Most of us are used to spending money that we can actually hold physically. However, buying things online using a certain currency is gaining more popularity. It is basically, the convenience and the quickness of the process that makes it very attractive to most consumers. The currencies that we grew knowing are backed by certain organizations, which are managing them all the time. They can dictate their current value and have everyone abide by it. Now, with cryptocurrencies like Ethereum people can have access to an open-source and public currency that everyone can explore. It is basically like Bitcoin.
Ethereum (Ξ or ETH), is also a popular cryptocurrency which people start to invest into. It features a smart contract functionality that allows people to trade-settlements and performs other important actions. The actions can be executed automatically if the preprogrammed conditions are met. The cryptocurrency token that is being provided by Ethereum is called “ether.”
Ethereum is a platform where smart contracts run. The applications can work without the possibility of censorship, downtime or third-party interference. It is a good place for performing your transactions without having the fear of being compromised. There are no manager or a middleman with Ethereum. The apps run on a blockchain which is custom built.
The blockchain is a shared global infrastructure which can represent the ownership of certain properties. It can also move value around, which is one of the most important functions.
Ethereum Vs Bitcoin
History of Ethereum
It was first a result of the research and work of Vitalik Buterin in 2013. He had done some work in regards to Bitcoin which makes him knowledgeable about cryptocurrencies. Vitalik Buterin described on on the Whitepaper smart contract architecture and the Ethereum protocol. He elaborated its technical design and rationale. Then it was formally announced at The North American Bitcoin Conference in January 2014.
On July 30, 2015, the system finally went live with 11.9 million coins. These are premined for the crowdsale and accounts for about 13% of the total supply circulating. Ethereum, however, was made into two blockchains in 2016. This was due to the collapse of The DAO project. They are named Ethereum Classics and Ethereum (majority fork has kept the name).
Trading with Ethereum
Ether is also volatile just like other cryptocurrencies. It depends on the demand and supply. According to expert crypto traders, “This, however, a characteristic that also makes it good for trading.” It has a certain value just like bitcoin so it can be sold or bought for a value equivalent to other cryptocurrencies or Fiat.