The world is getting advanced every minute. Everything is being transformed to its digital self. Like many other things, the currency is also getting digitalized. Crypto currencies are trending today for their convenience and strong encryption. With crypto currency moving here and there from the sender to the user, the currency definitely needs user friendly and smooth platform to facilitate the process of transaction. Such platform is known as Blockchain. A blockchain is nothing but a digital ledger which stores and verifies transactions after interacting with the network nodes.
Ethereum is one such platform where crypto currency related transactions are conducted. It is the second most used blockchain after Bitcoin. Ethereum has its own cryptocurrency under the name ‘Ether’. Ethereum is an open source blockchain and a decentralized system without the necessity of any intermediary. Some of the exchanges dealing in Ethereum consist of Binance, Huobi Global, ZG.com, BitZ and OKEz.
Ether, the currency was created to add extra perks and benefits in the crypto ecosystem but it is being compared with Bitcoin lately. The best part of Ethereum is that it uses smart contract and decentralized application (dapp) platform. The dapp platform facilitates the monetization of the operation of Ethereum. The transactions on Ethereum take seconds to get confirmed but the transactions on Bitcoin take minutes for the same. Ethereum uses a different algorithm (ethash) for encryption and de-encryption. Greater availability of coins and updated technology add more to the fascination towards Ethereum therefore picking up momentum at a faster rate.
Ethereum is also involved in fundraising with safe transactions and clean audits which users can see. Grace is one such fundraising platform which runs at no extra cost. It supervises promotions, collection of donations and raising funds.
Ethereum is a decentralized open source Blockchain. It is involved in the trade of other cryptocurrencies as well as it has its own cryptocurrency. The platform was founded by eight founders of whom Vitarik Buterin (Russian- Canadian) is best acknowledged along with Gavin Wood who is titled as the coder for the Ethereum platform. According to the co-founder Gavin, the Ethereum platform was created in such a way to make it more hefty, censorship-resistant (because of non interference from any centralized authority) and fraudulent defiant. Therefore it is conducted on globally distributed network of public nodes.
The purpose behind the invention of Ethereum was that earlier securing the delicate data like personal credentials and financial information of the users are stored in third party conglomerates like Google and Microsoft which invited the control over the data which in turn invited risks for censorship and governmental radar over citizens’ data.
Ethereum has introduced blockchain smart contract platform which is cost friendly and takes lesser time to complete the actions required to fulfill the agreement between the two parties. Therefore it does not require any third party or intermediary. It also has a speedy effect on transaction reliability.
Currently Ethereum uses Proof of Work protocol which is also used by Bitcoin but ethereum had launched Ethereum 2.0 which follows Proof of Stake protocol. In the late 2020 Ethereum launched Ethereum Beacon Chain (Phase 0) which has made it possible to participate in the staking of the Ethereum network 2.0. The complete upgradation of the Ethereum network will take time.
Cryptocurrency is taking over the old physical currency. The technological elevation is pressing the masses to have alternate solutions to privacy invasion, centralization, identity theft, censorship imposed by authorities, racism and many other issues that arise in the transactional ecosystem from time to time. We wish good luck to cryptocurrency. We hope it becomes the future currency with the least hurdles.