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June 8, 2021

Ethereum Blockchain Technology Review

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The Story Behind Ethereum

Understanding How Ethereum Works

Ethereum was built to serve the purpose of creating opportunities for a third party user. It uses its technology to help people process and store transactions quick and secure.

Ethereum at its core aims to be the most easy to use blockchain based on it's flexibility in the back end of the program. This flexibility can offer numerous application for users and are able to cultivate creative ways to use the platform.

Ethereum's Founders

Ethereum was first recognized in July 2015 by a small group of blockchain experts. These experts include Joe Lubin, a blockchain applications developer that uses the Ethereum network. Along with co - founder Vitalik Buterin,  whom is credited with conceptualizing and quantifying the Ethereum purpose. He now serves as the company's CEO. 

The Cryptocurrency network known as Ether was designed to have its uses limited to the Ethereum network. Since inception the scope of Ethereum has changed considerably. Adopted by reputable companies around the globe. Companies like Spotify and PayPal were early adopters. This list has been growing significantly since 2017.

Ethereum's Continued Evolution

The basis for creation was the strong belief in the blockchain and what it could do to benefit the world. 

Security was always and still is, at the forefront of any Cryptocurrency worth its salt. Ethereum is basically invulnerable to hacking and scamming. The reputation built on the security of Ethereum has propelled it to new valuations every year. This is because solving such a big question like security is a large attraction for big corporations who carry sensitive data and large sums of capital.

The Hard Fork Creation

A blockchain may be invulnerable to hacker attempts. However, that does not stop them from doing everything they can to break in. 

The Ethereum community decided to eliminate the theft by creating a "hard fork," invalidating the existing blockchain and creating a second Ethereum blockchain. The original is known as Ethereum Classic and is still available on many popular networks and platforms. Ethereum 2.0 is continually evolving and has some beneficial changes in comparison to its older sibling Ethereum Classic.

Ethereum 2.0 Is A Strong Technology 

At time of writing, Ethereum is the second largest digital currency on the market, behind only Bitcoin.

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The number of ETHs in circulation crossed the 100 million mark back in 2018.

There is no limit on how many ETH can be created. Not like Bitcoin where there was a cap set from launch.

What Is Ethereum in Simple Terms?

Ethereum, like any blockchain, is a database of information that is designed to be impenetrable by hackers. Ether, or ETH, is the cryptocurrency used to complete and record transactions in a blockchain ledger.

The Ethereum blockchain is not simply made for storing transactions.. It enables software developers to market their products through various applications, otherwise known as Dapps These users are able to take advantage of the storage options and worldwide facilitation that is provided in the Ethereum platform.

What Is ETH Trading?

There are many platforms and exchanges to trade Ethereum. Trading Ethereum is a popular choice for investors looking to trade altcoins in one place. Likewise Ethereum has many wallet solutions and is second only to Bitcoin in buying and trading selection.

Have a look through our Top 5 Cryptocurrency Exchanges and platforms where Ethereum is on offer.

The valuations of these coins, especially popular ones, are volatile. many traders in an attempt to capitalize will trade Ethereum and other popular coins for scalping profits.

You can learn to trade cryptocurrency quickly and capitalize on the volatility of the market.

It should be stated that all coins, even Ethereum are still largely considered high risk. Meaning that investors should be fully aware of these risks and develop a trading plan. There are some course4s available for those who wish to trade cryptocurrency long and short term.

Have a look at our top 5 cryptocurrency Education courses to see if there is anything on offer that can help solidify your understanding and performance in the market.

Is Ethereum Better Than Bitcoin?

The ETH was not created to develop value. It was created to be able to use the platform with its in house coin. This made things more simple and cost effective for its users. Ethereum's value has risen on the fundamental solution it provided and wider adoption has pushed the valuation of the company higher than expected.

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Ethereum now has wider ambitions with its applications and is expected to continue pioneering solutions for developers and transactions on a global scale.

Ethereum and Bitcoin operate differently as a product and in the tokenomic universe. Bitcoin is focused on supply and demand to drive up the price and be used as a replacement currency for fiat currencies. 

Ethereum is a product based platform that relies more heavily on its product that the economic atmosphere of the coin.
Bitcoin and Ethereum have become rivals in the trading universe and will often move in the same direction for better or worse. Those who believe in Bitcoin likely already know a good amount in regards to Ethereum.

How Does Ethereum Make Money?

Ethereum charges users a fee when performing actions inside of the application. These fees are nominal in most cases but can become massive when transacting large sums of fiat currency or "gas". Gas is a reference to how much computer power it will take to perform a certain transaction.

The Ethereum "gas" report has stated that the median fee charged is around $10 per transaction.

Key Differences Between Bitcoin And Ethereum

While both the Bitcoin and Ethereum networks are powered by the principle of distributed ledgers and cryptography, they have many technical differences. For example, transactions on the Ethereum network may contain executable code, which will need to mined. while data that is propagated within the Bitcoin network transactions are widely used and discarded. Almost like a notepad.

They have different block times and operate in different chronology when performing requested actions.

The most important difference, the purpose. Bitcoin was created to replace national currencies. Ethereum was created to help process and store transactions. These can be seen in great detail on their respective websites. 

Which one is better? The question that many investors have been searching for about 5 years. The truth is that Ethereum has a less ambitious goal. While Bitcoin still reigns supreme in market sentiment.
For the investor looking into both and deciding to choose one, The ultimate question should be who has the better product? What will bring more value to the world at its very core purpose.

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The question then becomes, do you value replacing fiat currency and helping people take back control over centralized currencies? Or, do you believe in simple secure data that cannot be changed and is recorded on global scale? Etherum certainly has more room to innovate since the creators are still in the drivers seat.

Bitcoin has a ceiling, the question still remains, how high is that ceiling?

Learn where to buy Ethereum here with our list of top 5 Crypto Platform and Exchanges

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Nathan Rosevear

Nathan offers insights and reviews around the highest rated precious metal IRA specialists. He is an investor in gold and silver industry.
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