Ethereum (ETH)
What is Ethereum?
Ethereum was first proposed in 2014 by developer Vitalik Buterin. It is a blockchain-based, decentralized software platform used for its cryptocurrency (ether) like Bitcoin. But while Bitcoin is used primarily as a store of value, the idea behind Ethereum is to decentralize other kinds of applications and services, from social media networks to more complex financial agreements. Replacing internet third parties – those that store data and keep track of complex financial instruments. Bitcoin is more like an email, while Ethereum has more in common with the web browser.
It uses a “virtual machine” run on a platform-specific cryptographic token, Еther. Ether is used mainly for two purposes:
- it is traded as a digital currency exchange like other cryptocurrencies
- it is used inside Ethereum to run applications
How does Ethereum work?
Ethereum is a platform that makes it easier to create applications that aren’t managed or controlled by one entity. Instead, they are governed by code. Ethereum is consists of several principles:
- Smart contracts (they make it possible to encode the conditions under which money can move within the money itself, negating the need to trust an intermediary)
- The Ethereum Virtual Machine (EVM) (each Ethereum node also has an Ethereum Virtual Machine that makes the smart contracts; all the nodes run in sync)
- The Ethereum blockchain (it is very similar to Bitcoin’s – it consists of all transaction history)
- Ether (Ether is needed for doing anything on Ethereum, and when it’s used to execute smart contracts on the network it’s often referred to as “gas.”)
- Proof-of-work (this algorithm was first put into action by Bitcoin, is what keeps these far-flung nodes in sync)
Benefits of Ethereum Blockchain?
- Irreversible transactions
- Decentralized
- Fast Transactions
- Secure (all transactions are cryptographically secured)
How to buy Ethereum?
- Create an account
- Verify your identity
- Fund your account and start trading Ethereum on X1
What to do after buying Ethereum?
- Store/Hold Ethereum
You can safely store your ETH in your account or in your crypto wallet.
- Trade Ethereum
You can trade ETH for other cryptocurrencies.
- Send Ethereum
You can send it to anyone and anywhere with their ETH address.
- Use Ethereum tokens as payment for transactions