to any form of censorship or intervention.

The Ethereum network is one of the most popular networks in the cryptocurrency industry because of its flexibility and robust options. Popular tools that have been developed on Ethereum include DeFi, NFTs, dapps and DAOs.

Swapping between coins is also possible on Ethereum which means users can swap their ETH for other digital assets like USDT, DOGE, SHIB, and many more. But if you’d rather stick with Ethereum, staking allows users to earn interest on Ethereum-based tokens.

Another exciting feature is the ability to stream ETH to anyone, paying them in real time rather than in lump sums. This feature is broadly used by podcasters, musicians, and anybody streaming content, but theoretically it could be used in any scenario that requires payment per time.

Why Ethereum is Valuable and Why Use It

Because of its decentralized features, Ethereum is often looked at as a store of value that is protected from outside influence. In other words, it is considered a type of safe haven asset as it’s value is not denominated in fiat or controlled by banks/governments, yet it is fungible and tradeable within its own network.

The wide range of features allow Ethereum users to secure more than their assets, but also their businesses, agreements, and applications. Plus users can take on loans and even earn interest by holding certain Ethereum tokens.

Interactivity with emerging technology is also a valuable piece of Ethereum. NFT, Web3 integrations, and Ethereum’s overall programmability have made the crypto incredibly well-positioned for the near future.

Using Ethereum

Anybody can use Ethereum. Simply download an appropriate crypto wallet for you, load your funds or exchange them for Ethereum and the digital world will be at your fingertips! After buying your ETH, or exchanging other crypto for ETH, you’ll be able to use platforms like Fayre to mint NFTs since Fayre utilizes the Ethereum blockchain (as well as others) to allow users to mint NFTs.

The Ethereum network is incredibly robust and deep, and we are just scratching the surface here. But the most important takeaways for now are that Ethereum is a decentralized, peer-to-peer network designed to be programmable. There are countless applications and cryptocurrency projects that are reliant on Ethereum, and yet the network is still expected to explode as further advancements in crypto adoption and technology become a reality.