The ABC of Ethereum
Ethereum joined the economic world on August 2014. It’s a platform that is responsible for building applications that execute agreements or smart contracts. These cannot be interrupted, censored or manipulated by intermediaries, since the platform operates with blockchain technology, designed to decentralize all manual management.
What is Ethereum?
Ethereum is a system that generates contracts with autonomous technology, this only requires values and specifications conditioned by the intermediaries to start operating. However, operating at Ethereum Foundation has a cost.
The Ethereum Foundation platform was designed by Vitalik Buterin, with the aim of increasing security, equity and sustainability in the creation of markets, contracts or digital agreements. It operates with a blockchain system, a concept designed by Satoshi Nakamoto in 2009, the blockchain decentralizes manual management regarding the transaction, contract or movement of money, therefore the control of the process goes to a record in a book of accounts and information, thus creating a secure virtual database. The processes executed under the applications designed by Ethereum can only be deciphered by a computer that has the same technology that governs the system, that is, compatible with blockchain technology.
Ether’s the cryptocurrency designed basically to cancel / pay for any service or process obtained in Ethereum Foundation, that is, it can only be used within that platform, however it is one of the most powerful and strong cryptocurrencies in the virtual world. The ethers are considered an improved proposal of the BTC (Bitcoin), because they have certain characteristics that make the ethers the most reliable cryptocurrency. Among these characteristics are the following:
- The ethers are infinite: that is, there is no maximum amount established to create them, which places the Ether above the capacity of Bitcoin.
- The ethers are inflationary: this means that the value of the cryptocurrency is designed only to increase; this is another advantage in relation to the other cryptocurrencies.
- Faster transactions: operations made with cryptocurrencies such as Bitcoin take approximately 10 minutes, those that run with ethers take 18 seconds maximum.
How to get ethers?
Ether is the second cryptocurrency with more value and utility worldwide. Just like Bitcoin, it’s possible to obtain ethers through mining, this activity consists in the execution of a series of complex calculations, which when solved provide the individual as a reward for an established amount of monetary units.
Similarity with other cryptocurrencies
Ether, like most cryptocurrencies, operates under a decentralized system, this means that no one can control it, it is designed so that this technology is not governed by any institution or entity; public or private. This way, it is ensured that the cryptocurrency is developed only with the supply and demand of the operations carried out and cannot be modified or intervened by any institution.
Bitcoin vs Ethereum
Bitcoin was the first blockchain platform that allows transactions with virtual currencies, Ethereum is also a platform that works with the blockchain technology, however, it allows the transaction of anything that is programmable, that is, it is designed with the ability to handle principles that include more than virtual money. Although it is possible to make intelligent contracts with Bitcoins, software that executes the process is necessary; Bitcoin investors usually turn to RSK, one of the most known Bitcoin users, and execute intelligent contracts.
Where are ethers kept?
The purses or Wallet are designed to keep the cryptocurrencies, so that when making operations with them the procedure is more productive, its functional structure is similar to physical banks, or other virtual wallets such as PayPal.
By creating an account and registering the data it’s possible to send, receive and protect the ethers. There’s an alternative to save the ethers in a computer backup, however, it is not recommended for security reasons. Instead it is recommended to use the services of purses such as Bittrex or Poloniex, in order to have a guarantee about the security of cryptocurrencies.