Ethereum tears down the walls that regular cryptocurrencies can’t bypass – a feature that makes it stand out from the rest.
We can’t be wrong by saying that at the time of writing this article, the cryptocurrency world is dominated by Bitcoin. Among more than 1000 electronic coins existing today, Bitcoin is most recognized and valuable. However, there is also Ethereum, a crypto invention that’s hot on Bitcoin’s trail, and is even forecasted to outperform the current crypto leader in the foreseeable future.
With such a loud prognosis and a forefront place of Ethereum in the crypto world, any savvy player cannot afford to ignore this cryptocurrency anymore. It’s therefore important that you start familiarizing yourself with the money of the future. And as you are about to see, it turns
out that it has plenty of advantages to offer too! That’s why we will help you understand what Ethereum is and how potentially you could benefit from using it.
Definition
This might surprise many, but Ethereum can’t really be called a cryptocurrency. In fact, it’s an open-source software system that operates within blockchain technology and is intended to initiate smart contracts and perform crypto trading – all without the involvement of a “middleman”.
Ether
Building upon this, within the Ethereum platform, there exists Ether (ETC) – a cryptocurrency that in terms of its functioning is quite akin to Bitcoin. Ether transactions are similarly confirmed via blockchain, meaning it’s decentralized, making it very safe and impossible for third parties to interfere with the transactions.
Instead of banks that would normally control the process of verification of transactions, there are thousands of computers (‘miners’) from all over the world responsible for facilitating smooth payments. The miners are responsible for ensuring that the highly complex computation equations are achieved by ‘mining’ the coins and in return, they are paid in terms of Ether.
Ether holders could buy things and services with ETC or save it with the prospect of earning some money out of its ascending price. In retrospect, its value has steadily risen from about $10 at the dawn of 2017 to cumulate at an astonishing $1,000 at the beginning of 2018.
As of 11 September 2018, one Ethereum is trading at $194.87.
Versatile Nature of Ethereum As Opposed to Bitcoin
Although Ethereum and Bitcoin share some features in common, which we touched on above, the two platforms pursue goals that are far less similar. While the usage of Bitcoin is unyieldingly restricted to trading or value storage purposes, Ethereum embraces a broader scope of opportunities. To be more specific, Ethereum makes it possible to initiate smart contracts: apps that function with the utmost programming accuracy, where the possibility of stoppage, fraudulent schemes, and third-party involvement is eliminated.
Breaking Down a Concept of a ‘Smart Contract’
Smart contracts are programs that are run via the Ethereum platform. Using these programs, agreements are enforced not by law, as it happens with regular contracts, but with the help of cryptographic coding. In other words, because such programs function as they are programmed to the T, they ensure the utmost security and reliability of digital agreements.
Whenever such kind of a contract is initiated, each node within the network processes it. Provided someone makes changes to the conditions to the contract, every computer within the network registers these changes. Thus, smart contracts are kept in the globally open ledger and are protected against any kind of fraud.
Examples of ‘Smart Contracts’
At the crux of a smart contract, there is a so-called ‘if-then idea. For instance, think of a situation when a smart contract is created, say, to pay rent in Ether. The “if-then” plays out: “If it is the 5th day of the month, then pay the person X this sum”.
As a matter of fact, for society smart contracts can make a world of difference. They are said to lay the groundwork for what is often referred to as the “smart economy”.
To fill you in on the concept of “smart economy”, it is intended to eliminate lengthy and tedious procedures that are performed manually and are susceptible to human mistakes and fraud. Instead, the smart economy introduces automation coming with transparency and reliability.
Ethereum as “World Computer”
As Ethereum is going from strength to strength, and slowly, the world community is entering a brand new Internet era. Smart contracts in the business world can mean a whole lot, but the ardent proponents see even grander capabilities of the platform. They find it as a means to make the Internet a completely decentralized digital environment.
What does Internet Decentralization mean?
At the time being, all our personal, financial, and business information happens to be in the hands of third parties. For instance, internet giants such as Google or Facebook keep this data on their servers. On the brighter side, this is very convenient as these companies employ people who ensure the storage and security of this information. On the downside, however, these services inherently entail several hazards: governments or scammers can get their hands on your data with you being none the wiser. They can alter it or use it for unlawful purposes – a rather unfavorable scenario for you.
And the good news is that Ethereum, equipped with blockchain technology, is potentially capable of tackling the issue of dependence on third parties. It thus can become a ‘world computer’ that will deploy the whole bunch of nodes around the world so as the control over the notes and files is returned solely to their owner. Only the owner will be able to change or influence their data in any way. This ensures better security features and more privacy of personal information.
Final words
As a young and multi-faceted platform, Ethereum is credited with potentially immense powers where the sky is limitless above it. As its founder, Vitalik Buterin maintained: “Ethereum aims to take the promise of decentralization, openness, and security that is at the core of blockchain technology and brings it to almost anything that can be
computed.”
However, it will take time to see whether it will deliver on its groundbreaking promises or not. In all honesty, we are quite optimistic and eager to see a smart economy as our new and sunny reality.
Meantime, at WildTornado Casino, the sun is constantly shining on our Hot games, and New games are beaming with a promise of superior entertainment. Fantastically enough, you may fuel them with Ether (as well as Bitcoin or other cryptocurrencies).
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