Ethereum: Beyond a Cryptocurrency - Unleashing the Power of Smart Contracts

Did you know there are 122 million Ethereum + tokens in circulation which is about 10x more than the renowned digital currency, Bitcoin? Ethereum is, in fact, one of the two most recognized cryptocurrencies in the market. It made up more than half of the DeFi market last year. 

While cryptocurrency investing is certainly becoming popular among traders, here's a brief on Ethereum and how it all started:

Discovery of Ethereum

Ethereum dates back to 2013 when Vitalik Buterin explained the concept of cryptocurrency through his white paper. He further brought Ethereum to the Bitcoin Conference in Miami, Florida, to the public, contributing to its recognition. 

To back up his paper and contribute to the information, more co-founders came into the limelight with names like Gavin Wood, Amir Chetrit, Anthony Di Lorio, Jeffrey Wilcke, Joseph Lubin, Mihai Alisie, and Charles Hoskinson. However, Russian-Canadian computer programmer Vitaly Dmitrievich Buterin is considered the initial founder, and he was the initial mind behind Ethereum and the formation of the Ethereum foundation. 

What is Ethereum? What are Smart Contracts and dApps?

Powered by the Ether token, Ethereum is an open-source decentralized and distributed computing platform that helps to make both smart contracts and decentralized applications/dApps. From games to complex decentralized financial instruments, the Ethereum blockchain is ideal for running several applications without the need for any third-party bank/institution.

When it comes to Ethereum applications, smart contracts work as the backbone of the same. It's a simple program with collections of codes/data residing on the Ethereum blockchain network. Provided the conditions are met, smart contracts are ideal for automating the execution of an agreement to come up with an outcome. 

Smart contracts are executed by the Ethereum Virtual Machine that's responsible for determining the state of blocks in Ethereum. It offers an isolated environment to the developers so they can write/execute codes in different programming languages. 

Using smart contracts, users can readily and effortlessly build decentralized applications/dApps. A decentralized application or aApp is a distributed open-source software that independently operates to deliver certain functionalities/services to users. These programs run on a peer-to-peer (P2P) network of computers/blockchain rather than any particular computer. Some generic examples of dApps are Tor, BitTorrent, and Popcorn Time. 

Benefits of Ethereum in Blockchain Technology

Ethereum offers several benefits, including the ones mentioned below:

Decentralization

As a decentralized network, Ethereum ensures trustworthiness and reliability to the people, eliminating the need for any third-party source to run the system. It's censorship-resistant, giving you the complete edge rather than any government/company. With decentralization, there's no scope for preventing payment receivables or service access on Ethereum. 

Immutable Transactions

One of the biggest benefits of Ethereum is the fact that it ensures immutable transactions. Immutable means it's unchangeable. Once you add the data, there's no way it can be edited, despite you being the uploader. Thanks to its immutability, users can prevent any digital nuisances like hacking. 

Fast and Cheap 

Another benefit of Ethereum is associated with its connection to blockchain automation. For its blockchain automation, one can stay assured of faster transactions without the need for complex processes. Also, as there is no third-party involvement, it's much cheaper for the users. 

You can also use ETH to stake and earn maximum rewards. All you need to do is learn the basics and ways for optimizing your liquid ETH staking rewards, and you are good to go! 

Security  

When it comes to the securest and decentralized smart contract platform, Ethereum clearly tops the list. However, the creators are well aware of the necessity for stronger security, and that's why they keep underlining the fact that more improvements can be made for that added solidity against cyberattacks. 

Large Developer Community

Ethereum has an extensive developer community, giving it more edge than others. It has 2.8 times more developers than Solana, the blockchain platform that's placed second in the vast developer community. With such adoption by the developers, there's no doubt that it's soon going to be the first one to find the product-market fit, ensuring its large-scale usage.