What is Ethereum?

Published on: 30 Apr 17:17

It was inevitable that after the advent of a real working cryptocurrency, Bitcoin, in 2009 that others would soon follow. Enter Ether, which is a cryptocurrency that operates on Ethereum. So what’s Ethereum? Ethereum and its accompanying cryptocurrency, Ether, is the subject of this blog post by cDuel, the best online trading simulator. By signing up for our free currency exchange simulator, you can practice trading cryptocurrencies, using real-time values without the risk of losing anything. You can play and compete against your friends, all while having fun. Visit our website today to get started!

WHAT IS ETHEREUM?

Ethereum was launched in 2015 and has since become the largest and most well-established, open-ended decentralized software platform. The goal of Ethereum is to use blockchains to replace internet third parties and create a decentralized way to store data, while allowing developers to build and run distributed applications (ĐApps) as well as smart contracts, which are self-executing contracts where the terms are defined and executed using software and are stored and secured by blockchain technology. Besides these advantages, smart contracts are known to run exactly as programmed without downtime, censorship, fraud, or third-party interference, which is the whole goal of decentralizing the internet. DApps run on a distributed computing system, or a peer-to-peer network of computers rather than a single computer, allowing for an unlimited number of participants. The goal of Ethereum is to eliminate fraud and interference from those with vested interests. Ether is the cryptocurrency that powers Ethereum.

WHY IS THIS IMPORTANT?

The internet is a centralized system whereby all of our personal data (passwords and financial statements) are stored on other people’s computers, or in the Cloud or on a server. However, since we are no longer in control of our data, it is now vulnerable to third parties looking to gain access to our information (i.e. hackers, malware, and ransomware). Hence the birth of Ethereum, which uses blockchain technology in order to secure and store your information safely.

CREATING A WORLD COMPUTER

The idea behind a decentralized internet is to have every person responsible for security, and every one able to verify others, just like in a traditional blockchain, and keep an eye on your and others data. It would democratize the internet in some people’s eyes. Like miners in cryptocurrency trading who verify transactions, Ethereum would use “nodes” who would compete to offer the same services the Cloud and servers offer today.

In theory, decentralized blockchain systems like Ethereum would give us the control we had before all of our personal information was stored on computers, but with the easy accessibility the digital age brings. Just like every transaction is added to the blockchain when dealing in cryptocurrency, every time you edited something online, all the nodes would note the change, making it virtually impossible to alter changes or to steal information. We’d have control over the apps and the information the apps store so that no one entity could delete an app at will or whim.

Albeit Ethereum has its skeptics, the potential application (similar to the potential for cryptocurrency) is far-ranging.

Ether, being a token (which is another word for cryptocurrency because cryptocurrency exists as pieces of token data) on the Ethereum platform, is therefore popular by those looking to develop applications to run on the Ethereum platform. The appealing aspect of Ether (and one reason it is popular) is because it has two primary functions:

  1. It’s a digital currency or cryptocurrency.
  2. It can be used inside Ethereum to both run applications and to pay for work.

If you listen to Ethereum, they define Ether as a cryptocurrency that can be used to “codify, decentralize, secure, and trade just about anything,” which would make its potential unlimited.

ETHEREUM AND BLOCKCHAINS

Like all digital currencies, Ether works because of blockchains. Blockchains are the list of transactions made in a currency and is available to all on the network. Using cryptography (which is the security method that makes ordinary information unreadable), blocks are added to the blockchain that cannot be manipulated once added and verified. The blockchain promotes confidentiality, protects the sender of the message, and prevents theft and alterations, which must exist for members to feel comfortable using it.

Ethereum is not just a platform, but it is also a programming language (Turing complete) running on a blockchain, helping developers to build and publish distributed applications and peer-to-peer contracts. While Ether is a digital currency, its primary purpose is to facilitate and monetize the work of Ethereum whose purpose is to help developers and coders build and run distributed applications (ĐApps).

HOW CDUEL CAN HELP

Bottom line is that the world is changing and in a decade, digital currency will be commonplace as technology progresses, more applications and uses are found, and the idea of having a fool-proof, secure, and private system takes hold.

cDuel is an online trading simulator game that will help you be ready for when cryptocurrency takes root. Our cryptocurrency trading game is easy to use and fun to play. You will learn how to trade cryptocurrency, using real-time market prices based on real cryptocurrencies. You’ll engage in matches to see who can gain the most return on investment. cDuel is a safe place to learn without risking any money. Our cryptocurrency trading game is the best on the internet. It’s free to join, so invite your friends, and begin today!