What is Cryptocurrency? |  What Is Ethereum ? | Exploring the Crypto World

What is Cryptocurrency?

What is a cryptocurrency? A cryptocurrency may be a digital representation of something valuable, like money, that only exists online. Cryptocurrencies use cryptography to verify and secure transactions, and are seen by many because the foundation of a far better future economy.

But what’s wrong with how we pay for things now? In a few words, it is too centralized. Every purchase that we make must be approved by a 3rd party that all of them charge a fee, adding up to a substantial amount of cash over time.

Also read - What are Smart Contract?

$ads={1}

What are Transactions in Cryptocurrency?

Transactions can also be extremely slow, it can sometimes take days for bank to guarantee that a payment has been received. Another issue is that these companies need to store endless amounts of personal data about their customers to work out who is trustworthy, but they can’t always be trusted to keep that information safe. If we don’t use a centralized source of information, how do we prove that we have paid when we buy something, or that we can actually afford to pay for it in the first place?

Also Read - What is Blockchain?

Solving this issue is one among the best achievements of the primary cryptocurrency ever created, Bitcoin. Bitcoin uses a peer to see payment network, where the responsibility to take care of a trusted ledger of transactions is shared between everyone, instead of one centrosome . And, as there's no central authority needed, there are not any disproportionate fees or personal data in danger of being compromised.

What is Bitcoin?

So, Bitcoin is a cryptocurrency that solves the issue of payment, but what else can cryptocurrencies do? Since 2008 countless cryptocurrencies are created, many of them completing different functions in several Blockchain ecosystems. 

Investors invest them because they believe the merchandise that the currency underpins. Many people see cryptocurrencies as tools which will help developing countries by reducing fees, offer greater access to banking, help combat inflation and fight corruption. Only time will tell if they change the world so drastically but one thing is for certain, the blockchain technology that they are built on is here to stay.

Also Read - What is Blockchain?

Trading in Bitcoin | Cryptocurrency

When we buy or sell things, the payment is typically processed by banks or a Mastercard company. But the issues with this process is that the businesses often take a cut of the transactions and that we need to trust these companies to guard our data from hackers. To solve these problems, a singular currency was introduced that guarantees security by being supported the science of cryptography – a math-based way of protecting information.

Also read - What are Smart Contract?

Cryptocurrency 2021 and its Growth

Since its electronic inception a touch quite a decade ago, cryptocurrency has grown from a largely-unnoticed non-regulated e-currency to being recognized worldwide for its discretion and accessibility. There are about 3,000 cryptocurrencies being traded with a total market value of $1 Trillion dated 2021 and the reality is the top 10 cryptocurrencies represent roughly 85 per cent of the total market value. Bitcoin, considered the foremost liquid cryptocurrency, involves accessing a cryptocurrency exchange that permits UAE residents to open accounts and trade using them.

$ads={2}

Also Read - What is Blockchain?

What is Ethereum?

What is Ethereum? Vitalik Buterin wrote the whitepaper for Ethereum in 2013. The whitepaper described an open-source, public, blockchain-based distributed computing platform that would run smart contracts: applications that run exactly as programmed with none possibility of downtime, censorship, fraud or third-party interference.

What are Smart Contract?

Ethereum makes it possible for developers to build and deploy smart contracts, as well as issue their own cryptocurrency directly on the Ethereum blockchain removing the need for the developers a create a new blockchain for their service. This doesn't just save the developers the time it takes to make a blockchain, it also gives them the safety and decentralization of Ethereum which isn't something inherent to all blockchains.

Also Read - What is Blockchain?

What is Ethereum Virtual Machine?

Smart contracts built on top of Ethereum make use of Ethereum's decentralized Turing-complete virtual machine, called the Ethereum Virtual Machine or EVM for brief . This is the part of the protocol that actually executes the smart contracts/scripts.

The EVM executes scripts using an international network of public nodes, ensuring the platform's censorship resistance. Scripts or smart contracts on Ethereum are written using a new programming language built specifically for Ethereum called Solidity. To incentivize people to run nodes and execute scripts, and to mitigate spam on the network, Ethereum has its own cryptocurrency, ether(ETH).

What is Gas in Ethereum?

When you make an operation on Ethereum you would like to pay an execution fee. The execution fee you pay is called “Gas” and is priced in ether. Gas measures what proportion work an action or set of actions takes to perform, the more computations the operation requires, the more Gas it'll need.

Also Read - What is Blockchain?

The amount of ether you pay per Gas is up to you, but remember that nodes prioritize requests counting on what proportion they pay. With Ethereum comes benefits such as reliable uptime. If a company's server were to break, their service would stop working, whereas if any given node on Ethereum stopped working there would be many more around the globe keeping the service online.

Also read - What are Smart Contract?

And the same goes for censorship, it's much easier for a malicious actor to shut down 1 centralized server than 100's or 1000'sspread around the globe. This protects the service, ensuring it’s always available for everybody in any a part of the planet . So briefly , Ethereum are often seen as a blockchain with a built-in programing language or sort of a consensus-based world computer that applications run on top of because they value the advantages offered by Ethereum over those offered by a traditional server!

For the latest tech, tips & tricks, top-notch gadget follow Not a technology’s Instagram, Facebook, Twitter and Pinterest.