Everything You Need To Know About Ethereum

Ethereum is not just cryptocurrency, it’s an open source shared platform. A platform that allows for the decentralized transaction for turning-viable implementation. All thanks to Ethereum, Blockchain is now easy to use without having to reinvent the wheel.

 

What is Ethereum?

 

Let me explain you in the simplest way, Ethereum is an open source platform based on Blockchain technology that gives developers a platform to build and deploy the decentralized application.

 

What is mining?

 

Mining is a computational work that required a lot of time and processing power. The individual miner is rewarded for solving complex mathematical problems. This can be done by adding some powerful computer hardware with mining application.

All the crypto-transactions must be embedded in particular data blocks. Each data blocks is linked with several other blocks. This process is known as Blockchain. Miners have to analyze these blocks as fast as possible to make sure all the transactions are done smoothly. These cryptocurrencies do not have the capabilities to process this alone.

A miner is an investor that devotes skills, time, and computer space to sorting through blocks. When the mining process reaches the finish-line, they will submit their solution to the issuer. After verification, the issuer of the currency offers rewards which are portions of the crypto-transactions they helped in verifying. Sometimes they also offer digital coins in exchange for problem-solving.

Ethereum mining is a process of mining Ether. In simple words, mining equals securing the network which in turn ensure verifies computation.

Ether is necessary, it serves as fuel for the smooth running of the Ethereum platform. An interesting way to look at Ether is an incentive used to motivate developers to create top-notch applications.

 

Used of Ethereum

 

Ethereum allows developers to create and deploy decentralized applications. A decentralized application or Dapp serve some particular purpose to its users. Bitcoin, for example, is a Dapp that provides its users with a peer to peer crypto-transaction system that enables online Bitcoin payments. Because decentralized applications are made up of code that runs on a Blockchain platform, they are not controlled by any individual or central entity.

 

Advantage of Ethereum decentralized network

 

Because decentralized applications run on the Blockchain, they benefit from all of its properties.

  • Safe – A third party cannot make any changes to data.
  • Corruption proof – Apps are based on a network formed by the principle of consensus, making censorship impossible.
  • Secure – With no central entity or point of failure and secured using cryptography, applications are well protected against hacking attacks and fraudulent activities.
  • Downtime – Application never go down and can never be switched off.
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    For Ethereum, its still early days, and in future, there will no doubt be more hurdles to overcome. Ethereum is truly a great platform for many more interesting apps yet to be developed, we can only imagine the possibilities that wait.

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