What is Ethereum
Here is my latest post of a series of introducing major altcoins to newbie cryptocurrency members on this platform. I prefer to use simple language to explain major altcoins to members who are new in cryptocurrency.
you can click on below links to read my other posts about altcoins
BINANCE leveraged tokens BTCUP & BTCDOWN : https://www.uptrennd.com/post-detail/what-is-btcup-and-btcdown-leveraged-tokens-of-binance~NDgzNDM1
Despite being commonly associated with Bitcoin, Blockchain technology has many applications that go beyond digital currencies. Bitcoin is just one of the applications that use this technology.
Until recently, time and resources were required as well as expertise in coding and cryptography to create and deploy Blockchain applications. Now, applications are developed more easily and distributed faster than ever.
One of the pioneers of this situation and perhaps the most important is Ethereum.
Ethereum made this possible by providing developers with tools to create decentralized applications.
These applications are equivalent to “Decentralized Application”. Its abbreviation is Dapp.
Ethereum briefly; It is an open-source software platform based on blockchain technology that allows developers to create and deploy Dapps.
Like Bitcoin, Ethereum is a distributed blockchain network, but these two projects differ in purpose and capacity. Bitcoin is a peer-to-peer electronic cash system that enables online payments. Ethereum is a platform focused on code execution. The project is a currency like Ether Bitcoin, but it is used by people on the network to execute code as well as pay. So Ether is the fuel of the Ethereum network.
Smart contracts are among the most used applications of Ethereum. These are systems that facilitate the exchange of money, content, property, shares or values. With this technology, it is possible to automate the software process in general in order to fulfill, monitor and enforce contractual promises without the participation of people. Users send Ether to interact with these fully coded, self-running computer programs. These programs are; It works without the possibility of censorship, interruption, fraud or intervention. The developer can create the interactive transaction he wants on the Ethereum network with smart contracts. In fact, this means that developers can develop thousands of different applications.
If we had to give examples of smart contracts from daily life, this would be vending machines that you frequently see in places such as hospitals or shopping malls. When you enter the money in these machines and enter the code of the food or drink you want, your order is prepared and comes to the bottom pane without the help or intervention of any third party. Actually, the working principle is simple.
Yes, instead of creating a completely original blockchain for every new application, Ethereum enables thousands of different applications to be developed on a blockchain platform. In other words, cryptocurrencies are an application that we can exchange money; Ethereum is like an app store next to the app. An information processing platform that enables the development of the desired application.
The number of Dapp developed on the Ethereum platform is nearly 3000 and the number of daily users is around 25.000. The number of applications in the closest rival EOS is nearly 350, and in the third-place Steem with around 100. A clear sign of Ethereum domination.