The Buyt Desk
The popularity of Bitcoin brought blockchain technology to the forefront. The blockchain omits the need for a central authority for transactions between two parties. We are surrounded by the names of many cryptocurrencies. One of them is Ethereum. Though the internet is brimming with questions like the price of Ethereum, how to mine Ethereum, etc., Ethereum is not a cryptocurrency but a blockchain platform with its crypto by the name Ether(ETH).
Taking a cue from the Bitcoin blockchain evolved a peer-to-peer, open-source, secure, and decentralized computational network, Ethereum. While the Bitcoin network solely works to trade and mine bitcoins, Ethereum has gone a step ahead. The use of the Ethereum network is for individuals to directly trade anything and not only digital money.
Founders
Ethereum is the brainchild of blockchain enthusiasts, Joe Lubin and Vitalik Buterin. They started the network in July 2015. Buterin is the CEO of the Ethereum network.
Smart contracts
Let us say you want a ride. You and the driver can use the programming language of Ethereum, Solidity, to code a smart contract upon the agreed terms and conditions. There is no need for an intermediary like Uber. Essentially, a smart contract is a coded software to execute a transaction between dealing parties on the Ethereum blockchain. Once the smart contract conditions are fulfilled, it will be automatically executed on the Ethereum network. The transactions can neither be revoked nor be traced.
Ether
High computational power runs the Ethereum network. The upkeep of this supercomputing network requires money. With this objective, Ether (ETH), the cryptocurrency traded on the Ethereum network, was created. Miners solve mathematical calculations to verify and secure transactions in a block of the Bitcoin network. They earn bitcoins in the process. In the same manner, the cryptocurrency Ether is generated. Unlike Bitcoin, there is no limit on how many Ether can be mined. At present, based on market value, Ether is the second-largest cryptocurrency in the world. As of 10 June 2021, 1 Ether equals to Rs.1, 86, 295.50.
DApps
DApps refer to decentralized applications that run on the Ethereum network. They represent the front end of the smart contracts. The user interface of these apps is the same as the traditional apps; however, they run on the decentralized and distributed Ethereum network. You have to pay Ether to use these apps. The advantage of using DApps is the safety of your data. The absence of an intermediary ensures no one tampers with your data. Augur is a DApp that provides forecasting for trading gains.
Ethereum is a secure network but it suffered a setback in 2016. 50 million dollars worth of Ether were stolen under the name of the project DAO. To protect the network, a fork was created in the blockchain. The network is evolving to fix existing loopholes. July 2021 anticipates the implementation of Ethereum Improvement Protocol 1559 (EIP-1559). As a result, transactions on Ethereum will be more effective and improve the overall user experience.
