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What is Ethereum

What is Ethereum

Blockchain is technology made available when Bitcoin was created. Ethereum uses blockchain technology to create a decentralized internet. It was proposed in late 2013 and born in 2014 at the hands of Vitalik Buterin. Ethereum is a network where you can send currency and you can create and participate in decentralized applications called Dapps.

Ethereum uses a network of computer to run its application. The coding language Ethereum uses is called Solidity. Ethereum is in many ways the new internet. Ethereum is censorship resistant as no government or company have control over Ethereum.

What is the difference between Ethereum and Ether?

While Ethereum is the network, the currency it uses is called Ether. Ethereum is open source technology and all you need is a wallet to participate. Powering Ethereum protocols costs money, thus Ether was invented as a currency. The price of Ethereum is actually the price of its currency, Ether. To deploy a smart contract to the Ethereum network, the author pays in Ether.

What is the difference between Bitcoin and Ethereum?

Ethereum is built on Bitcoin technology and both are decentralized digital currency. While Bitcoin is only a cryptocurrency, Ethereum is programmable. Ethereum can be used to create smart contracts for financial services, apps, and games. It allows people to connect directly with each other (P2P) to complete a financial transaction without a 3rd party centralized authority. You can read the full Ethereum whitepaper here.

Can I mine Ethereum?

Ethereum 2.0 is going from a proof of work consensus algorithm to a proof of stake model. This means Ethereum 2.0 will no longer be minable, but stakable.

How to stake Ethereum 2.0?

To stake Ethereum 2.0 you will need to run a validator node and stake at least 32 ETH.

You might wonder what is Ethereum 2.0?

Ethereum 2.0 is an upgrade to the blockchain. This upgrade attempts at enhancing speed and scalability.

If you decide to become a validator, you will be given rewards for actions that help the network reach consensus. Since a validator has staked at least 32 ETH there is also some risk involved. A validator can lose ETH by malicious actions, going offline, and failing to validate. You can learn more about the pros, cons, and requirements here.

Has Ethereum got any Rivals to creating the New & Decentralized internet?

One protocol that is viewed as Ethereum’s rival is Polkadot. Polkadot can upgrade without hard forks and can easily be upscaled. Polkadot chains are united in security but independent in their governance. All stakeholders in Polkadot has a voice. You can learn more about the Polkadot network here.

Another Ethereum contender is Cardano. Its cryptocurrency is Ada. Cardano is a peer-reviewed cryptocurrency. Cardano aspires to be incorporated into the mainstream financial systems. Learn more about Cardano here.

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