Ethereum is defined as a digital platform that adopts blockchain technology, and its use expands to a wide variety of applications; Ether is known to be its official cryptocurrency, and in turn is the second largest in the entire market.
Vitalik Buterin is the programmer who created Ethereum in 2015, his goal is to create a tool for applications that works in a decentralized and collaborative way.
By January 2016 Ether possessed a value that traded around $1, then two years later by 2018 the cryptocurrency reached its highest level ever at $1391.
Over the years it has been noted that the value of Ether is very volatile, as in October 2020 this cryptocurrency reached its lowest value to remain thus at $390.
On the other hand, it is important to note that although this is one of the many other cryptocurrencies that currently exist, it is also one of the very few that have a very significant market capitalization.
Keep reading this post to learn all about the Ethereum platform, so you will know exactly whether or not you can make use of all the services it brings to you.
How does it work?
To begin with, we can say that Ethereum’s blockchain is practically similar to that of bitcoin, however its programming language gives developers the option to create software through which they can manage transactions and thus automate some results.
This software is called a smart contract, which ensures that these terms are met by writing code for us; these are programs that have the power to run automatically after predefined conditions are met.
Let’s give you a simple example of what this means, any Ethereum user will be able to create a smart contract and then send a set amount of Ether to anyone on a set date.
After that they will have to write the code on the blockchain, after the contract is completed on the agreed date, the ether will proceed to be sent automatically.
How to invest with the help of Ethereum?
The quickest and most common way that anyone can carry out an investment in Ethereum is to buy an exchange, all you need to do is find an exchange that sells Ethereum and also operates in your jurisdiction, proceed to open an account and then go buy tokens.
This process can be carried out via bank transfers, or even credit cards; Ethereum is stored in a wallet, which is provided by the exchange itself.
Either by Ethereum’s native Mist browser or by other types of service providers that are fully professional.
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Advantages offered by the Ethereum platform
Ethereum is one of the most widely used blockchain platforms in the world, but it also offers a number of interesting and incredible advantages to all its users.
- The entire Ethereum platform is decentralised, which means that if any failure occurs it is likely that all applications will always be online, which means that they will not shut down.
- Its open source code offers its users greater security, stability and transparency.
- It does not allow for interference by government entities, this is due to its fully decentralised nature; this ensures that no government can directly influence its value.
- Ethereum’s smart contracts guarantee the security of all users, because their programming cannot be violated, which means that their guidelines are always followed to the letter.
- Ethereum has a consensus-based blockchain network, meaning that the nodes in the system must be in full agreement with every change that is made.
This point eliminates the possibility of fraud and also corruption, thus making Ethereum inviolable in its entirety.
Disadvantages of Ethereum
Although Ethereum has the famous smart contracts and these are designed to make the system fail-safe, there is always room for human error.
The only way for the platform to fall victim to a hacker attack is for the hacker to rewrite the underlying code, however, it is important to note that this would be totally against the very essence of the blockchain.