Significant things to know about Ethereum
March 30, 2018
There are over 1300 cryptocurrencies in the digital currencies and there are more getting introduced to the market every day. But even though cryptocurrencies such as Bitcoin, Dash, and Zcash are in evergreen demand and the market value is stable. A cryptocurrency that is gaining prominence like the above-given names is Ethereum.
Ethereum is on the rise in regards to the market value and the user audience. It is even mentioned in the categories that Bitcoin belongs to. The growing market value and demand has made Ethereum a favorite choice for the investors along with the Bitcoin, Dash, and Ripple.
What is Ethereum?
Many people who are interested in investing in cryptocurrencies may know about Ethereum. But for the people who don’t know about it, Ethereum is an open-source, block-chain based computation platform that also allows miners to mine for Ether tokens that fuel the network. These Ether tokens are used as tradable cryptocurrency and currency for the developers to pay for transactions and services on Ethereum network. Ethereum allows the user to build and execute Blockchain apps along with the cryptocurrency perks.
Things to know about Ethereum
- Storage: The Ethereum is decentralized and runs on a Blockchain technology that makes it completely secure from the hackers who are trying to access the transaction and account data.
- Security: All the data is secured using cryptographic algorithms that are applied using the Blockchain technology that prevents the access to any nodes on the Blockchain.
- Secure transactions: Ethereum uses a special “Smart contracts” feature that eliminates the involvement of any third party and also makes the transaction possible in a risk-free method.
Wallet types in Ethereum?
The ether tokens cannot be stored on some other cryptocurrency wallets such as Bitcoin. The miners need a special wallet of their own to store ether tokens.
- Hardware wallets: These wallets are hardware devices where the currency remains secure at all the times. But the wallet owner has to be careful that they use quality hardware for storing the currency because low quality hardware can easily be corrupted and the data can be lost.
- My Ether wallet: My Ether wallet is a personalized cryptocurrency wallet for the entire ether user base. It is an online interface that allows the user to create, access, and operate Ether wallets. This can also be operated offline where the data can remain more secure. .
Ethereum Market Capital
The cryptocurrencies have seen an exponential growth since 2017 in the cryptocurrency market. Ethereum went from $10 to 833$ in the regards to the market capital. Thus the total market capital of cryptocurrencies was evaluated around $70 billion USD
Working of Ethereum
The network of Ethereum is completely depended on nodes. Individuals when download Ethereum, they also download the complete Blockchain and employ the consensus rules that is significant for the functioning of the Ethereum network. These consensus rules are governed by Smart contracts – a special function in the Ethereum that performs the transactions automatically. During these transactions, the ether tokens of the user performing the transaction are deducted. This smart contract is used in the transaction for robust security and cheap transaction cost than other contract law.
Ethereum can be bought, sold, and traded
Ethereum is just like any other cryptocurrency that can be used to conduct business. There are many investors who don’t know about mining Ethereum and they want to buy and trade Ethereum. There are several online cryptocurrency exchange platforms that can be used to acquire Ethereum instead of other cryptocurrencies. In simple words, you can exchange other cryptocurrencies for Ethereum and can store in your wallet for investment or business purposes.
Best investmenta in 2018 - Ethereum
This is a recognized fact that Ethereum is ranked second as the best cryptocurrency in the market following Bitcoin. The market capital of Ethereum is estimated at $70 billion USD which has made many users think that investing in Ethereum is now non-profitable. Many leading financial experts have reasons to believe that the Ethereum will grow more in the coming years. As long as the ICOs and Blockchain are becoming more prominent, investors can have reasonable profits made from Ethereum.