Exploring the ins and outs of Ethereum

Exploring the ins and outs of Ethereum
Bitcoin introduced the world to cryptocurrencies. Ethereum, on the other hand, showed the world the potential of cryptocurrencies. Four years after Ethereum’s launch it is still one of the most favourable cryptocurrencies. The price of Ethereum has grown by more than 1 000% since its inception in 2015. Today we take a look at the ins and outs of Ethereum.

The ins and outs of Ethereum

Ethereum is one of the most popular cryptocurrencies and rightfully so. According to Coinmarketcap its market cap is the second biggest ($18,908,682,059 USD), following Bitcoin.

Ethereum features a decentralized software platform that is both open-source and blockchain-based. With its token, Ether, users can utilize SmartContracts and Distributed Applications or DApps.

A SmartContract is basically a contract between concerned parties. With the contract, one can digitally verify, enforce and facilitate an agreement between various parties. It is signed and stored on the Ethereum blockchain and is free from fraud and third-party interference. It is more cost effective and secure than traditional contracts as they are irreversible and trackable. For example, if you are renting an office building you can sign the rental agreement via SmartContracts. The network can even pay across monies owed to the respective parties on specific dates.

DApps are applications or apps that run on a blockchain. Just like one would download apps from the Play Store for example, DApps are apps built on a decentralized network. Anyone can have a DApp since the platform has its own programming language that enables developers to build and publish their DApps.

Ethereum success story

So, the two main uses of Ethereum is that it can be used to run applications and one can trade with Ether on various cryptocurrency exchanges. Visit the official Ethereum webpage.

In general, Bitcoin is seen as a store of value whilst Ethereum on the other hand, is regarded as a faster payment method. Bitcoin’s block time is 10 minutes while Ethereum’s block time is 15 seconds!

It is worth mentioning that Ethereum is involved with various big projects. One such is Ethereum’s partnership with Microsoft’s ConsenSys that runs on Microsoft Azure. Ethereum serves as a cloud-based blockchain developer environment for Azure customers.

What does the future hold for Ethereum?

In recent news Commodities Futures Trading Commission chairman, Heath Tarbert said Ether futures contract may be launched in 2020.

Furthermore, Ethereum hodlers are looking forward to ETH 2.0. ETH 2.0 is the transition from Ethereum being Proof-of-Work (PoW) to Proof-of-Stake (PoS). At this stage, it is said the first transition phase will take place in November and the second transition will take place in Quarter 1 of 2020. After the transition, Ethereum will be launched with a PoS algorithm. This will be great for the network!

In conclusion, Ethereum opens a world of endless possibilities with regards to decentralized payments and applications. Be sure to make Ethereum part of your investment portfolio on AltCoinTrader. AltCoinTrader ensures secure easy crypto trading.