It seems that people are getting tired of bitcoin and they want to find a different technology to use as a currency. So, is Ethereum the answer? Is this hype valid or is this just a ploy to sell books?
First of all let’s take a look at different currencies. All currencies are meant to act as a good “store of value”. The only currency that has ever topped the Dow is the British Pound. Every other currency has lost value.
Now that I’ve introduced you to the concept of global money I would like to introduce you to Ethereum. Ethereum is a new cryptocurrency that is intended to be a better version of bitcoin. This new form of currency is a network and server of smart contracts.
One of the best things about Ethereum is that it uses the concept of the blockchain. The blockchain is the name given to the public ledger that is used by every currency in the world. A public ledger is a record that cannot be altered, hacked or tampered with. The blockchain is one of the most secure records of information in the entire world.
Now that we have the bad news out of the way, let’s talk about the good news. Ethereum will not be able to be manipulated. It is an open source protocol and therefore anyone can get into the protocol and use it to create their own version of Ethereum. Anyone that wants to can create their own version of Ethereum and they can do so for a fraction of the price of a new bitcoin.
Another great thing about Ethereum is that there is no central control mechanism. That means the system is self-regulating. In fact, in some ways that’s its biggest strength.
Now that you know what it is and where it comes from it is time to talk about how it works in Ethereum. Ether is the currency in Ethereum. One ether is equivalent to about one US dollar.
What happens when you make a transaction with Ether? You transfer it to another person’s wallet. And the next time you want to use the Ethereum software or get Ether you have to do it again. There is no way to go back to your own wallet and remove the Ether from there.
What is a smart contract? It is a form of software that is designed specifically to solve problems in certain situations. A smart contract in this context is a contract that solves a problem.
The Ethereum community has developed many different smart contracts that have solved a number of problems. These are some of the most commonly used contracts in the Ethereum community. One example is the EtherDelta transaction.
If you are looking for a more complex smart contract then you should look at the Raiden Network. It is an attempt to build a decentralized exchange for Ethereum that allows people to sell Raiden and buy Ethereum in order to make it easier for people to trade between each other.
If you want to learn more about how Ethereum works I recommend that you spend some time reading up on the concept of decentralized networks. This is a relatively new concept but one that is very exciting. For more information on decentralized networks please visit my website below.