Come with us as we explore Ethereum in all its fullness.
What is Ethereum?
Ethereum is a form of cryptocurrency. Just like all cryptocurrencies Ethereum is decentralized and has an open-source blockchain. The difference with this open-source blockchain is that it comes with smart contract functionality.
You may have also come across the term Ether. Ether can be considered a native cryptocurrency. Since its creation in 2013 and wide release in 2015 Ethereum has fast taken over the cryptocurrency industry. Ethereum has become the new Bitcoin and can be found at your best online casino.
How does Ethereum work?
Before we take a look at Ethereum and how it operates we need to understand that Ethereum and Ether are not the same. When we are speaking of Ethereum we are referring to a blockchain network. Ethereum acts as a supporting structure to Ether and any other Ethereum-based tokens. When we are referring to Ether we are referring to a primary token on a blockchain.
It’s important to remember that a blockchain is used to record transactions that are made within cryptocurrencies that operate using the peer-to-peer network. The blockchain is also maintained across multiple computers.
To understand Ethereum, we need to think of it the same way we would our search history. Our search history keeps track of all the searches we’ve made and when necessary we can go back and take a look at it when we need something. We can view Ethereum in the same manner.
Ethereum will usually operate on a decentralized computer network. The network can also be referred to as a distributed ledger which in cryptocurrency jargon is called a blockchain. The main role of a blockchain is to record and maintain all transactions made. It acts as a running receipt that will keep a record of all transactions made.
What is a peer-to-peer network?
The peer-to-peer method was created by Bram Cohen who is an American programmer. When we are referring to peer-to-peer we are referring to a network. The main purpose of this network is to distribute the workload or tasks that are part of the network. Everyone who is a part of the network is treated fairly and has equal privileges.
The Ethereum upgrade
Ethereum 2.0 is essentially the upgraded version of Ethereum. This new version of Ethereum uses a proof-of-stake consensus mechanism which assists to verify transactions while using a staking method.
What is proof-of-stake?
Proof-of-stake is a consensus mechanism that is used to process new transactions and also helps to create more blocks within the blockchain. In simple terms, proof-of-stake refers to a general agreement that is made by those that are within the network. This method is used to validate transactions and also helps keep the network safe.
The entire upgrade was meant to help Ethereum become safer and more secure for its users. Although Ethereum is quite common you may struggle to find someone that is using Ethereum 2.0.
Many places, such as online casinos, are still venturing into using Ethereum’s new version. After Bitcoin, Ethereum is the most common form of cryptocurrency.
If you’re looking for a safe and secure cryptocurrency you may want to venture into using Ethereum 2.0.
What to keep in mind before wanting to purchase Ethereum
Before making your first Ethereum purchase you may want to consider a few things. Below we’ve come up with a few things you may want to look out for.
Firstly, decide which Ethereum you are looking for. If you’re looking for something that you can find easily then you may want to head towards Ethereum. However, if you are more concerned about safety you can stick to Ethereum 2.0.
Another amazing thing about Ethereum is that it operates on hundreds of nodes and thousands of users. This is amazing as it has been found that many networks operate on less than 10 nodes.
Many cryptocurrency users have fallen in love with Ethereum and now we know why. There are many advantages to using Ethereum however the upgrade stands out the most.