Ethereum, the second largest cryptocurrency by volume, is known to be a wider take on Bitcoin. This is because it is known to be a software which majorly runs on blockchain, acts in terms of money and can also be looked at as a store holding value. Its motive is to establish a software platform which supports both cryptocurrencies as well as any version of decentralized application which does not require the help of a third party. This allows the crowd to derive the maximum benefit from it and have major control over their respective data. This programming blockchain is also known to include the Ethereum code, and thus, the demand for this cryptocurrency is growing rapidly.
In this article, we have discussed the major factors you should definitely know if you are planning on investing on Ethereum. These features will greatly help you in getting to know this cryptocurrency better. So, what are you waiting for? Keep reading to find out more.
What Is Ethereum?
Invented by programmer, Vitalik Buterin in 2015, this blockchain network includes an included cryptocurrency called Ether, which is known to have several benefits. Firstly, you can buy as well as trade this cryptocurrency as an investment to make the most of it in no time. You can also use it as a software platform developer by creating a variety of new applications. This will allow you to make trading as well as using cryptocurrency a much effortless and easy process.
Ethereum is known to be an open source, dispersed computing platform network, in which one can verify and store their financial acceptances entirely with the help of the software. There is no need to involve a third party in doing so, which makes the task so much more resourceful, convenient and efficient.
How Does Ethereum Work?
All you need to make this blockchain technology work is to simply get hold of proper computing power to power the network. You can also appoint node operators whose main job is to process transactions on this network. They charge a particular fee for running both the hardware and software required to make these transactions a smoother process. These fees, known as ‘gas’ fees are so because they are responsible to keep the Ethereum network running and are paid in the form of ether (the cryptocurrency or fuel which keeps the network stable).
Are Ether And Ethereum The Same?
No, though they are related to each other, they are not the same. While Ethereum is a blockchain technology designed to create new applications and be a store of value, Ether is known to be a cryptocurrency.
Instead, Ether is basically the fuel or power which is required for the smooth functioning of Ethereum.
The Bottom Line
By following whatever has been mentioned above, you are sure to know a great deal about Ethereum. We have provided the various factors you need to know about before investing in Ethereum so that you do not face any hindrances.