Cryptocurrency is a current hot topic with many institutes accepting it as a mode of transaction. Its market value is second to Bitcoin. Although receiving a few balking, investments in cryptocurrency may be a game-changer in the near future. Amongst the most popular digital currency is the Etheruem, getting massive attention. If you have the zeal and interest in investing in Ethereum and want to know the nitty-gritty of this virtual currency, this blog right here will answer your queries.
Let us first begin by explaining what is Ethereum.
What is Ethereum?
Ethereum in simple terms is a blockchain-based platform that is popular for its native cryptocurrency, ether, also known as ETH or just Ethereum. Because of the decentralized nature of blockchain technology, the Ethereum network is secure, allowing ETH to appreciate in value.
It is a platform that supports ether as well as a network of decentralized apps, or dApps. Smart contracts, which emerged on the Ethereum platform, are an integral part of the network’s functionality. There are numerous applications and usage of smart contracts and blockchain technology in this day and age across much Decentralized Finance (DeFi).
If you are wondering how is Ethereum created, the development involves a process called mining. The creation of Ether also involves validating transactions on the Ethereum platform. A set of people gives the validation of the transaction and they go by the name Miners.
Upon completion of an accurate and correct validation of a batch of transactions, Miners gets the reward of Ether. Miners adhere to a set of cryptographic rules that ensure the network’s stability, security, and privacy.