What is Etherium?
What is Etherium – Ethereum is the best-known cryptocurrency after Bitcoin. It has the second-highest market capitalization of all cryptographic currencies.
Ethereum is not just a currency, however; it also serves as a platform. The currency of the Ethereum system is Ether. Coin exchanges and broker portals list them under the symbol ETH.
The payment of transactions within the Ethereum network is via Ether. In addition to this native currency, it is possible to convert other digital currencies into tokens. They are traded with Ether.
What is Etherium – How Did Ethereum Come About?
The first information about Ethereum was published by its developer, Vitalik Buterin in 2013. The Ethereum network was launched in July 2015.
The further development of the Ethereum platform is under the auspices of the Swiss foundation, “Ethereum Foundation”. Vitalik Buterin heads the development team working on new versions of the Ethereum protocol.
What is Etherium – What Technology is Behind Ethereum?
The question “What is Ethereum?” cannot be answered without looking at the underlying technology. Ethereum is a distributed system.
The network partners exchange data via Ethereum’s own peer-to-peer network. The data exchange runs without a central server.
The Ethereum blockchain serves as a common database for all network participants. The decentralized blockchain architecture thus represents an alternative to a classic client-server setup.
The main goal of this distributed network structure is the protection of data.
What is Etherium – Smart Contracts
Blockchain technology provides Ethereum capabilities beyond the pure currency function. It is the basis for Smart Contracts and dApps.
Smart contracts hide small programs and are used to digitally map contract content. Ethereum’s blockchain coordinates and automates them.
What is Etherium – dApps
Smart contracts are the basis for dApps (distributed apps). These are distributed applications that are composed of smart contracts.
They are based on open-source code, which means that anyone can develop new dApps or existing dApps. A peculiarity lies in the fact that during the transaction execution a correct procedure can be permanently checked.
The distribution of dApps differs greatly from that of conventional app stores. In the app stores of Apple or Google, the corporations provide rules.
There are specifications for the app developers whereby certain features are required for a store-compliant app. dApp developers keep their sovereignty over their data and their application.
They decide independently how to design their dApp and where to offer it. In essence, Ethereum provides a free marketplace with a dApp store.
What is Etherium – What is Ethereum Wallet?
Anyone who wants to use the full range of Ethereum capabilities requires a client. Geth and Parity are the two most widely-used clients among Ethereum participants.
As fully-fledged clients, both programs demand a relatively high computing power. For users who do not use the smart contracts application, lightweight wallets are an alternative to clients.
They allow the reception and transfer of Ethers. MyEtherWallet is an online wallet with an intuitive operation and a wide range of functions. A light wallet reduced to the basic needs is the browser plugin, Metamask.
Another category is the hardware wallets, which usually come in the form of a USB stick. Only the owner of the physical exchanges knows the private key to release a transaction.
This is also true with Jaxx and Exodus multi-wallets, which, in addition to Ethereum, administer additional cryptocurrencies in parallel. Chinese developers launched the first mobile Ethereum wallet, imToken.
What is Etherium – Conclusion
Ethereum is still at the beginning of its development. It provides every participant with the opportunity to offer their own developments as dApps without an intermediary.
As a decentralized system, it creates opportunities for communication and transaction processing between machines in the “Internet of Things”.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.