What is Ethereum?
What it is
There are two very important things to know about Ethereum.
- It is digital money.
- It is a platform for apps.
If you search “Ethereum” while surfing the web, then you will see lots of jargon about blockchains, smart contracts, decentralization, and other fancy sounding words.
Luckily, that technical stuff exists in order to achieve Ethereum’s you-oriented goals:
- To be a secure form of digital money.
- To provide a great app platform.
Without these two factors, all the flashy terminology is completely impractical. The reality of Ethereum boils down to you and your needs.
How it Works
So, digital money sounds interesting, but what makes Ethereum special? After all, using a credit card might as well be considered digital money since it doesn’t involve cash.
Ethereum is unique because it is decentralized. This means that you don’t need a middle-person or a top-person to manage your money.
When you pay with a credit card after shopping, your money is being managed by the credit card company during the transaction. You are trusting the company and their employees to keep your information secure.
Traditional money is powered by institutions like banks or companies which are mainly run by people. But Ethereum is powered by computers which are mainly run by math.
Ethereum uses a network of transactions called a blockchain to send money around, but it’s really a transaction-chain. This means that when you send, receive, or use Ethereum, your transactions are managed by automatic processes.
They don’t require a human employee or a business to deal with your info. These processes come from a science called Cryptography, the study of making information secure by using advanced math.
This removes most human inconsistencies from the process of dealing with your money and information.
Ethereum also lets people create apps, called dApps or decentralized applications.
Just like Apple gives people tools to create apps for iOS, Ethereum gives people tools to create dApps. Currently there are hundreds of dApps running on the Ethereum network, including games, art marketplaces, and even music streaming services.
Because dApps are decentralized, your activity on each dApp is managed by the automatic processes that securely transfer transactions. Your information is far less vulnerable in dApps than in normal apps.
How You Can Benefit
Using Ethereum is extremely secure.
The Ethereum network launched in 2015 and has never been hacked. Compare this to 2020 alone, where credit card companies experienced over 1000 breaches that affected more than 300 million people.
Ethereum’s security comes from decentralization and is the reason why many people call it trustless. When automatic computer processes manage your transactions, you don’t need to trust other people nearly as much with your money or info. You won’t have to worry about fraud, corporate mismanagement, or incompetence endangering your online safety.Additionally, Ethereum has a history of being a robust investment. One Ethereum was worth slightly over $100 at the beginning of 2020 and is now worth over $2000 as of January 2022, a staggering 2000% return on investment.
Finally, Ethereum simply lets you be you. Do you want to sell art, play games, send money to friends, invest, or simply store money securely? Ethereum does it all.
Ethereum is a powerful technology that combines financial, creative, and social tools in a way that respects your needs, your privacy, and your ambition. It’s the kind of money that’s always in your hands and the kind of service that always serves you.
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