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Everything You Need To Know About Ethereum

Everything You Need To Know About Ethereum

While talking about cryptocurrencies, people often mention Ethereum. Ethereum is a network with a cryptocurrency called Ether or ETH. In contrast to currencies like BTC, Ether was designed to compensate the miners who worked on the network.

So, it is also a blockchain network that offers different functions like smart contracts. The market volatility influences the Ethereum (ETH) Price, giving promising results for various investors and traders.

There is a lot to know about this blockchain network which will provide insight into its functionality beyond the crypto market.

What is Ethereum?

Ethereum is a software platform that is based on a blockchain network. It includes a payment system and a decentralized app store. Developers can build applications using smart contracts on this network with minimal censorship.

All the users on the network can conduct safe transactions. The platform has an Ethereum Virtual Machine or EVM to help developers create decentralized applications with real-world trading and finance applications. Currently, this network has the second-largest market capitalization after Bitcoin.

The History

The Ethereum network came into being in 2015. ETH has seen significant development as a form of cryptocurrency, crossing a growth rate of over 15000%. The beta version was named Frontier and launched in 2015. The following year, it gained much media momentum with the crowd sale of 150 million dollars. A protocol upgrade, Homestead, was added later. It saw meaningful use through decentralized applications and smart contracts.

Decentralized Applications

The blocks and technology for decentralized computing systems use centralized systems for storing data. A centralized system can ban users depending on their activity because everything is stored in a single system. It gives added protection to the user data without censorship.

In a decentralized blockchain network, only the user controls who accesses their data. It allows control over personal information without storing it with any service provider. However, the data in a centralized system is vulnerable to cyber-attacks and can be stolen by hacking into the central system.

Smart Contracts

Smart contracts validate the transactions made through the platform. It is a reliable method of payment between two parties. Both of you agree to the transfer. The automatic payment system is possible with smart contracts. It automatically transfers the money after verifying the eligibility criteria. However, running a smart contract requires a payment fee, usually in ETH.

Real-World Uses of Ethereum

There are significant benefits of using Ether that go beyond developing decentralized applications. Here are some uses of ETH:

• A data storage facility on a decentralized system.
• It has applications in the healthcare system where patient data can be stored and shared without compromising privacy.
• It can allow building DAPPS or decentralized applications.
• Allows for safe and secure direct transactions between two parties.
• Countries can use it in their voting system for added security and transparency.

Ethereum Price Volatility

ETH is the second most reliable cryptocurrency after BTC. But since it has lower transaction fees than Bitcoin, investors are shifting towards the fight against price volatility. Major platforms show price volatility as compared to smaller platforms.

Ethereum (ETH) Price is predicted by looking at the relative strength of the price with its historical volatility. The prediction about the price is made at different time frames from 14 days to 100 days.

Conclusion

Ethereum is a flexible network with different applications like smart contracts and decentralized applications. It has high community support and a better ecosystem than other blocks and technology networks. It offers a clear roadmap of what to expect and how to navigate within the platform. Developers have clarified the expected improvements and regularly bring upgrades to keep up with the changing technology.

About Author

Dana Cull

Dana is a digital content creator with a self-confessed obsession with writing. She is also an avid reader and loves to spend her leisure hours watching documentary films from different directors across the world.