Ethereum is generally referred to be the second most popular cryptocurrency. Unlike Bitcoin and most other virtual currencies, however, Ethereum can be far more than just a medium of trade or a store of wealth. Ethereum refers to itself as the decentralized blockchain technology.
Ethereum is built on a blockchain network, as are all cryptocurrencies. A blockchain is a public ledger that validates and records all transactions. Everyone on the Ethereum network has an identical copy of this ledger, allowing them to see all prior transactions. Moreover, there is decentralization because the internet isn’t under anyone’s control.
In blockchain transactions, traders use cryptography to validate transactions and to keep the network safe. They use computers to “mine”. Mining means solving complex mathematical equations that certify network transactions. In addition, as an incentive, participants are awarded tokens. In the Ethereum system, Ether (ETH) is the token.
People can use Ether, like other cryptocurrencies, to purchase and sell products and services. Its value has soared in recent years, making it a worthwhile investment. Users may develop apps that “run” on the blockchain in the same way that software “runs” on a computer. This makes Ethereum unique.
According to Ken Fromm, “Ethereum is unique as the network requires people to perform calculations as part of the mining process.” “With this fundamental computational power, a store of wealth and medium of exchange may be transformed into a decentralized global computer engine and publicly verifiable data repository.”
Because ETH is a newer cryptocurrency than Bitcoin, there are fewer ways to buy it. You can choose from the following options:
Local Bitcoin trading forums are available to Bitcoin traders. But, Ethereum local trading platforms are not yet widespread.
Ethereum’s value rises as it gets more popular in the cryptocurrency market and the currency market. The demand for ETH and the security of the blockchain both add to its value. On cex.io, ETH is presently trading at USD 2338.9 per ETH as of the day this article was published.
Also Read A to Z about Money: Cryptocurrency.