If you have been around for a while in the cryptocurrency world, then you must have heard about Ethereum. But if you are new to the space, one of the important assets in the crypto space you should learn about is Ethereum. Ethereum is presently the second-largest cryptocurrency after Bitcoin. The network has lots of amazing features and applications that make many people rake it over Bitcoin.
Ethereum has more use cases than any other cryptocurrency and makes a good asset for both developers and investors. This post will talk more about the Ethereum blockchain and some of its real-world use cases.
What Is Ethereum Blockchain?
Let's start by defining what Ethereum is. Ethereum is a blockchain-based computing platform that makes it possible for developers to build and manage decentralized applications on it. The Ethereum blockchain is a decentralized platform, which means it is not run or managed by a centralized authority like the government or central bank.
When you create a decentralized application on the Ethereum network, the application participants decide on what happens to the application. They make authority over the app and not any other third party or organization.
What Are The Key Features Of Ethereum Blockchain?
Some of the major features of the platform include:
- Ether: Ether is the working power on the Ethereum network. It is more like the currency spent on the platform to get anything done.
- Smart contracts: These are self-executing forms of contract that exist between two parties. It facilitates, verifies, and enforces transactions on the blockchain. Smart contracts are one of the key features of the Ethereum blockchain.
- Ethereum Virtual Machin: the EVM is the underlying technology behind Ethereum smart contracts. It serves as a technology that allows users on the Ethereum network to understand and interact with smart contracts.
- Decentralized applications: these are called dApps. These are consolidated applications users can create on the Ethereum blockchain.
- Decentralized autonomous organizations: these are often created for democratic decision-making. It is one of the possibilities users can enjoy on the Ethereum blockchain.
These are some of the key features that make Ethereum what it is today. They are what come together to drive its popularity and use cases. Now, let's consider some of the benefits of the Ethereum blockchain.
Benefits of Ethereum Blockchain
The Ethereum blockchain is a decentralized, public, open-source, blockchain-based distributed computing platform that has opened the cryptocurrency community to a world of possibilities. Some of the benefits of the platform are:
- Decentralized - there is no central server or authority; all nodes on the network are equal peers when it comes to validation and processing of transactions
- Trustless - there are no intermediaries required in order for two parties to conduct business on the network. This also means that there's no need for trust between parties as every node verifies all transactions independently.
- Secure - thanks to the use of cryptographic methods, sharing vital information and data across the Ethereum blockchain is more secure.
Ethereum Blockchain: Background and Use Cases
Although Bitcoin's vision to start the cryptocurrency vision was a groundbreaking achievement, Ethereum has done much more to build and expand on this vision. It is now more than just a payment system; Ethereum is building a global computer network that connects people to a whole world of decentralized applications (dApps). This has greatly increased efficiency, security, and control for users on the blockchain.
Because of the wide range of features present on the Ethereum blockchain, the crypto has several real-world use cases that are simply amazing. From finance to gaming, web browsing, supply chain management, and identity management, Ethereum sure has a lot up its sleeves. Let's look at some of its major use cases.
#1: Decentralized Autonomous Organizations (DAOs)
These are organizations built on blockchain that operate on the Ethereum blockchain without central authorities. DAO is one of the first features that came up on the Ethereum blockchain. Since no single authority rules these organizations, they are instead governed by rules coded in software and administrative decisions that are made by all stakeholders vote.
#2: Enterprise Ethereum
These are customized networks and software based on Ethereum, which are created for private businesses and corporations. These networks are permissioned. What does that mean? It means enterprise clients hold complete control over the architecture, validators, and users of the network.
Today, several organizations belong to the Enterprise Ethereum Alliance (EEA), including Samsung Group, MasterCard, J.P. Morgan, and Microsoft.
#3: Non-fungible Tokens (NFTs)
NFTs are now popular today - they are virtually everywhere you turn. NFTs are unique and invisible digital asses that are useful in art, gaming, and ensuring the provenance of luxury goods. Since its launch in 2017, the applications of NTFs have attracted a huge mainstream audience to cryptocurrency and blockchain. Ubisoft, NBA, and LVMH are all presently experimenting with NFTs.
#4: Decentralized finance (DeFi)
This is somewhat the newest baby in the Ethereum network. Though it is one of the newest innovations on the blockchain, it has witnessed massive growth on the Ethereum network. DeFi platforms are bringing great innovations to traditional financial products and services. They are adding decentralized, programmable, and censorship-resistant features to create completely new financial products.
Think of platforms that give interest on crypto holdings, allow peer-to-peer borrowing and lending, decentralized exchange, etc. Some popular DeFi includes MakerDAO, Compound, and Aave.
How to Buy Ethereum
If you are thinking of getting on the Ethereum bandwagon and investing in Ethereum, you will want to know how to buy Ethereum. There are different ways you can do that. Let's see some of them.
· Through online exchange platforms
This is probably the most common method of buying cryptocurrencies, including Ethereum. There are specific platforms online called crypto exchanges that allow you to buy and sell Ether for a fee. Some of them include Coinbase, Coinmama, eToro, Anycoin Direct, etc.
· Trading platform
These are dedicated platforms that connect buyers to sellers via an intermediary. On these platforms, you can also trade one crypto for the other.
· Peer-to-peer
This is contacting someone that has some Ether to sell, and you directly negotiate and buy from them. Here, no middle man is involved, and there are no fees paid. However, it comes with a lot of risks. Some sites like LocalCryptos do well in helping to connect users who want to trade Ether using the peer-to-peer method.
* This is a contributed article and this content does not necessarily represent the views of sciencetimes.com
