June 9, 2023

What is Ethereum about?

It is one of the digital currencies that arouses the most interest among miners (users of cryptocurrencies). Ether, or Ethereum, is the #2 cryptocurrency in terms of market capitalization.

Ethereum is an open source blockchain platform that runs on the use of its native currency, called Ether or ETH, so even though people use these names synonymously they are different things.

Ethereum to pay for transactions, Ether is a token that is used only on the blockchain. This token is responsible for powering almost everything that happens on the network, which can be used by anyone to create and run smart contracts, which are software programs that run autonomously and without user intervention.

Ethereum can be attributed in part to its function of smart contracts, here is its growth, because thanks to this innovation it laid the foundations for the decentralized finance industry, decentralized apps and non-fungible tokens such as NFTs.

In 2015 by the programmer Vitalik Buterin, he created the Ethereum platform, with the intention of promoting an instrument for decentralized and collaborative applications.

However, its limited scalability is among its shortcomings, that is, it only allows 15 transactions per second, in December 2017 this situation already put ethereum in check when the CryptoKitties application, a game where users could exchange digital kittens for speculative purposes, it led the platform to a great congestion in which many transactions did not take place.

The Ethereum digital currency currently has 121.74M units created.


How does a cryptocurrency work?

Physically A cryptocurrency is a digital medium of exchange that does not exist and that uses cryptographic encryption to ensure the integrity of its transactions, while maintaining control in the creation of its new units.

The first to be launched on the market was bitcoin, followed by others that have had great relevance such as Litecoin, Ethereum, Iota, Tether, Cash, Ripple, Decentraland, even some that emerged from memes such as Dogecoin.

Digital currencies have multiple factors that make them unique: not being regulated by any institution; not require intermediaries in transactions; and almost always use accounting blocks (blockchain) to prevent new cryptocurrencies from being created illegally or transactions already made from being altered.

However, by not having regulators such as a central bank or similar entities, they are accused of promoting fraud, not being reliable, being volatile, not having a legal framework that supports their users, allowing the operation of illegal activities, among others. .

Cryptocurrencies, however, in turn guarantee security to their miners in terms of the network in which it is located (framework) and that implies code management; Breaking this security is possible but not so easy to achieve, because whoever tries it would have to have a computational power even higher than that of Google itself.


How to get them

Eric Gravengaard, CEO and founder of the Anthena Bitcoin company, performs an operation at the new ATM for bitcoin transactions.

Through specialized portals to buy and exchange them. but the more people are interested and want to buy a particular currency, the higher its price. Its value varies according to supply, demand and user commitment, so it can change faster than traditional money.

However, whoever invests in this type of digital currency must be very clear that this form brings with it a high risk to the capital, since, just as there may be an increase, it may also have an unexpected collapse and end the savings of its users.

Users must have a digital purse or wallet for storage, which is actually a software through which it is possible to save, send and make cryptocurrency transactions. It only keeps the keys in reality, this type of wallets that mark the property and the right of a person over a certain cryptocurrency, so these codes are the ones that must actually be protected. Posted by Cryptobtcbrowser, news and information agency.


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