Ethereum Explained: What is it? How Does it Work?

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Programmers familiar with the command line can install Geth, the software that runs Ethereum nodes written in the Go scripting language, and other Ethereum clients such as Parity and OpenEthereum. Download Geth with the instructions below for your appropriate operating system (Windows, Mac OS or Linux), extract it and run it. [Sources: 10] 

The Ethereum blockchain is similar to Bitcoin in that it records transaction history. Each transaction on a node stores the current status of the Smart Contract. The difference between Ethereum and the Internet is that data on your transactions are stored on individual blockchain ledgers and not in a central warehouse such as Google (GOOGL) reports in the cloud or Facebook (FB) reports on a server, so they are unlikely to be compromised in the event of a data breach. [Sources: 0, 3, 12] 

Ethereum is a digital cryptocurrency platform that takes Bitcoin's established blockchain technology and extends its use to a variety of other applications. The word "Ethereum" is used to represent the ether of networks. To understand how to use ether, let's first look at the Ethereum platform. [Sources: 1, 4] 

Ethereum launched in 2015 is an open-source, blockchain-based, decentralized software platform that uses its own cryptocurrency (ether) So contracts and distributed applications (dapps) can be created and executed without downtime, fraud, control or interference from third parties. Key takeaways Ethereum is the open-source computing platform and operating system. [Sources: 11] 

Ethereum is an open blockchain platform that enables anyone to develop and use decentralized applications that run on blockchain technology. Unlike Bitcoin, no one controls or owns Ethereum, and it is a completely open-source project developed by many people around the world. [Sources: 5] 

There is a large community of Ethereum developers who are always looking for new ways to improve the network and develop new applications. It is easy to create new applications, and once Ethereum Homestead is released, it will be safe to use them. [Sources: 5, 13]

Ethereum, a decentralized network, promises that users can leave behind third-party intermediaries such as lawyers who write and interpret contracts, banks as financial transaction intermediaries, and third parties such as web hosting services. Ethereum's transaction fees, also known as gas, reached a record $23 per transaction in February 2021, which is great if you make money as a miner trying to use the network. [Sources: 13] 

To support the Ethereum network, developers need the cryptocurrency ether to build and run applications User can send ether to other users and developers can write smart contracts to receive, hold and send Ethereum. [Sources: 4] 

Ether is a cryptocurrency used to detect and tender transactions on the blockchain platform Ethereum. The cryptocurrency ether is created by validating transactions on the Ethereums platform through a process called mining. [Sources: 4, 8] 

Ethereum is an intelligent contract platform that enables companies to use blockchain technology to create numerous different digital ledgers that can be used to create additional cryptocurrencies that run on the Ethereum blockchain. When people use the term "ether" on the Ethereum platform, it is usually known to merchants for their services. [Sources: 8, 9] 

The Ethereum blockchain enables the creation of unique and indivisible tokens, known as non-fungible tokens (NFTs). The ERC-20 token is the standard that enables fungible tokens on the Ethereum blockchain. Numerous cryptocurrencies were introduced with this standard, which is distributed via initial coin offerings. [Sources: 9]

Ethereum is a decentralized open-source blockchain with intelligent contract functionality. It is the so-called contract code that runs on the Ethereum blockchain and controls valuable things like ETH and other digital assets. A proof-of-work system enables the Ethereum network to agree on the state of the information gathered in the blockchain, thereby preventing certain types of economic attacks. [Sources: 7, 9] 

Ethereum is the largest cryptocurrency by market capitalization, but it is more than just a virtual coin. Ether (ETH) is the second-largest cryptocurrency after Bitcoin in terms of market capitalization. [Sources: 3, 9] 

Ethereum is an open-source blockchain platform that uses blockchain technology to develop and operate decentralized digital applications (DApps) that allow users to make agreements and conduct transactions with each other to buy, sell and trade goods and services without an intermediary. Ethereum was founded in 2013 by Russian-Canadian programmer Vitalik Buterin and several other crypto entrepreneurs. When a blockchain platform changes, the cryptocurrency used to conduct transactions on the platform is renamed ether, and it is often referred to as Ethereum. [Sources: 2, 3]

Like Bitcoin, it relies on blockchain technology, a distributed computer network that records transactions with cryptocurrencies. Ethereum houses so-called smart contracts, which are collections of code that execute a set of instructions that run on the blockchain. These smart contracts supply decentralized applications (dapps), similar to smartphone apps that run on Google's Android and Apple operating systems, but they do not have to address a company or authority. [Sources: 2] 

Simply put, what we have learned so far is that Ethereum is a blockchain that enables users to sign smart contracts and apps, and it has the potential to change the Internet forever. When the two are confused, it is easy to try to remember what Ethereum is, what the system is, and why ether is its currency. [Sources: 6] 

Ethereum describes itself as a decentralized computer network based on blockchain technology. The unique thing about Ethereum is that users can develop applications that run on the blockchain, which runs like software on a computer. These applications can store and transmit personal data and handle complex financial transactions. [Sources: 13]

Article Sources:

[0]: https://coinjournal.net/ethereum/

[1]: https://www.ig.com/en/ethereum-trading/what-is-ethereum-and-how-does-it-work

[2]: https://www.cnbc.com/2021/05/10/ethereum-what-is-it-and-how-is-it-different-to-bitcoin.html

[3]: https://www.thestreet.com/investing/what-is-ethereum-14797423

[4]: https://www.cmegroup.com/education/courses/introduction-to-ether/defining-ether-and-ethereum.html

[5]: http://ethdocs.org/en/latest/introduction/what-is-ethereum.html

[6]: https://www.bitdegree.org/crypto/what-is-ethereum

[7]: https://ethereum.org/en/learn/

[8]: https://www.plus500.com/Instruments/ETHUSD/What-is-Ethereum~1

[9]: https://en.wikipedia.org/wiki/Ethereum

[10]: https://www.coindesk.com/learn/ethereum-101/ethereum-mining-works

[11]: https://www.investopedia.com/terms/e/ethereum.asp

[12]: https://www.cmcmarkets.com/en/learn-cryptocurrencies/what-is-ethereum

[13]: https://www.forbes.com/advisor/investing/what-is-ethereum-ether/