What is Ethereum Cryptocurrency

What is Ethereum

Definition of Ethereum

Ethereum is a digital platform that embraces blockchain technology and expands its use to a wide variety of applications. Ether is Ethereum's native cryptocurrency and the second largest on the market.

History of Ethereum

The Ethereum platform was created in 2015 by the Russian programmer Vitalik Buterin, with the aim of creating an instrument for the development of decentralized and collaborative applications. Ether (ETH), its own cryptocurrency, is a token that can be used in transactions with this software. Like Bitcoin, Ether exists as part of an autonomous peer-to-peer financial system free from government interference. As with Bitcoin, the value of Ether has skyrocketed in a short period of time.

In January 2016, Ether was trading around $1, and in January 2018, cryptocurrency peaked at $1,391. However, in October 2020, Ether is trading far from its historic high – below $390. Its value has been volatile, with frequent fluctuations throughout the day. While it is only one of hundreds of cryptocurrencies, it is also one of the few that has a significant market capitalization, along with its two main rivals, Bitcoin and Bitcoin Cash..

Funtion of Ethereum

Ether, like other cryptocurrencies, uses a digital comparison library to record all transactions. They are publicly accessible, completely transparent and very difficult to modify afterwards.

This 'digital accountable book' is a denominational blockchain or block chains that are built through the data mining process.

The miners are capable of verifying groups of ether transactions to form "blocks" and encode them by solving complex algorithms. These algorithms can be more or less difficult at the same time, as a way to keep constant the time of processing of the blocks (around one every 14 seconds).

The new blocks are then linked to the previous block chain and the miner in question receives a compensation, and then, a fixed number of ether tokens. Normally, 5 units of ether, only this figure can be reduced if the cryptomoned continues to rise.

Security of Ethereum

In this aspect, cryptocurrencies are machines that as they have more users, they become more secure. That generates more trust in the network, which in turn generates more users to join, thus creating a kind of positive feedback.

In addition, all transactions are validated by an asymmetric cryptography system that prevents their modification by third parties.

Pros of using Ethereum

  • The Ethereum platform benefits from all the properties of the Blockchain technology it works with. It is completely immune to any third-party intervention, which means that all decentralized applications and DAOs deployed within the red cannot be controlled by nadie.
  • Any blockchain red is formed around a consensus principle, which means that all nodes within the system need to be in compliance with every change that takes place within it. This eliminates the possibilities of fraud, corruption and redundancy.
  • The entire platform is decentralized, which means that there is no single possible fall point. Therefore, all applications will always be online and will never be deleted. Furthermore, its decentralized nature and cryptographic security mean that the Ethereum red is well protected against possible hacker attacks and fraudulent activities.

  • Cons of using Ethereum

  • Despite the fact that the smart contracts are thought to make the red sea the fallos prueba, they can only be as good as the people who write the code for them. If there is always room for the human error, any error in the code can be exploited. If this happens, there is no direct way to deter a hacker attack or an exploitation of dicho error. The only possible way to do it would be to reach a consensus and rewrite an underlying code. However, they are completely against the essence of the Blockchain, as it is supposed that they are an unchangeable and unalterable book of accounts.
  • El DAO, which is the number of a particular DAO as of April 30, 2016, was attacked and robaron over 3.6 million Ehter tokens. The attacker exploited a "recursive call error" in the code, essentially draining the DAO funds into a "DAO hijo", which had the same structure as the DAO. The loss of a large part of DAO's financing without being the only consequence of the attack, which basically undermined the trust of users throughout the Ethereum network, with the value of Ether falling from more than 20 dollars to less than 13 dollars.

  • How to mine Ethereum?

    There are two main ways to obtain Ether: buy it and minándolo.

    The most common and perhaps most convenient way to buy Ether is to buy it on the purses. All you need to do is find a purse that trades with Ether and operates within your jurisdiction, open an account and use it in your bank account, transfer bank, in some cases even your bank card to buy Ether tokens . They must be kept in a billet, which can be provided by the same bag, by Ethereum's native Mist browser or by other specialized services.

    Alternatively, you can obtain Ether through peer-to-peer trading, paying with any agreed currency, including Bitcoin and other cryptocurrencies. This can be done online and in person. Peer trading is very popular among Bitcoin users. However, due to the virtually unlimited supply of Ether tokens and the fact that the Ethereum platform does not allow for complete user anonymity at the forefront of the system, Ether is generally obtained through trades.

    Another way to obtain the Ether tokens is minándolos. Mining Ethereum uses work tools, which means that miners provide their calculating power to solve a complex mathematical problem with the "seal" fin and confirm a block of actions within the red. Miners who successfully complete this task will receive a reward for each block mined.

    What Is a Ethereum Wallet?

    Ethereum wallets exist in two forms dedicated applications / hardware that allow you to interact with your Ethereum account. Think of them as an Internet banking application: they are a bank. Your wallet allows you to view and manipulate your balance, send transactions, and connect to applications.

    List of wallets that accept Ethereum

  • Edge Wallet (mobile)
  • Cex.io (desk and mobile)
  • Gemini (desk and mobile)
  • Binance Wallet (desk and mobile)
  • Coinbase Wallet (desk and mobile)