crytocurrency, the future of digital payments

Introduction to Ethereum (ETH)

The Internet today allows putting online unlimited information, achieved by using cloud storages to store them. Ethereum has its main focus and aim, To remove internet third parties and build a decentralized world computer system.

BRIEF HISTORY OF ETHEREUM

The chief executive officer of Ethereum, Buterin published the whitepaper of ethereum in November 2013. However the platform took a lot of time to be publicly announced, an Initial Coin Offering was then followed by this announcement. Ethereum (ETH) is the official token used on the Ethereum exchange network. currently, the token has a market capitalization of $23,528,436,159. It has also a circulating supply at 107,179,591 ETH.

Ethereum coin

What is Ethereum

Ethereum is seen as a decentralized and distributed computing platform. It enables the creation of smart contracts and Decentralized Applications. Ethereum can also act as cryptocurrencies and other financial system.

What are smart contracts

They are computer programs that process information, in agreement to certain conditions. Take for example: In the legal industry, they can be used to specify the responsibilities of all the parties involved in a legal contract. Smart contracts could also be seen as computer programs which helps verify the correctness of transactions and also validate the results of a transaction automatically.

The smart contracts have some advantages, like Auto-sufficiency, Decentralization, Censorship, Fraud detection etc.

Auto-Sufficiency of Smart Contracts: This shows the ability of smart contracts to perform credible transactions without third party interference. Smart contracts aims to provide a more secure and reduced transaction costs than usually associated with contracting.

Decentralized Nature: The smart contract enables this tokens to be distributed by various network points, i.e. they are not held on one single server.

Fraud Detection: This is very necessary, it means that the contract can’t be annulled or hacked. It serves as a sort of protection to this tokens.

Censorship: Computer eliminates censorship from a central authority by distributing protocols all around the world.

In Conclusion

This new Ethereum technology combines user-control and access. Each time a user makes changes to the notes in the platform, these changes are then automatically saved in the nodes of Networks.

Ethereum platform is also being used to develop some other digital currencies. With the ERC-20 and ERC-721 Standards defined by the Ethereum foundation, other developers can now develop their unique versions of Ethereum tokens and then raise funds to kickstart its creation with an Initial Coin Offering (ICO).

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