The first question most people ask when they hear about Ethereum is, What is Ethereum? Ethereum, in short, is an open software platform based on blockchain technology that can be used to build decentralized applications, which are applications that do not rely on third parties to work. It was proposed in late 2013 by Vitalik Buterin and launched in 2015. Since then, the community has grown exponentially, with millions of developers using the platform to build new applications and give existing ones an upgrade. And there are some important factors you should know before investing in Ethereum.
What is Ethereum
The first step in understanding what Ethereum (ETH) really is, is to grasp that it’s much more than just a digital currency. In fact, if you stop right now and think about it, there are very few coins that don’t claim to be more than just a currency. But ETH isn’t just a currency. It has smart contract functionality baked into its system at its core… So what does all of that mean? What makes Ethereum so special?
Let’s break it down As a decentralized platform, Ethereum allows developers to build apps on top of their blockchain technology. These apps can serve as anything from voting systems to contracts for your morning cup of coffee (the coffee shop pays using an app built on top of Ethereum). There are even ICOs that have been created solely for crowdfunding projects; investors send Ether over to fund these projects and receive tokens back once they’re complete.
Read This : What is Bitcoin ?
Examples of potential real-world use cases
There are a number of potential real-world use cases for ethereum, some of which you’ve probably heard about (like smart contracts), but many of which will be developed in coming years. As more and more businesses find ways to leverage decentralized applications, ethereum could become a foundational technology in industries ranging from insurance to banking to transportation.
The beauty of ethereum is that it doesn’t need to be tied to any one industry; instead, it can serve as an underlying technology that powers hundreds or thousands of different apps—an approach similar to Linux, which has been used as an underlying operating system for Google Chrome OS and Android phones among other things.
How to buy Ether
Go to Coinbase (or your preferred exchange) and set up an account. It’s much easier if you have a bank account already linked with an exchange, so you can add payment information through there. Otherwise, linking a credit or debit card will work fine too! Simply enter your billing information on the ‘Add Payment Method’ page in settings. Then buy some Ether by exchanging your local currency, like U.S. dollars or Euro, for Ethereum using one of the above exchanges.
Why should you care about Ethereum
Bitcoin introduced blockchain technology to many people, but Ethereum has taken it a step further. In addition to being a cryptocurrency, Ethereum allows for software code to be run through its network. This makes it possible for developers to develop apps on top of it (called DApps), opening up an entirely new world of possibilities. The future of blockchain technology appears very bright! It’s estimated that by 2020, 10% of global GDP will be stored on blockchains. If you’re looking to get in on the ground floor of something big, you might want to take a look at Ethereum.
It was initially released in 2015 and has been rapidly gaining popularity ever since. Learn more about what Ethereum is, how it works, and why you should care about it. Cryptocurrencies are nothing if not volatile, so as with all investments make sure you know what you’re getting into before buying in. That said, most experts believe that when things settle down there will be a place for cryptocurrencies like Ethereum – which offer fast transfers and low transaction fees – as well as some other coins out there with stronger use cases than just speculation (such as Ripple).
Right now companies are racing to implement these technologies into their infrastructure so they can stay ahead of the competition. Many businesses have also formed blockchain consortiums to figure out how best to take advantage of it, while others have begun using blockchains without fully understanding its underlying technology. The challenge right now is simply educating people about how it works.
Will it compete Bitcoin ?
There are many people that believe that Ether will take over Bitcoin, but can it really happen? One of the main issues with Ether is that it simply doesn’t have enough media coverage, especially in comparison to Bitcoin. There are two sides when it comes to buying Ether as a currency – you may want to invest in something like a coin or token (similar to stock shares) or perhaps you want to buy Ether as an actual currency.
For now, we think that investing in Ether as a currency is probably your best bet. However, if you do decide to invest in coins or tokens, there are plenty of options out there for you. At present, Coinbase is one of our favorite places to purchase digital currencies such as Ether. It has excellent security features, which means you don’t need to worry about any potential losses from hacking or theft. In addition, it has some great customer support systems in place should anything go wrong while you’re trading digital currencies on their platform.
Read This : What is Cryptocurrency ?
The Future of Ethereum
Two Possible Futures for Ethereum The Future of Ethereum: Two Possible Futures for Ethereum Ether, The Crypto-Fuel Behind an Increasingly Popular Cryptocurrency Coin The Past & Present: How did we get here? Originally invented by Vitalik Buterin as a platform to more efficiently develop decentralized applications and contracts, it has morphed into a cryptocurrency itself. In addition to being fuel for using its blockchain in transaction, ether is also traded on exchanges like other cryptocurrencies such as bitcoin.
Ethereum is set to be a major player in distributed computing. While bitcoin aims to disrupt PayPal, MasterCard, Visa, and other financial institutions, Ethereum has its sights set on disrupting Google. Not in search or advertising or self-driving cars but on an even bigger scale: distributed applications (DApps). Much like bitcoin will make bank transactions transparent, Ethereum aims to bring that transparency to all of our data. Let us know your thoughts below!