What is Ethereum?
Ethereum (ETH) is a blockchain technology-based platform that allows developers to create and publish decentralized applications. It is indeed much more than “just” a crypto currency, but it is also part of what Ethereum offers.
So it’s like Bitcoin then? Yes and no. What Ethereum and Bitcoin have in common is that they are based on a public, distributed network known as a blockchain, but that’s where the similarities end. Bitcoin offers only one central application – an electronic peer-to-peer currency system for online transactions. It is a currency in its purest form. While Bitcoin uses blockchain technology to track who owns Bitcoins, Ethereum uses the network as a platform to allow virtually any decentralized application.
Where did Ethereum come from, who created it?
Ethereum was originally created in 2013 by Vitalik Buterin, a crypto currency researcher and programmer who previously worked on Bitcoin. The basis for the new platform was then set in an online crowdsale in 2014. The system went into action on 30 July 2015, when it offered 11.5 million “coins”.
How does Ethereum work?
In the Ethereum blockchain, the currency is not “mined” as in Bitcoin mining. Instead, the members of the network work to “earn” ether. Ether is not only used as a tradable quantity. The developers of the network also use it to pay for services in the network.
Is ether safe?
Ether (according to today’s technical knowledge) is considered absolutely safe from a technical point of view, but like many other instruments it can also pass through moments of high volatility. The value can change, and increases and decreases in value are possible.