There is no chance you haven’t already heard of Ethereum. But what exactly is Ethereum? Many beginners ask the same question, but few have easy-to-understand answers.
We’ll simplify things and explain Ethereum and how it operates as a decentralised storage platform. Even if you’re a newbie to the crypto industry, we’ve got you covered – we’ll go through the basics with you!
What is Ethereum?
The first thing to know about Ethereum is that it is a type of digital cash known as cryptocurrency. The Ethereum network tracks every transfer, activity, and agreement, ensuring 100% transparency and user safety. Ether is the native currency of the web, and its ticker symbol is ETH.
That said, Ethereum is much more than digital money. Ethereum is known as the king of smart contracts. Smart contracts are computer programs that automatically execute agreements between users without central authorities or intermediaries.
Ethereum goes a step further by flipping how we traditionally keep data online. Read on!
How does standard online storage work?
Passwords, financial information (such as credit card data and transaction records), private details, and so on are collected and stored on the internet via clouds and servers, usually controlled by giant firms such as Google or Apple. This process is known as centralised storage.
While this strategy eliminates the need for individuals to keep their data, data is prone to attacks or invasion without user knowledge. Data can be modified, stolen, or released by outside sources beyond your control, making you or the third-party holding your data vulnerable.
And here is where cryptos like ETH come to the rescue!
What is decentralised storage, and how does Ethereum work?
Cryptocurrencies are here to revolutionise the world we know as they bring decentralisation. Centralised systems are replaced by thousands of computers or “nodes” managed by volunteers worldwide.
Ethereum is an ideal decentralised storage system. Ethereum aims to retain data control in the hands of its consumers through its blockchain. Ethereum’s blockchain can also enable developers to create and distribute decentralised applications, which means that no central authority will be able to keep and manipulate user data.
That’s right! Ethereum’s blockchain is fully decentralised, and any smart contract or transaction is monitored, which means no more data manipulation!
How can I gain from Ethereum?
Ethereum aims to decentralise the internet, which, undoubtedly, is one of its major benefits. It reclaims personal data, including passwords, banking details, and recent transactions, from third parties and returns it to the original users.
But now, let’s focus on where we started: Ethereum is virtual cash, which is something that often interests newcomers. As a cryptocurrency, Ethereum is gaining traction. Many businesses and start-ups have already implemented Ethereum to complete transactions, and the trend is rising.
The good news is that individual traders can also invest in ETH by signing up on trader-broker platforms. Immediate Edge website is a good example with their 24/7 support. You can find more info about this platform on their terms and conditions page.
Risks of trading Ethereum
As crypto prices are volatile, one risks more than they have initially invested. Even if you find a reliable platform and an effective strategy, trading success is never guaranteed. Uncertainty means risk, and there is no way to predict possible consequences.
Besides, cryptocurrency regulations and crypto scams are also aspects traders have to consider. The future of cryptocurrencies is, indeed, inherently unclear.
If virtual currencies become the norm, the crypto sector would be turned upside down, and investing in Ethereum now might be the best decision ever. After all, Ethereum is one of the most traded assets per market cap and trading volume – second only to Bitcoin.
No one can foretell how any future scenario will play out. But that’s what makes cryptocurrency so exciting!