What is Ethereum?

What Is Ethereum
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Since cryptocurrency became a household topic, Ethereum has been one of the hottest names in this new market. What is Ethereum? How does it work? Which Ethereum wallet is best suited for you? Read on to find out!

Intro to Ethereum

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed with no possibility of downtime, censorship, fraud, or third-party influence. These apps run on a custom-built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.

The Ethereum Virtual Machine makes creating blockchain applications much easier and more efficient than ever before. Instead of having to build an entirely original blockchain for each new application, Ethereum enables the development of potentially thousands of different applications all on one platform.

Ethereum’s smart contracts use blockchain-stored applications for contract negotiation and facilitation. Ethereum provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. The virtual machine’s instruction set, in contrast to others like Bitcoin Script, is thought to be Turing-complete. “Gas”, an internal transaction pricing mechanism, is used to mitigate spam and allocate resources to the network.

Benefits of Blockchain

Blockchain technology has many potential benefits, including cutting costs and increasing your company’s market reach. The hard part is understanding how it works, and making the blockchain work for you. Research the possible applications of your type of business to find the blockchain solution that will be best for your company’s needs

With blockchain, individuals can share in profit by operating an online business. Many corporations and government agencies are now incorporating blockchain into their workflows to ensure that data and documents are encrypted, eliminating the need for a third party, like the banks.

Blockchains have been rapidly gaining popularity as they offer many benefits to businesses. There are thousands of implementations of blockchain already being used, ranging from supply chains to projects in healthcare and beyond.

Ethereum vs Bitcoin

Bitcoin and Ethereum are two currencies utilized to reach the decentralized world of cryptocurrency. Despite both currencies’ in-depth development, many people still have questions about these specific coins. Ethereum was created to overcome the limitations of Bitcoin. First and foremost, Bitcoin can only perform a limited set of operations beyond the simple transfer of value from one address to another. While it is fairly straightforward to create a user account on top of Bitcoins’ blockchain, more complex applications demand more advanced capabilities.

Mining Ether

Ethereum is powered by Ether, which can be mined like Bitcoin. Unlike Bitcoin, however, Ethereum’s issuance model is set to be much more efficient. Other than mining, the Ethereum network also creates decentralized apps (Dapps). Ether can be used as currency or fuel for powering these applications on the decentralized network.


Ethereum has a growing community of developers and users. It is the second most widely held coin after Bitcoin, with high-profile backers like the founder of LinkedIn, Li Dongmei.

Ethereum’s blockchain can be mined using computer power. The reward for mining Ether is set to gradually decrease over time, similar to that of bitcoin. Eventually, Ether will be mined by a small number of very powerful servers, making the cryptocurrency a sort of decentralized tax on the network.

Key features

Aside from being mined like bitcoin, Ethereum also works in an identical way by recording transactions to its public database (or blockchain). However, there are some notable differences between these two cryptocurrencies.

Here are some key features that set Ether apart:

Here Are Some Key Features That Set Ether Apart

Ether is not just a currency, but also an open software platform. Like bitcoin’s blockchain, Ethereum allows developers to build and launch decentralized applications on top of this network. In fact, the Ethereum platform has been designed with this collective goal in mind from the very beginning.

Where to buy and store Ethereum

Like most other cryptocurrencies, Ether can be stored in virtual wallets. And like most other cryptocurrencies, Ethereum can be bought and sold for real-world currency on several exchanges. Platforms like Coinbase and Binance are some of the most popular options. Everyone can sign up for the account. Just make sure that the platform has a good reputation among the cryptocurrency community because it’s trusted and secure.

Best ETH wallets

Ethereum can be stored in many wallets. Some are built for specific use cases while others are less flexible but offer more protection. The most common Ethereum wallet is the official Mist wallet. It allows you to store, send, and trade Ether through its decentralized platform.

Edge Wallet

This mobile wallet holds a variety of coins, not just Ethereum. It’s known for its innovative security features, such as multi-layer encryption and a user-controlled blockchain. The wallet also allows you to set up accounts that can track transactions across multiple blockchains.

Exodus Wallet

Another interesting Ethereum wallet is the Exodus wallet. It is the first desktop wallet to have ShapeShift built into it, allowing for extremely fast Ethereum and other altcoin conversions with no account required!

Ledger Nano S Wallet

The Ledger Nano S is one of the most popular hardware wallets out there thanks to its affordability and high-level security.


Blockchain technology is fascinating because it offers a wide range of benefits for businesses. First, it’s transparent and irreversible in that it opens the door to a new era of traceability where each transaction can be seen and traced back to its source. Second, it allows transparency with smart contracts which are cryptographic executables that simplify many key business processes. Finally, it also allows peer-to-peer transactions and eliminates banks as intermediaries.

It’s pretty easy to see why Ethereum has become so popular. Great wallets, fast transaction speed, and a wide variety of other features make it an incredibly attractive alternative to Bitcoin.

Thanks for reading!

Thank you for reading!