What is ethereum and How does ethereum work?

Over these past few months, cryptocurrencies have been creating a huge buzz. One tweet from Elon musk about bitcoins has stirred interest among amateurs about cryptocurrencies. The most frequently heard cryptocurrency is bitcoin. The whole concept of cryptocurrencies and blockchain is to eliminate the interference of financial institutions or banks. This could revolutionize the way people conduct transactions too.

But apart from bitcoin, there are many cryptocurrencies that the world needs to know and are slowly rising to the top. One such coin is ethereum. If you are a crypto enthusiast and are looking for information on these currencies to become the best investor then you are at the right place. In this article, you will learn all the information about ethereum and how it works.

What are you waiting for? Let’s dive right into the topic.

What is Ethereum (ETH)?

This is a technology that is run by a community to power the cryptocurrency-Ether (ETH). Not only Ether, but it also helps run thousands of other decentralized applications too. This cryptocurrency is open to everybody. Ether is the second-largest cryptocurrency in the world. The most common mistake that most people make while talking about Ethereum is cryptocurrency in itself.

However, Ethereum is an open-source blockchain that is decentralized and Ether is the own cryptocurrency of the Ethereum platform. It also works as a platform for other cryptocurrencies too. Ethereum also facilitates the implementation of decentralized smart contracts.

The primary goal of Ethereum is to allow users across the globe to run and write softwares that defy downtime and fraud. The downtime of software or server can slow down the translation or sometimes the transaction is failed. Ethereum wants to become a worldwide platform for decentralized applications. 

Who are the founders of Ethereum (ETH)?

Ethereum has eight co-founders. Yes! Each of these co-founders has a definite role in the founding of the second-largest cryptocurrency. Ethereum (ETH) has first made its appearance in the Whitepaper by one of the co-founders Vitalik Buterin in 2013. Other co-founders include Gavin Wood, Charles Hoskinson, Joseph Lubin, Mihai Alisei, Anthony Di Iorio, Amir Chetrit, Jeffery Wilcke. 

This cryptocurrency has a long list of founders. However, this cryptocurrency was founded first by Vitalik Buterin, Charles Hoskinson, Amir Chetrit, Anthony Di Iorio, and Mihai Alisie in December 2013. In 2014, Gavin Wood, Jeffery Wilcke, and Joseph Lubin were added as founders. Later in 2014, Charles Hoskinson left the project. Amir Chetrit has also helped in the early stages of Ethereum development and later stepped away.

Vitalik Buterin is a Russian-Canadian who is still working to improve the Ethereum platform. Before co-founding Ethereum, he was also co-founder and also wrote for the Bitcoin Magazine Website. 

Charles Hoskinson has played a significant role in starting the swiss based Ethereum foundation along with its legal framework.

Mihai Alisie has assisted in starting the Ethereum foundation.

Anthony Di Iorio and Joseph Lubin have funded the project in the initial stages of Ethereum development. 

Gavin Wood, a British programmer who implemented the first and foremost Ethereum technical implementation in the C++ language. 

What makes Ethereum (ETH) unique?

As you already know, Ether is the global digital currency and the primary asset of the Ethereum platform. However, have you ever wondered what makes this particular cryptocurrency so unique? First of all, it is highly different compared to traditional money. Here are a few reasons why it is so unique.

No Intermediaries

Imagine how trouble-free it would be if you could be your own bank? No more delay in transactions and no more high transaction fees. Lastly, there are also fewer chances of your falling Prey to any fraudulent activities. This is what Ethereum offers, with this platform you can manage your own funds with the wallet without any third-party involvement. The wallet acts as your proof of ownership. Ethereum has made peer-to-peer payments simple, easy, and secure.

Cryptography security

Since Ethereum is digital most people are worried about whether it is secure or not. For all the people worrying about security. Ethereum is safe because it is secured by cryptography. It protects your transactions, ETH and Wallet. 

Decentralized & Open

Ethereum is decentralized. Basically, no bank or company in the world can print more Ether coins. They can not change the terms of use also. So this digital currency is secure and independent. Another interesting thing about Ethereum (ETH) is, all you need is a stable internet connection and a wallet that accepts Ethereum. People don’t have to access bank accounts to make and accept payments anymore. 

Available in Fractions

Another unique thing about this cryptocurrency is that people don’t have to buy one whole ETH. Since it is visible upto 18 decimals they can buy fractions of the coin if you want.

Smart contracts

Ethereum has made smart contracts easy. Smart contracts are the computer programs that will automatically execute the contracts when the necessary agreements of the involved parties are fulfilled. With Ethereum the need for trusted intermediaries reduces so the transaction prices whilst increasing the transaction reliability.

How many Ethereum (ETH) coins are there?

As of August 2020, 112 million Ethereum are in Circulation. The data about the maximum supply of ETH coins are not available. In 2014, they secured funding for the project through an online public crowd sale. In the 112 million, around 60 million were given to the contributors from the public crowd sale. Another 72 million was allocated in the first-ever block of Ethereum- genesis block. 12 million was given as the development fund. All the remaining amount of coins were issued as rewards to the miners on the network. The 24 hours high price of Ethereum was $2,840.44 and the 24 hours low time price was $2,540.68. 

How does Ethereum (ETH) work?

The similarity between Ethereum and bitcoin is the blockchain. However, the programming language of Ethereum makes it easy to write and run softwares that manage blockchain transactions and automates the outcomes. The smart contract terms are written within the code, so the smart contracts (computer program) will ensure that the contract is executed as soon as all the agreement terms are met. The Ethereum platform is making an entry into several industries already. And it makes it easy to manage the contracts and reduces the costs and the time and effort to reduce the manual processing of the required documents. 

Wrapping up

Ethereum blockchain was launched on July 30, 2015. Along with the smart contracts it also hosts other cryptocurrencies known as tokens. The average time to mine an Ethereum block is about 13-15 seconds. By the time you finish reading this article at least, 10 blocks would have been mined right? Found this article interesting, wanna know more about the world of blockchain and cryptocurrencies then head to Zeen

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