What is Ethereum

When it comes to the question of what is Ethereum, you first need to break the cryptocurrency into Ether, the currency unit. This is a digital currency that operates on contracts based on the Ethereum platform or network. This is an independent token based currency that is never controlled by the government or a central bank. As a user, you are part of the network management entities.

Ethereum enables you be part of a global financial network. It uniquely works on smart contracts. This is a coded script that you deploy in the currency blockchain. The system does not only work in the financial niche alone; you can use it in voting, keeping medical records, financial planning and international supply chains.

Ethereum is closely tied to the dollar due to the latter’s popularity, global distribution and acceptance. However, you do not have to worry about the Ether value; it is not controlled or dictated by any other currency. If you are looking for a real time based currency, Ether should be your first choice.

Ether is a global currency and is traded for other major currencies. Since it is real time based, its demand makes it change value. Price fluctuations are normal since these are determined by supply and demand. You need to understand that Ether is based on a new technology and its liquidity pool is still growing.

The development of Ethereum is being undertaken different phases and there is more in the waiting that what is currently on offer. Much of the concepts being used are similar to the Bitcoin. The only difference is that they are using Bitcoin mistakes to bring a better user experience. You get more features using the Ether token compared to Bitcoins.

Like other cryptocurrencies, you do not have a physical coin or token to put in your wallet. The Ether is a digital and you can only access your deposits, transfers and other transactions from the system records. Once you create a wallet or account, you are ready to start receiving and sending the first Ether.

The Ether network is similar to that of their competitor, Bitcoin. If you have ever used Bitcoins, you should not have issues navigating through the Ethereum system. Once you create an account, you can send and receive Ether tokens. These tokens represent the real value of your transaction.

The basic idea behind the network is not to work as a monetary system, but operating in smart contracts. You cannot use Ethereum like physical currency; it is slightly different from your usual credit card or PayPal.

Once you get the basics of what is Ethereum, you will appreciate the convenience it offers you. You can send and receive fund across the globe. Whether you are sending Ether to your neighbor or across the borders, the time taken is the same.