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Explained: What is Ethereum And How does Ethereum Work for Beginners? [Step-by-Step-Guide!]

A Brief History of Ethereum:-


Ethereum platform was launched in 2015 by Buterin and Joe Lubin, founder of the blockchain software company ConsenSys.  The founders of Ethereum were among the first to consider the full potential of blockchain technology, beyond just enabling the secure trading of virtual currency.

Explained: What is Ethereum And How does Ethereum Work for Beginners? [Step-by-Step-Guide!]
 


    What Is Ethereum?

    Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether (ETH or) is the native cryptocurrency of the platform. Additionally, many other cryptocurrencies operate as ERC-20 tokens on top of the Ethereum blockchain and have utilized the platform for initial coin offerings.


    There are many types of cryptocurrency, such as Bitcoin, Ethereum, Solana, Dogecoin, etc. Today we are going to talk about Ethereum coin through this article. 

    What is  Ethereum coin?

    Ethereum currency was started long ago, it is also a type of digital currency. Currency is considered an electronic currency.

    This currency is a computing platform of the blockchain itself. In 2016 this currency was split into two different blockchains (Ethereum and Ethereum Classic). The Ethereum software is a set to generate contracts for the OK platform.


    Ethereum coin is very easy to get as compared to bitcoin. It is a type of currency created by cryptocurrency, which is used as a reward for calculations and notes.


    The discoverer of the Ethereum coin has made it in such a way that it is considered to be much better and better than bitcoin. Just like we can buy any item with bitcoin

    Who are Ethereum's co-founders and where are they now?

    Ethereum was created by Vitalik Buterin, the creator of bitcoin. He was born in Russia and became a native of Canada after birth, he gave the idea of making this coin in the year 2013.

    It took them about 2 years to prepare this currency completely, that is, in 2014 -15, they had completely prepared bitcoin. When he made this program, then he was only 19 years old.

    He was the first to present bitcoin and ethereum coins to the world. In today's time, this coin comes second in cryptocurrency. When this program came into the market, its price increased a lot.


    How do I cash out Ethereum?

    • Pick a crypto exchange.
    • Connect an existing bank account.
    • Transfer your Ethereum to the crypto exchange.
    • Transfer your mining rewards to the crypto exchange.
    • Sell your Ethereum against a preferred currency.
    • Withdraw your money to your bank account.
    • Pay the withdrawing fees.

    The entire team that created the Ethereum coin

    In 2011, using bitcoin, Vitalik attempted to create an ethereum coin using cryptocurrency and blockchain technology. In 2012, he read Bitcoin Magazine to understand Bitcoin.


    After this, he put all his hard work into the creation of this coin in 2013. In 2013, he started giving his full time in a university of Waterloo in search of Indian coins and after that, in 2014 he presented this currency to the world.


    To do this work, there are three other founders along with them, whose names are written below:-

    Gavin wood:- Vitalik met Gavin wood in the year 2014 through a mutual friend. Gavin Wood had created the smart contract language Solidity. 

    Gavin Wood also wrote the first yellow paper for the Ethereum blockchain, which was for the ethereum virtual machine. His contribution helped Vitalik a lot.


    Ming chan:- Ming chan had contributed a lot to this. He had worked as the exclusive director of this currency. He also supervised the materials used to make the Ethereum blockchain.


    Jeffrey Wilke:- Jeffrey Wilke took care of its programming. He did the work of go programming implementation.


    What is the use of Ethereum coin?

    This is a very good digital cryptocurrency because through this we make double or triple our money. Sometimes there is damage in it. When the price of this currency goes down.


    Using this currency, we can send our money to any other country very easily. Using this, we can do money transactions only between two people. That is why there is no question of any kind of fraud in this.

    How is Ethereum used in real life?

    Through its ground-breaking combination of features like smart contracts, Ethereum is used for a variety of innovative applications in finance, web browsing, gaming, advertising, identity management, and supply chain management.

    What is the market price of Ethereum currency?

    If we talk about the price of this currency, then in a very short time the value of this currency has increased a lot.

    Seeing this price rising, most people invest their money in it. We would like to tell for your information that the price of this cryptocurrency is not fixed in real terms, its price keeps on increasing and decreasing from time to time.


    This is the reason, that increasing the price of cryptocurrency gives us a lot of profit when the price of cryptocurrency decreases. Due to which a lot of damage is done.


    However, the price of cryptocurrency is $480 per Ethereum coin (approximately Rs 27,115.2 per Ethereum coin according to Indian Rupee). This price keeps on increasing from time to time.


    In which countries have the Ethereum coin arrived?

    As we all know, the Ethereum coin was invented by Vitalik and his associates. It was developed by a company called Kaun.

    This company is located in Switzerland. This coin has been approved in many countries, but there are many countries where there is no recognition of any cryptocurrency related to it.

    How many users join this coin at the moment?

    It is a very popular digital currency, it attracts a lot of people because its value is increasing day by day.

    For this reason, its uses are increasing day by day in a very large amount. It has more than 12 million members, and its users are increasing day by day.


    Difference between the Ethereum coin and Bitcoin?

    Bitcoin is called the digital dollar of cryptocurrency because bitcoin is used only digitally. It is also used digitally. But in this, your money is invested or goes.

    Bitcoin is a type of currency through which we buy goods. This currency is a type of laser technology, which is used for the goods needed to create new programs.

    Bitcoin is strong and its version is 1.0. Ethereum coin is stronger and its version is 2.0.


    Some important information about Ethereum coin:-

    Name:- Ethereum

    Symbol:- ETH

    Creators:- Vitalik Buterin, Gavin Wood

    Start date:- 30/07/2015


    Advantages and Disadvantages of  Ethereum


    Advantages of Ethereum:- 

    • it allows individuals and companies to do much more than just transfer money between entities leading Bloomberg to write
    • Ethereum enables the deployment of smart contracts and decentralized applications (dApps) to be built and run without any downtime, fraud, control, or interference from a third party.
    • There are many benefits of the Ethereum coin, some of which are mentioned below as follows.
    • By using this, big technology companies do it to increase their business
    • By investing money in this coin, they are made up to 2 times.
    • Volatility: While volatility was once viewed as a negative, astute investors have recognized market cycle patterns and can profit from the parabolic profits generated by market bubbles.
    • Liquidity: Due to the worldwide creation of trading platforms, exchanges, and online brokerages, Ethereum is undoubtedly one of the most liquid financial assets. With very cheap costs, you may quickly exchange Ethereum for cash or valuables such as gold.
    • The lower danger of inflation: Ethereum features a clear inflation strategy that is less susceptible to tampering. There’s no need to be concerned about your cryptocurrency deflating because the blockchain system is limitless.

    Disadvantages of Ethereum:-  

    • Low Scalability- Ethereum uses a Proof of Work (PoW) model, 
    • Unstable: The Ethereum blockchain is still undergoing lot of changes; this also includes moving the consensus method from the PoW to the PoS system.
    • Dependability: The ERC20 tokens or any other tokens are based and built on top of Ethereum.
    • Scaling Issues: Unlike Bitcoin, which serves a single purpose, Ethereum serves as a ledger, a platform for smart contracts, and so on, which can lead to flaws, breakdowns, and hacks.
    • Ethereum Investing Can Be Dangerous: Investing in Ethereum, like any other cryptocurrency, may be hazardous. 


    Conclusion

     Ethereum is a technology that completely revolutionizes the way transactions are carried out. it is possible to replace all existing standard contracts to improve transaction security, limit costs and decentralize the world. Ethereum enables the deployment of smart contracts and decentralized applications (dApps) to be built and run without any downtime, fraud, control, or interference from a third party. Ethereum works by using computing power to power the network. It is created in the process of “mining” which is the computing process that makes it work. But Ethereum is trying harder, and its smart contracts are powering a whole new industry of its own. If you want to invest in Ethereum directly, you can buy it through a crypto exchange, a stockbroker, or even a payment app that carries it. Since Ethereum is one of the largest cryptocurrencies by market cap, it's available on almost all platforms that sell crypto.

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