There is no doubt that blockchain technology is revolutionizing the world as we know it. But of all the blockchain systems out there, Ethereum is quickly becoming the most popular. Why? Let’s take a look at some of why Ethereum is on the rise. Firstly, Ethereum allows smart contracts and decentralized applications to be built on its platform. This means that businesses and developers can create secure and trustworthy applications without having to worry about third-party interference. Secondly, Ethereum has its cryptocurrency called Ether (ETH). This digital currency is used to pay for goods and services on the Ethereum network and has seen an enormous surge in value in recent months. Finally, Ethereum is backed by a strong community of developers.
Who is the founder of Ethereum?
Vitalik Buterin is a Russian-Canadian programmer and writer who initially developed the concept for an open-source blockchain platform in 2013. He was later joined by Dr. Gavin Wood, Joseph Lubin, and other developers to launch Ethereum as we know it today. Ethereum is the name given to this blockchain-based distributed computing platform by Vitalik Buterin in 2015.
Fast-rising cryptocurrency:
Ethereum’s value has increased with time, and it became one of the top three cryptocurrencies for some time, which made people want to invest more in this system and gain.
The price of Ethereum surged from $11 in January 2017 to an all-time high of over $400 in June. In September, the value increased again and stood at around $300 per Ether.
So what is it that has made Ethereum so popular?
One main reason for Ethereum’s popularity is that it has solved an issue that Bitcoin has struggled with for some time now – the scaling problem. This means that many transactions can be processed on Ethereum without slowing down or disrupting other users. Other unique features, such as Smart Contracts and dApps, make Ethereum stand out from other cryptocurrencies.
Smart Contracts:
A smart contract is a digital agreement executed when certain conditions are met. This could be anything from a simple rental agreement to something more complex like an insurance policy. They can be used to manage everything from financial contracts like insurance premiums and loans through payroll management systems for companies with thousands of employees. The beauty of using Ethereum for this is that you don’t need to rely on third-party intermediaries such as lawyers to verify a transaction.
dApps (Decentralised Application) :
dApps are applications that run on a blockchain which allows them to decentralize their server. Solidity is the coding language used in the Ethereum blockchain. It is a contract-oriented language which means that the code can be used to create smart contracts and dApps.The possibilities of building apps using Ethereum Blockchain are unlimited.
Some of the benefits of using Ethereum over other blockchain systems are:
- Privacy – transactions on Ethereum are private.
- Faster transaction speeds than Bitcoin – this makes it easier for users
- Peer-to-peer network
- Access to banking globally
How does Ethereum work?
The cryptocurrency running in the Ethereum platform is known as Ether(ETH). These are the currency responsible for the proper running of the system, and they are called ‘g’s’ for the same reason. Any transaction in the system requires’ ‘g’s’ to complete it. The more complex the task the more ‘g’s’ it needs.
Miners confirm transactions, and once they have been added to a block, the miner gets rewarded with Ether. The transaction fee is also paid in Ether. Miners play an essential role in Ethereum as they help keep the system running smoothly.
Read about: Why Small Business Owners & Entrepreneurs Should Focus on Web 3.0
Conclusion
In conclusion, we can see from these examples why Ethereum has become so popular among developers and investors alike. It offers more flexibility than other systems such as Bitcoin, which only allow users to trade their currency.
Stay in the loop
