Everything you wanted to know about Ethereum
Today I decided to write an informative article about Ethereum for those who want to know how it works without going deep into the technical data.
What is Ethereum
Explaining with simplest words Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications.
Ethereum keeps a permanent record of digital transactions with no central authority to maintain and secure it.
The development of the Ethereum platform started at 2014 by development team consisted of Vitalik Buterin, Mihai Alisie, Anthony Di Iorio, and Charles Hoskinson.
Ethereum vs Bitcoin
Ethereum and Bitcoin are different according their functions. Bitcoin is only one of several hundred applications that use blockchain technology today.
Bitcoin and other cryptocurrencies, for example, were developed exclusively to operate as peer-to-peer digital currencies that enables online Bitcoin payments. Ethereum blockchain focuses on running the programming code of any decentralized application.
While all blockchains have the ability to process code, most are limited.
Ethereum allows developers to create whatever operations they want. Developers can build thousands of different applications all on one platform. They can have whatever functions one can even imagine.
Why is it so secure
Whole process is secured by complex mathematical algorithms that are obscenely hard to break.
There is one mother machine that controls all processes and responsible for all the transactions being created in the system with information shared and open to everyone.
How it works. Mining
Mining is when a group of nodes (i.e. computers) expend their compute resources to create a block of valid transactions.
a miner can attempt to create and validate a block. Lots of miners from around the world try to create and validate blocks at the same time. Each miner provides a mathematical “proof” when submitting a block to the blockchain, and this proof acts as a guarantee: if the proof exists, the block must be valid.
A miner who validates a new block is rewarded with a certain amount of value for doing this work. What is that value? The Ethereum blockchain uses an intrinsic digital token called “Ether.” Every time a miner proves a block, new Ether tokens are generated and awarded.
Where Ethereum can be used
Any centralized services can be decentralized using Ethereum. For example, loans provided by banks, title registries, voting systems, regulatory compliance and much more. Also, Ethereum gives option to launch own crypto, other developers can issue their own versions of this token and raise funds with an initial coin offering (ICO).
Hope you will find this overview easy to understand and helpful! If you have your question, please write it below, I would be glad to answer your questions or to introduce your project to my team at Astorts Group to be evaluated.