What is it? how does it work?
Ethereum
What is ethereum?
Ethereum, often known as the second most popular cryptocurrency after Bitcoin, is intended to be much more than simply a medium of exchange or a store of value like most other cryptocurrencies. Instead, Ethereum calls itself a decentralised computing network that is built on blockchain technology.
Ethereum operates on a decentralised distributed ledger called blockchain which manages and tracks the currency. Blockchain is a big part of the appeal of Ethereum and other cryptocurrencies. Users can exchange money without the need for a middle man like a bank. Ethereum transactions also enable users to maintain a level of anonymity, even when transactions are publicly available on the blockchain.
While the whole field is referred to in terms of currency, Ethereum is essentially a token that can be spent for a specific purpose enabled by the Ethereum platform. For example, sending money or buying and selling goods are functions enabled by the coin. But Ethereum also offers a lot more than this. It can also form the basis for smart contracts and other decentralised apps.
How does it work?
The Ethereum blockchain is very similar to that of bitcoin, however its programming language allows developers to write software through which blockchain transactions manage and automate specific outcomes. This software is known as a smart contract.
If a traditional contract outlines the terms of a relationship, a smart contract ensures those terms are fulfilled by writing it in code. Smart contracts automatically executes the pre established agreement as soon as predefined conditions are met. This, in turn, eliminates the delay and potential expenses involved in completing a deal without using smart contracts.
