How Ethereum will change the world
If you are starting off into the cryptocurrency space, then you may not know much about Ethereum, but crypto enthusiasts do know about this particular coin very well.
It was first introduced and later developed by Vitalik Buterin and a few others (core members and co-founders of Ethereum). The concept of Ethereum was given by Vitalik in 2013, and Ethereum started being developed with the help of crowdfunding. On 30th July 2015, the Ethereum network went live. After Bitcoin, it is the largest cryptocurrency by market capitalization.
Ethereum is an open-source blockchain with decentralization and smart contract functionality. It is created as a platform where developers can create and deploy permanent and entrenched decentralized apps. The concept of the decentralized application is based on the concept of a financial environment where intermediaries will not exist, and transactions can be completed directly. Buterin was influenced heavily by Bitcoin, but the features of Bitcoin are limited; therefore, he wanted to create a token that can do much more rather than just trading and transaction.
One of the significant features of Ethereum is that it permeates the exchange and formation of NFTs (Non-fungible tokens). NFTs are non-interchangeable tokens that are linked with digital arts or any other real-world assets and are also sold as distinctive digital assets.
Both bitcoin and ethereum are based on blockchain technology. It is a decentralized technology where not one individual or authority is in control of tracking the transactions, and the dealing of digital coins occurs. The sole aim of Ethereum is to reduce the dependency on centralized financial systems and institutions. Whatever websites we use in the present day scenario are centralized (Amazon, Facebook, Twitter, Google, Instagram, etc.). The blockchain technology enables its user to skip the third-party connection and conduct the transactions using smart contracts.
Ethereum has a component called Ether which is not just a token, but it also helps in running the blockchain smoothly. Ether also creates a blockchain network in which Ethereum runs. Therefore mining Ethereum is essential to run the whole blockchain technology smoothly. But the supply of Ethereum is not endless; each year, only 18 million ether is released. Etehreum also has its own wallet available on most of the popular platforms, including iOS and Windows. But the wallet’s capabilities do not stop at holding the Ether; it creates and connects the Ethereum network simultaneously.
With further updates from the Ethereum development team led by Buterin, Ethreum is updating to Ethereum 2.0, where it is introducing Proof of Stake (PoS). This system is making mining progress smoother, easier and quicker. Also, it can benefit the environment because the whole mining process will consume less electricity.
Either way, no one can say with absolute certainty what is going to happen tomorrow. Nevertheless, Ethereum, with its updates of Ethereum 2.0, can give a further boost, which may help change the entire financial system. Let’s keep a lookout for that.