Ether, decentralized applications, smart contracts and blockchain are just a few concepts that revolve around Ethereum and its operation and that it is imperative to understand.
What does each of these ideas mean and how are they associated within this platform?
Since this is one of those topics that at some point or another appears on the scene, you probably know basic details about Ethereum and the essential features of this blockchain platform. But what about Ethereum and how it works? What are the keys of this blockchain protocol?
In principle, most people who are minimally familiar with this can say that Ethereum is a blockchain platform that allows developers to design and implement decentralized apps.
Also known as DApps, the great main of these is that they do not depend on unique entities. Respond to all usersand that is why the concept of decentralization is so revolutionary.
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Origins of Ethereum
To learn more about its operation, we must say that the Ethereum project began in 2014, thanks to the Ether pre-sale that its creators carried out that year and, since then, the different qualities of the platform led this cryptocurrency to be one of the main ones by capitalization.
The technology it uses has remained basic but has introduced interesting new features, for example support for ERC-20 tokens and the change from proof-of-work (PoW) to proof-of-stake (PoS) mining.which has given it a boost as an investment possibility for the most ambitious and has multiplied its fame.
To this we must add that Ethereum is a public open source blockchain platform that allows you to replicate what is said “smart contracts”, a series of agreements executed by a computer algorithm.
And if we focus specifically on the field of cryptocurrencies, it is the token that is used to pay fees related to transactions on the network, which gives miners the opportunity to earn Ether by mining.
More Ethereum Features
The Ethereum virtual machine -EVM- and the smart contracts it runs allow developers to work in new spaces, store debt records and move funds according to instructions given long ago, greatly facilitating the creation of blockchain applications for developers. beginners.
Later, decentralized applications built on Ethereum can be used to control real world objects like cars or houses. The potential of your solutions is infinite and we are only just seeing it.
DApps powered by smart contracts
A smart contract is a computer program that runs on the Ethereum blockchain and can facilitate, execute, and enforce a negotiation, ensuring compliance with the agreements between the parties.
When you agree with someone, whether it is a business deal or a personal arrangement like sharing a house, you are entering into a contract. In most cases, these agreements contain sanctions if either or both parties do not respect them; otherwise there would be no incentive to keep them active.
With smart contracts, both parties must honor their part of the bargain or face penalties for executing code embedded in their contract.and that is why they are suitable for this type of commitment.
How does the Ethereum blockchain work?
One of the keys to Ethereum is that on its decentralized platform that runs smart contracts, the apps are conducted exactly as scheduled without censorship, potential for downtime, fraud, or third-party interferenceendowing them with abnormal security, privacy and freedom.
Account classes, value transfer and gas
If we take a closer look, we will discover that in Ethereum there are different accounts:
Externally Owned Accounts (EOA): This is what we think of when we talk about people or organizations that have an account on the blockchain. EOAs have an address that is derived from the public key and can be used to send Ether and other transactions, so pretty much all of us would be using it on a daily basis. Contract Accounts – Contracts are pieces of code that run on Ethereum even when they don’t store Ether. But if can receive the currency as part of the operation, as if it were another asset. Accounts with a single owner: an account with a single owner does not carry a gas fee since the owner himself will always pay the fees. Thus, you must wait until you pay enough gas before executing instructions.
Ethereum Advantages
At this point, you probably want to review the advantages of Ethereum for your success. We could say that the Ethereum blockchain has many benefits compared to others.
It is more than just a cryptocurrency, as it offers users some unique features that make it stand out from the crowd of currently popular blockchains, and among them it is easy to single out issues such as ability to carry out DApps or smart contracts inside the platform.
In addition to this, Ethereum provides faster transaction speedsprocessing operations faster than in other popular cryptocurrency networks such as Bitcoin or Litecoin, to name two.
In addition, their transaction fees are very lowso this best experience has no cons.
What else would you like to know about Ethereum and how it works?
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