Ethereum is considered by many as rising star of the cryptocurrency world. It has quickly established itself as the second largest cryptocurrency in the world.
Vitalik Buterin, a Russian programmer, created Ethereum at the end of 2013. Vitalik officially announced Ethereum in January 2014 at the North American bitcoin conference in Miami, USA.
Ethereum was created to do things that Bitcoin could not do.
The idea of Ethereum is just not another cryptocurrency.
Rather, it was created as an effort to code, execute, and execute intelligent contracts and DApps (autonomous distributed applications) independently, without the interaction of humans.
How does Ethereum work?
The native Ethereum cryptocurrency is known as Ether (ETH). Since ETH is a cryptocurrency, it is decentralized and uncontrolled by a single governing entity, similar to that of a Bitcoin.
This contrasts with other e-commerce systems, which have centralized control and are regulated by the governing bodies of their countries.
The network relies on “nodes” – volunteers from around the world downloading the entire blockchain of Ethereum and fully impose the system’s consensus rules, essential to its operation.
Uses and applications
Ethereum is a platform for creating and running all kinds of decentralized services, called DApps. One of the main advantages of this system is its wide applicability. In addition to facilitating monetary transactions, it also allows users to create decentralized applications on their blockchain. Here are some uses and applications of Ethereum:
- Security against hackers
Ethereum, having no centralized server, is very difficult to handle for hackers. The use of cryptography has made it secured and the apps are protected against all fraudulent practices and hacking attacks. You cannot access a node and make the desired changes to the blockchain.
ETH transactions utilize ‘Smart Contracts’, allowing you to exchange anything of value. For example, instead of purchasing photos on the World Wide Web, you buy them directly from the photographer and make a contract for that purpose.
- Store data
Server farms are digital stores with hundreds of servers used for storing information. Companies such as Microsoft and Dropbox store large amounts of data in these server farms. The problem is that they concentrate a large part of their storage on a single site. These places can be completely destroyed if they’re attacked by external factors like as natural disasters or hackers. Although redundant systems are created, this entails additional costs.
This is where the decentralized system of Ethereum comes out as a clear winner. In a decentralized storage system, data is not focused on a single farm, but is distributed to hundreds of computers around the world. Its blockchain technology can be used to rapidly encrypt and transfer data anywhere in the world.
Where can you store ETH after purchase?
You cannot store ETH on a BTC wallets – instead, it requires its own wallet or a multi-currency wallet. The AiBB wallet can effectively serve this purpose.
AiBB is a multiprotocol utility wallet that combines the power of decentralized and centralized technology into a simple and secure mobile application. Download the app here.