Ethereum is an open-source blockchain and cryptocurrency platform that hosts applications, digital currency, and payment systems. It uses Ether (ETH) as its native cryptocurrency.
Anyone can use Ethereum’s decentralized finance system, and developers could take advantage of the platform’s blockchain technology for creating and deploying applications securely.
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People can sign up and register an account with Ethereum. All they need is a cryptocurrency wallet, downloaded and signed up separately, to start making transactions.
Ethereum is designed as a decentralized and non-hierarchical network of nodes or computers that form a series or chain of blocks, also called a blockchain. Each block has unique transactions separate from other blocks in the chain and has a storage value maintained separately.
The cryptocurrency that Ethereum generates is called Ether, and it has a currency code of ETH listed on exchanges.
To acquire ETH, users can either work to keep the chain growing as miners, who are rewarded with ETH, or they can buy ETH with standard currency through a cryptocurrency trading platform.
With ETH in their wallets, users can now transact business with any seller who accepts Ether. To secure its blockchain and improve scalability, Ethereum uses Merkle trees, allowing storage savings and client synchronization. It also leverages Merkle proofs to ensure membership proofs.
With blockchain and cryptocurrency as the main thrusts of Ethereum, some other features include:
Ethereum provides a space for building and running decentralized apps, and its Ether can be both a digital currency and store of value. Aside from being the pioneer of decentralized finance, Bitcoin is primarily a digital currency with a fixed supply of coins. However, both Ether and Bitcoin can be earned through mining or buying from cryptocurrency exchanges.
Ethereum’s blockchain and cryptocurrency platform offer some advantages: