What is Ethereum (ETH) ?

What is Ethereum (ETH) ?

How does the Ethereum ?

Ethereum is a network of computers that allows you to create a new type of applications. It is, in fact, a network of computers ultra-secure that are in the world. This makes the information sent and received by this application are no longer processed by a server, but by the network of computers in which each computer performs a small part of the work.

In exchange for this work, the members of this network receive the ethers. The ethers are the fuel that allow applications to work. If a user does not need to ethers, so it can be resold to developers of applications. This will allow application developers to have fuel for the operation of their applications so that users will be able to monetize their work.

Ethereum is a huge network of thousands of computers that run multiple applications. This is what is called the decentralisation of applications. For a safe operation and transparent, this network works by using the principle of the blockchain : this is a large register in which the lines are automatically filled in by the various participants in the network. However, on this blockchain, it is impossible to delete or modify a row that already exists. The information that appears on the blockchain are called smart contracts.

 

The benefits of the blockchain for Ethereum

Use the blockchain for its decentralization offers several benefits to the Ethereum :

  • The blockchain is public, which allows all users to be informed of all transactions that take place. In addition, it is not possible to modify the blockchain, which is that you can view all transactions that have taken place since its creation.
  • This also protects against any risk of data corruption. In effect, since all participants have a copy of the database, it is almost impossible to corrupt its data.
  • The blockchain works with an encrypted protocol, which is also almost impossible to hack.
  • Given the size of the network, computers will always be available to feed it. This allows him to offer a very high reliability.

The usefulness of the Ethereum

As we have already seen, the ethers can not only be used as a fuel for the operation of applications, but they can also be resold to developers who need it. However, they can also be used on various applications, by being spent as real money. Taking the example of an application of online betting that accepts the ethers, you can then use the ethers to bet in the same way as with money. However, instead of earning money, you will earn the ether.

What you must remember

  • Ethereum is a network of computers that allows applications to run in a new way, using the power of thousands of computers that connect around the world.
  • This network is totally secure and transparent through the use of a blockchain.
  • Contributing to the network you’ll earn ethers, that you can use to run apps, use in an application or resell it to interested people.