Most people who have ever been exposed to cryptocurrencies have heard of bitcoins. But there is another player in the crypto world that is becoming increasingly popular - Ethereum. According to market capitalization, Ethereum is in second place, right behind Bitcoin and was relatively close to first place in the past. Ethereum was invented by the native Russian Vitalik Buterin, a superstar in the crypt world. But what is Ethereum and why is it so popular?
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Vitalik Buterin, the founder of Ethereum
Central data storage
The problem - central data storage
Data on the Internet are always stored centrally. Even if providers want to create the illusion with the word “cloud” that your data will be stored decentrally, there is nothing behind it but a huge central server. This makes your data vulnerable, which can be a real problem, especially with sensitive data such as passwords. You can always read in the news that this happens more often than you think.
How can Ethereum solve this problem?
Ethereum is the opposite of central data storage. By decentralizing using blockchain technology, Ethereum wants to make intermediaries superfluous and monitor the fulfillment of contracts through so-called smart contracts. Data, contracts and many more are no longer stored centrally on a huge server by large companies, but decentrally on the blockchain.
How is this blockchain powered?
The Ethereum network is powered by so-called nodes. Nodes can be operated by any private person. These keep the network running and check transactions that are carried out via Ether (the currency of Ethereum).
Why is Ethereum particularly popular?
Ethereum is known not only because of the decentralization, but especially through the so-called “Smart Contracts”Technology. Smart contracts are programs that can perform various functions. An example: Person A and person B conclude a contract that a certain amount of ether is transferred when a service is performed. If this service is performed, the smart contract recognizes this state and carries out the transfer. The smart contract is stored in the blockchain.
What are dApps?
Another aspect that makes Ethereum so popular are so-called dApps. Like the name can already be guessed, these are apps. But not about conventional ones, but about dApps = decentralized apps. Manufacturers of conventional apps for central stores like Android and iOS have the problem of being dependent on the requirements and specifications of Google and Apple. If these are not met, the developers have no chance of making their applications available to users in this way.
Where can i buy Ethereum?