About Ethereum

Ethereum Coin Review: Mining Guide, Price & Analysis of Ethereum Cryptocurrency

Ethereum is a programming language that helps developers to create decentralized applications. Developers believe that this is the easiest blockchain to learn. In this review, we shall break down the terminology behind Ether.

Ethereum was launched in 2015. As per the time of this writing, the market cap of the coin is 69.52B. The currency is the second largest coin in the market. Despite the volatile nature of cryptocurrency, ETH has been rising.

We believe that this coin has the capability of changing the world. We live in a world that is hard to trust the application we use. Ethereum comes in place to offer control, convenience, safety, and speed to its users. Moreover, Bitcoin invented blockchain technology, and Ethereum is advancing for the benefit of its users.

The token of Ethereum is known as Ether. Ethereum is the system, while Ether is the coin. If you want to complete a task in their system, you must purchase fuel or gas (ETH). Moreover, the bigger the task, the more the currency you need.

How Does Ethereum Work?

If you haven’t noticed, all the information you share with applications like Google, Twitter, Facebook, Instagram, and even bank has your data. The info of the users is kept on a server and can be easily hacked.

Ethereum was explicitly designed to resolve this problem. It eliminates the need for trusting application with your personal information. Unlike the traditional methods, which use centralization to store data, ETH uses blockchain technology.

It’s a decentralized coin that is not governed by the government. The cash replaces the cloud and servers with a network known as nodes. The network has several nodes. They maintain and store a shared database, which is well known as the blockchain.

The more nodes a system has, the safer the data and its networks become. Ethereum ensures that users’ data can only be controlled by them. The information is kept in the nodes' networks. Therefore, you cannot lose your data.

Consensus verifies that the data kept on the blockchain. Hence, hacking this form of system is impossible. Before data is accepted in the blockchain, half of the nodes must agree that the info is accurate.

Ethereum Technology

Blockchain 2.0 is more advanced but similar to the BTC blockchain. Ethereum has smart contracts that allow a transaction to take place after certain conditions are met. No one can change the deals once they are written.

It is also well known as a trustless transaction, and it will never go offline. The network ensures that users do not need to trust individuals. Therefore, if the conditions are not met, then the transaction will not take place.

dApps is the acronym for decentralized application. Ethereum application runs on blockchain technology and does not operate on a centralized server like traditional systems. Vitalik wanted to enable other developers to create and learn using its dApps.

The coin was created using the Solidity coding language. It is similar to JavaScript and permits other developers to build new and existing decentralized applications. In the future, there is a high possibility that dApps will replace centralized applications. These include social media platforms, online banking, email, and e-commerce.

Can Ether be mined?

Ethereum can be mined. Miners, also known as nodes, verify transactions. The platform rewards its clients with new currency (Ether). Unlike gold and other minerals, the miners do not dig on the ground but instead verify transactions.

Ethereum coin uses Proof of Work (PoW) mining. The nodes have to show that they have completed the task to verify transactions for them to receive the reward. Additionally, the PoW mining process is expensive. It consumes a lot of power and unsuitable for the planet.

The platform has plans to use PoS (Proof of Stake) in its mining process. The method is cheaper compared to PoW and environmentally friendly. However, in PoS, nodes with multiple ETH will be picked randomly to verify the transaction.  They will be rewarded with fees instead of new ETH

How to Use Ether as a mean of Payment

ETH can be used to pay employees of a company after completing a specific task. A cleaning company can pay its staff 10BTC after 5 hours. The entity can use the Ethereum contract to pay its employees if only they work for the 5hours. It means that the company will not pay until the time limit is done. The smart contract brings transparency. The good thing about the Ethereum coin is that the transaction is processed very fast.

Ethereum Application

Multiple developers have created various apps that are secure. For instance, EtherTweet is an application similar to Twitter. However, the former is decentralized and not governed by authority.

Golem is another dApp that lets users rent the space they are not using on their computer. The Ethroll casino runs on the Ethereum blockchain. Therefore, it offers transparency in online dice games to its users.

In the future, we might see more decentralized applications in the market. Nonetheless, some people feel that expert developers might take advantage and scam novice users. This is because some think Ethereum is a complicated platform.

However, we still believe in the future of the Ethereum coin. Multiple transactions take place in the globe each passing minute. Sometimes we end up trusting strangers with our funds. It could go both ways, but Ethereum is here to bring transparency and assurance to its users.

How to Purchase Ethereum

Investors and cryptocurrency enthusiasts can purchase Ethereum, insignificant exchanges. These include; Binance, Coinbase, Poloniex, Binance, Coinmama, Kraken, Simplex, etc. ETH does not leave the Ethereum blockchain. Investors need to own a wallet.

The currencies are not stored in a physical location, and your wallet will not have any ETH. Instead, your Ethereum address will contain the codes that have access to your Ether. These codes are known as the private key, and once you lose them, you won’t have access to Ethereum.

You can purchase a hardware wallet (tangible storage device, i.e., USB stick) like Ledger Nano S. There is a desktop wallet key like the Exodus. Mobile wallets use less storage. A perfect example is the Jaxx wallet.

Additionally, you can use web wallets. These are exchanges wallets like Coinbase. Users can choose the paper wallets. These materials have your access code written on them. You can use a hot storage wallet or a cold storage wallet.

Founder Team

Vitalik Buterin is the founder of Ethereum. Bitcoin has many shortcomings after being introduced in the market. Vitalik was fascinated by the technology behind BTC, and he made suggestions on how to advance the BTC platform. When no action was taken, he decided to develop his coin.

Ethereum has partnered with companies like JP Morgan Chase, Microsoft, and IBM. The platform has also partnered with the renowned research group, reputable startups, and fortune 500 companies.

Advantages

• Built on blockchain technology
• Secure
• Reliable team of developers
• Smart contract dApps
• Developers can create unique cryptos
• Trustworthy platform
• Support the majority of the cryptocurrencies in the market

Disadvantages

• Volatile
• Competition from altcoin like NEO

Final Verdict

Ethereum is a decentralized platform that allows developers to create decentralized applications (dApps) and smart contracts. The smart contract ensures that the agreement between users is secure. The platform’s virtual machine oversees the intelligent contracts and terminates untrustworthy codes. Finally, Ethereum is one of the platforms that is doing well in the market. Ether is a reputable blockchain company.