What Is Ethereum?

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Table of contents

  1. Empty
  2. What Is Ethereum All About?
  3. Ethereum, ETH, and NFT: What’s the Difference?
  4. What Is There to Gain from Ethereum?
  5. The Flipside of Ethereum
  6. Final Thoughts

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{"blocks":[{"key":"et507","text":"Although it was created to fit into the world of decentralized finance, Ethereum is more than just a cryptocurrency provider. So, what is Ethereum exactly? Ethereum is a platform that offers a DIY approach to creating user-controlled applications. Let’s dig deeper and see what this actually means!\n ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":298,"style":"color-rgb(0,0,0)"},{"offset":0,"length":298,"style":"bgcolor-transparent"},{"offset":0,"length":298,"style":"fontsize-11pt"},{"offset":0,"length":298,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}

What Is Ethereum All About?

{"blocks":[{"key":"4cem5","text":"You might have heard how cryptocurrencies like Bitcoin use a blockchain to create, store, and encrypt a virtual value. Ethereum also uses a blockchain to mine for digital coins, but it’s also much more flexible. It would be more accurate to think of Ethereum as both a platform and a programming language. You can still use the platform to own a wallet and conduct transactions, but you can also use the programming language (Solidity) to code a decentralized finance app or a DApp. DApps is where things get interesting on Ethereum, with categories ranging from trading and art monetization to gaming!\n ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":602,"style":"color-rgb(0,0,0)"},{"offset":0,"length":602,"style":"bgcolor-transparent"},{"offset":0,"length":602,"style":"fontsize-11pt"},{"offset":0,"length":602,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}

Ethereum, ETH, and NFT: What’s the Difference?

{"blocks":[{"key":"cbu2v","text":"Quite often, the terminology gets a bit confusing, especially if you’re new in the world of crypto. Let’s take a deeper look:","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":125,"style":"color-rgb(0,0,0)"},{"offset":0,"length":125,"style":"bgcolor-transparent"},{"offset":0,"length":125,"style":"fontsize-11pt"},{"offset":0,"length":125,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"a9f9e","text":"Ethereum Tech","type":"header-three","depth":0,"inlineStyleRanges":[{"offset":0,"length":13,"style":"color-rgb(67,67,67)"},{"offset":0,"length":13,"style":"bgcolor-transparent"},{"offset":0,"length":13,"style":"fontsize-14pt"},{"offset":0,"length":13,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"6jjs3","text":"Ethereum is the set of algorithms in a network of thousands of computers worldwide that work together to provide DApps and virtual tokens. You can see Ethereum’s tech in data services like Uniswap, Matcha, Golem, and Augur. Additionally, it was most recently famous for its art monetization. What makes all these various applications possible on the platform is a little nifty thing called smart contracts. These are transaction codes that get executed automatically without pending approval from authorities or admins, turning the platform into an uncensored trading space.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":574,"style":"color-rgb(0,0,0)"},{"offset":0,"length":574,"style":"bgcolor-transparent"},{"offset":0,"length":574,"style":"fontsize-11pt"},{"offset":0,"length":574,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"clk9j","text":"Ether Currency (ETH)","type":"header-three","depth":0,"inlineStyleRanges":[{"offset":0,"length":20,"style":"color-rgb(67,67,67)"},{"offset":0,"length":20,"style":"bgcolor-transparent"},{"offset":0,"length":20,"style":"fontsize-14pt"},{"offset":0,"length":20,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"4mtq2","text":"Ether (also shortened to ETH) is just one product of the Ethereum technology, and it’s basically like any other cryptocurrencies out there. To buy Ethers, you can use Paypal or credit cards. Alternatively, you can use other cryptos through a C2C transaction. You don’t even have to buy a whole coin since Each ETH contains a quintillion Wei! This means that you can start with a fraction and build your way up from there.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":421,"style":"color-rgb(0,0,0)"},{"offset":0,"length":421,"style":"bgcolor-transparent"},{"offset":0,"length":421,"style":"fontsize-11pt"},{"offset":0,"length":421,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"5jkj6","text":"Here’s a little tip:","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":20,"style":"color-rgb(0,0,0)"},{"offset":0,"length":20,"style":"bgcolor-transparent"},{"offset":0,"length":20,"style":"fontsize-11pt"},{"offset":0,"length":20,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"b00qg","text":"If you’re looking to invest, we recommend starting with 5% of your entire portfolio. Once you own ETH, you can store it on Ethereum Wallets. These are online or “hot” storages that can be attached to USB sticks and converted to “cold” storages.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":244,"style":"color-rgb(0,0,0)"},{"offset":0,"length":244,"style":"bgcolor-transparent"},{"offset":0,"length":244,"style":"fontsize-11pt"},{"offset":0,"length":244,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"9i8sg","text":"Non-Fungible Token (NFT)","type":"header-three","depth":0,"inlineStyleRanges":[{"offset":0,"length":24,"style":"color-rgb(67,67,67)"},{"offset":0,"length":24,"style":"bgcolor-transparent"},{"offset":0,"length":24,"style":"fontsize-14pt"},{"offset":0,"length":24,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"cdtju","text":"Non-Fungible Tokens also use the Ethereum blockchain. The main difference between Ether and NFT is that NFTs are inherently unique. All Ethers out there are identical in every way possible. Meanwhile, NFTs are one-of-a-kind mined assets that are most commonly used to trade digital artwork. Content creators can attach the media to the virtual coin and sell the NFT as a receipt of ownership of the artwork itself. Since it’s not limited by a shared market value like regular Ethers, an NFT can have varying price tags. For instance, Mike Winklemann sold one for a whopping $69.3 million!","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":588,"style":"color-rgb(0,0,0)"},{"offset":0,"length":588,"style":"bgcolor-transparent"},{"offset":0,"length":588,"style":"fontsize-11pt"},{"offset":0,"length":588,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}

What Is There to Gain from Ethereum?

{"blocks":[{"key":"6rhlo","text":"Besides powering some of the most important DApps out there, Ethereum is a good solution to many modern problems. Here’s why:","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":125,"style":"color-rgb(0,0,0)"},{"offset":0,"length":125,"style":"bgcolor-transparent"},{"offset":0,"length":125,"style":"fontsize-11pt"},{"offset":0,"length":125,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"4f70g","text":"It’s Secure","type":"header-three","depth":0,"inlineStyleRanges":[{"offset":0,"length":11,"style":"color-rgb(67,67,67)"},{"offset":0,"length":11,"style":"bgcolor-transparent"},{"offset":0,"length":11,"style":"fontsize-14pt"},{"offset":0,"length":11,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"20kmt","text":"A large part of what makes Ethereum so secure is its decentralization. Think of a mega, virtual computer that combines the power of all individual computers running on the system! Add to the mix fierce cryptography, and you’ll get a system that keeps your credentials, transactions, and wallet safe from cyber-attacks. Keep in mind that a certain DApp’s security level also depends on how fail-proof its code actually is.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":421,"style":"color-rgb(0,0,0)"},{"offset":0,"length":421,"style":"bgcolor-transparent"},{"offset":0,"length":421,"style":"fontsize-11pt"},{"offset":0,"length":421,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"7jk7f","text":"It’s Accessible","type":"header-three","depth":0,"inlineStyleRanges":[{"offset":0,"length":15,"style":"color-rgb(67,67,67)"},{"offset":0,"length":15,"style":"bgcolor-transparent"},{"offset":0,"length":15,"style":"fontsize-14pt"},{"offset":0,"length":15,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"2ku3i","text":"Another appeal for cryptocurrency, in general, is how accessible it is. No matter where you are or how much you make, all you need to use ETH is an internet connection. Plus, peer-to-peer platforms like Ethereum put the power in the hands of the people instead of corporations, authorities, or banking systems. Once a DApp is out there, the power is in the hands of the community as a whole. Even if the entire developing team backs out, the DApp is still going to be available for use.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":486,"style":"color-rgb(0,0,0)"},{"offset":0,"length":486,"style":"bgcolor-transparent"},{"offset":0,"length":486,"style":"fontsize-11pt"},{"offset":0,"length":486,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"2j8o6","text":"It Cuts the Middle Man out of the Equation","type":"header-three","depth":0,"inlineStyleRanges":[{"offset":0,"length":42,"style":"color-rgb(67,67,67)"},{"offset":0,"length":42,"style":"bgcolor-transparent"},{"offset":0,"length":42,"style":"fontsize-14pt"},{"offset":0,"length":42,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"58om9","text":"Before Ethereum, developers resorted to third-party providers to incorporate services into their apps. Today, they can easily rely on the Ethereum algorithm for built-in payment through smart contracts without having to shell out on massive fees. As it happens, this is also better for your privacy as a DApp user. You no longer need to consent to third-party server permissions.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":379,"style":"color-rgb(0,0,0)"},{"offset":0,"length":379,"style":"bgcolor-transparent"},{"offset":0,"length":379,"style":"fontsize-11pt"},{"offset":0,"length":379,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}

The Flipside of Ethereum

{"blocks":[{"key":"d43eg","text":"So far, Ethereum sounds very enticing with its security, accessibility, and applicability to various fields.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":108,"style":"color-rgb(0,0,0)"},{"offset":0,"length":108,"style":"bgcolor-transparent"},{"offset":0,"length":108,"style":"fontsize-11pt"},{"offset":0,"length":108,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"36tvs","text":"Where’s the catch?","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":18,"style":"color-rgb(0,0,0)"},{"offset":0,"length":18,"style":"bgcolor-transparent"},{"offset":0,"length":18,"style":"fontsize-11pt"},{"offset":0,"length":18,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"fsicc","text":"Well, Ethereum, like any other technology, has its downsides. Mainly, it negatively impacts the environment.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":108,"style":"color-rgb(0,0,0)"},{"offset":0,"length":108,"style":"bgcolor-transparent"},{"offset":0,"length":108,"style":"fontsize-11pt"},{"offset":0,"length":108,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"8qu2g","text":"Ethereum Carbon Emissions","type":"header-three","depth":0,"inlineStyleRanges":[{"offset":0,"length":25,"style":"color-rgb(67,67,67)"},{"offset":0,"length":25,"style":"bgcolor-transparent"},{"offset":0,"length":25,"style":"fontsize-14pt"},{"offset":0,"length":25,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"fgu3m","text":"Just like any other cryptocurrency. To “create” a coin, a computer needs to solve complex mathematical problems. That’s called mining by producing a Proof of Work (PoW.) However, mining isn’t just a virtual action that has no impact on real life. There’s always a cost to pay. In this case, it’s time, hardware, and electricity consumption.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":340,"style":"color-rgb(0,0,0)"},{"offset":0,"length":340,"style":"bgcolor-transparent"},{"offset":0,"length":340,"style":"fontsize-11pt"},{"offset":0,"length":340,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"fltcr","text":"Unfortunately, the mining participants aren’t the only ones paying for this investment, but the entire planet has to deal with the increased carbon emissions as a result. Each transaction on Ethereum has a footprint of 146.49kg. That’s more than 320,000 regular VISA transactions! And that’s not all. With every new transaction, the mathematical problems get a bit harder and thus, require more computing power. At this rate, many ETH miners find themselves in quite the bottleneck situation as they go forward. Hopefully, the new and updated Ethereum 2.0 will turn out to be more efficient, sustainable, and environmentally friendly!\n ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":634,"style":"color-rgb(0,0,0)"},{"offset":0,"length":634,"style":"bgcolor-transparent"},{"offset":0,"length":634,"style":"fontsize-11pt"},{"offset":0,"length":634,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}

Final Thoughts

{"blocks":[{"key":"f17n2","text":"All things crypto can get confusing, but by now, it should be a bit easier to answer the question: What is Ethereum? From a wide perspective, Ethereum is a platform made up of thousands of individually-owned computers that allow participants to code apps and trade securely. In short, you could say that Ethereum is bringing us one step closer to a decentralized internet.\n ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":372,"style":"color-rgb(0,0,0)"},{"offset":0,"length":372,"style":"bgcolor-transparent"},{"offset":0,"length":372,"style":"fontsize-11pt"},{"offset":0,"length":372,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}