Sunday, April 14, 2024

What is Ethereum

What is Ethereum

Ethereum is a universal tool for running decentralized applications powered by smart contracts. The ether cryptocurrency is the exchange unit of the ecosystem. Ethereum is sometimes called Bitcoin 2.0, but despite a certain similarity, these projects have fundamentally different purposes.

Why do you need Ethereum?

The Ethereum blockchain enables everyone to use all the advantages of distributed ledger technology when performing specific tasks. After the advent of the Ethereum system, it is no longer necessary to create a personal crypto network. For a relatively small fee, you can use a ready-made solution.

Tens of thousands of computer applications written in different programming languages ​​could now run and interact with each other on the same site, which significantly expanded the scope of blockchain technology. Smart contracts effectively support transactions and contract compliance in a fully virtualized environment.

Thus, each qualified programmer can create his own application based on the Ethereum ecosystem, working according to a strictly established algorithm.

Ethereum platform cryptocurrencies

On the basis of the Ethereum platform, many ICOs are carried out, for which a single standard for issued tokens called ERC 20 was developed. The ERC 20 standard guarantees that all projects comply with fixed security standards and guarantees their stability within the network.

In addition to the ETH token, a large number of other cryptocurrencies work on the Ethereum blockchain. And each user can issue their own tokens. True, strictly according to predetermined parameters. Compliance with the rules of the ERC-20 standard is necessary to ensure the normal interaction of personal virtual assets with the rest of the system.

A secondary product of the network is Ether, a currency used as a consumable to power smart contracts. The developers believe that ETH is a digital fuel that supports the functionality of a virtual machine. The EVM is designed to prevent a denial of service attack. The EVM controls the prohibition of unauthorized access to the internal state of the program deployed on the Ethereum platform, preventing potential interference within the network.

By and large, Bitcoin and Ether cryptocurrencies are not direct competitors. Ether is an internal means of payment for clients of a decentralized system, and Bitcoin is an international financial instrument that allows you to make payments anonymously and with a minimum commission.

On the Bitcoin network, the cryptocurrency is the final product, it is the whole raison d’être of its blockchain. Bitcoin is a digital analog of national currencies. ETH coins are more like digital shares of a company that provides services to clients within a peer-to-peer network.

Sam Allcock
Sam Allcock
Sam heads up Cheshire-based PR Fire, an online platform that has already helped over 10,000 businesses to grab widespread media coverage on their news at an extremely accessible price point.

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