What is Ethereum?
Ethereum is a global, open-source platform for decentralized applications. In other words, the vision is to create a world computer where anyone can build applications in a decentralized manner; while all states and data are distributed and publicly accessible. Ethereum supports smart contracts in which developers can write code in order to program digital value. Examples of decentralized apps (dapps) that are built on Ethereum include tokens, non-fungible tokens, decentralized finance apps, lending protocols, decentralized exchanges, and much more.
How does Ethereum work?
Ethereum-based apps are built using its key innovation: “smart contracts.” Smart contracts, like regular paper contracts, establish the terms of an arrangement between parties. But unlike an old-fashioned contract, smart contracts automatically execute when the terms are met without the need for either participating party to know who is on the other side of the deal — and without the need for any kind of intermediary.
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Who created Ethereum?
Cryptocurrency Ethereum was founded by Vitalik Buterin, Mihai Alisie, Anthony Di Lorio, Charles Hoskinson, Amir Chetrit, Joseph Lubin, Gavin Wood, and Jeffrey Wilke.
What makes Ethereum unique?
Ethereum has pioneered the concept of a blockchain smart contract platform. Smart contracts are computer programs that automatically execute the actions necessary to fulfill an agreement between several parties on the internet. They were designed to reduce the need for trusted intermediates between contractors, thus reducing transaction costs while also increasing transaction reliability.
Ethereum’s principal innovation was designing a platform that allowed it to execute smart contracts using the blockchain, which further reinforces the already existing benefits of smart contract technology. Ethereum’s blockchain was designed, according to co-founder Gavin Wood, as a sort of “one computer for the entire planet,” theoretically able to make any program more robust, censorship-resistant, and less prone to fraud by running it on a globally distributed network of public nodes.
How to mine Ethereum?
Miners are essentially the cornerstone of many cryptocurrency networks as they spend their time and computing power to solve those math problems, providing a so-called “proof-of-work” for the network, which verifies Ether (ETH) transactions. Ethereum, like Bitcoin (BTC), uses a proof-of-work (PoW) consensus process at the moment and will soon switch to a proof-of-stake (PoS) mechanism.
Besides that, miners are responsible for creating new Ether tokens through this process, as they receive rewards in Ether for successfully completing a PoW task.
PoW relies on fundamental properties of the hash function, an “encrypted” piece of data that is procedurally derived from some arbitrary input. The difference between hashes and standard encryption is that the process only goes one way.
Where can I buy or trade Ethereum?
Users can trade Ethereum at klever.io using Klever Exchange and you can store your Ethereum using Klever Wallet.
