Speed dating Ethereum — Some things you need to know before the date
Introduction for blockchain newbies
Ethereum is a blockchain technology, similar to Bitcoin. However, unlike Bitcoin, Ethereum can be used as a platform on which to build distributed applications (maybe soon on Bitcoin too? — let me know in the comments). These applications are called “smart contracts” because they can be programmed in such a way that they execute automatically once certain conditions are met. Ethereum was first launched by Vitalik Buterin in 2015 and has since grown into one of the most widely adopted cryptocurrencies in the world — with over 500 different tokens listed under its name (Ethereum Classic included).
What is Ethereum?
Ethereum is a decentralized platform for applications that run exactly as programmed without any chance of fraud (at least in theory, leave a comment about that and we will discuss), censorship, or third-party interference.
Ethereum is a blockchain-based platform for building smart applications. It provides a decentralized virtual machine — the Ethereum Virtual Machine (EVM) — which can execute scripts using an international network of public nodes. The virtual machine can be used to create arbitrary stateful decentralized applications in which the program code runs on every node on the network.
What is Ether?
Ether (ETH) is the native currency of the Ethereum platform. It is a digital currency, which means it has no physical form and cannot be held in your hand. Ether was created as an incentive for developers who build applications on top of Ethereum.
What Is Gas?
Gas is the unit of measurement for how much work an operation takes to execute. It’s paid for in Ether, and it can be used to mitigate spam attacks on the Ethereum network.
The best way to think about gas is similar to how you might consider how much money you owe someone for something you ordered online: You’re willing to pay upfront because there’s no chance that they’ll leave without providing their service or product, but if their page has a lot of pop-ups and ads that slow down load time — or they take forever trying to process the payment — you may decide not to continue using them. In addition, if your order is small enough that it doesn’t cost much money at all (for example, $5 instead of $50), then someone else might just take over completing the transaction.
What’s the Difference Between Ethereum and Bitcoin
Ethereum is a blockchain-based platform for building smart applications. Ethereum was proposed by Vitalik Buterin in 2013 and launched in 2015, where it was described as a “decentralized general purpose computing platform” that provides users with a way to create their own decentralized applications (Dapps).
Ethereum is not a cryptocurrency (like Bitcoin), but it has its own tokens called ethers. Ethers can be used to pay for transaction fees on the network or even create new cryptocurrencies through initial coin offerings (ICOs).
Every single transaction made on Ethereum is recorded publicly and permanently on their blockchain, which keeps track of all account balances at all times. Each user has an electronic wallet that lets them send or receive payments from other accounts without needing an intermediary like a bank or credit card company — so there’s no centralized server controlling these transactions.
The Jargon You Need to Know Ethereum
In the Ethereum network, you will come across a few terms that can be confusing at first. These are the terms that you need to know in order for you to fully grasp what Ethereum is all about!
Smart contracts: Smart contracts are pieces of code that run on an Ethereum Virtual Machine (EVM). They are used to automatically execute actions between parties without any human interaction. For example, smart contracts can be used to automatically transfer money from one account to another when certain conditions are met (e.g., when a product has been delivered or service provided). You can think of smart contracts as being similar in concept to if/then statements in programming: if this happens then do this action.
Decentralized applications (DApps): DApps refer to applications built on top of an operating system where there is no central authority controlling it — just like how there is no “CEO” of Bitcoin. Instead, these apps operate based on consensus among users and miners who run the system together within its blockchain environment
Conclusion
Ethereum is a software platform that enables users to build and deploy decentralized applications. It’s called the “world computer” because it can run any decentralized application on its network, making it more secure and efficient than traditional methods of doing so.
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Resources ⚡️
Link 1: https://www.techtarget.com/whatis/definition/Ethereum Link 2: https://www.bitpanda.com/academy/en/lessons/what-is-ethereum/ Link 3: https://www.coindesk.com/learn/what-is-ethereum/
