Ethereum is a crypto technology that allows sending and receiving digital assets and powering applications for worldwide use. People often confuse it with Ether (ETH), which is this blockchain’s native currency.
Did we intrigue you, and you’d like to learn more about Ethereum? Here is a quick guide on the basics of this technology!
What Is Ethereum in Simple Terms?
Ethereum is an open-source blockchain project that features a decentralized network. Ether is the token that powers this network and allows people to trade crypto and make other transactions.
Many consider Ethereum to be an advanced internet technology. It’s the next step compared to what we are used to because users power this network. It supports decentralized exchanges, finance transactions, and apps.
Ethereum is a convenient way of performing transactions while bypassing banks and other centralized authorities. The network operates on worldwide computers that join together in a single supercomputer.
Smart contracts are the foundation of Ethereum. They are automatic and executed as programs. That means there’s no risk of tampering, fraud, or third-party involvement. The network recognizes the terms for a transaction and acts accordingly.
Ethereum’s Continuing Evolution
It was in 2013 when Ethereum first appeared, which suggests this is a new network. The original developers’ idea was to improve Bitcoin with advanced scripting and smart contracts. Once the BTC community rejected that, they created a new blockchain.
Ethereum has continuously evolved until today. Its market cap is now above $210 billion, which is a result of many successful upgrades. Ethereum 1.0 appeared in 2015, and it only allowed users to execute smart contracts and mine ETH. The developers are currently in the Ethereum 2.0 phase, which still needs some work. However, this is a promising blockchain network, and its reputation in the crypto world proves that.
Criticisms of Ethereum
This network’s critics pinpoint that traffic jams often happen on Ethereum. As a result, the transaction volume lowers instead of reaching new record highs. That leads to consuming more energy, which is not eco-friendly.
The creators don’t neglect that Ethereum isn’t perfect. They plan a major upgrade by shifting to PoS (proof-of-stake) instead of PoW (proof-of-work). Ethereum should also feature shard chains soon, and these ideas should allow spreading the network’s workload. As a result, they believe the next version will be more sustainable and scalable.
What Is ETH Trading?
ETH is an abbreviation for Ether, which is the native currency used on the Ethereum network. The price statistics indicate that the ETH value is above $4K in December 2021.
As you might assume, ETH trading involves buying or selling this currency. You’ll find this asset in many reputable crypto exchanges. Depending on the platform, you can acquire it for fiat money or other digital assets.
Is Ethereum Better Than Bitcoin?
Bitcoin is the staple of the crypto world, and this digital currency is worth far more than the competitors. Ether is the most stable and highest-valued altcoin, which is a term describing all coins apart from the BTC.
If we are talking about networks and their potential, Ethereum has a more active user base. Some believe it’s more versatile, and most experts agree its value will continue rising in the coming years.
How Does Ethereum Make Money?
Ethereum is a decentralized network powered by its users. Validators and miners participate in network operations, which usually involve mining ETH. In return, they receive different rewards, with the most common one being the ETH token.
How Long It Takes to Mine Ethereum?
The time required to mine 1ETH will depend on your computer’s power. Since more miners are joining, it’s becoming more difficult to mine Ether. If you use a 100M/S hash rate, you could mine at around 0.00030902ETH per hour. That means it will take more than 134 days for a single ETH. Don’t forget to consider electricity costs and other potential expenses included. With the right calculations, mining ETH could be profitable.