Everything you need to know about Ethereum
Ethereum is for most of developers, the best possible choose as a platform for writing decentralized apps, when you use blockchain technology. Here is all you should know about Ethereum at the beginning. Let’s check our starter guide!
Coming back to the beginning – what is a cryptocurrency?
Because of the noise around cryptocurrency it’s not easy to understand what it is exactly, so here you can find simple definition. The cryptocurrency is nothing more than some kind of digital asset working as platform or medium of exchange. Cryptocurrency is using cryptography for controlling and securing transactions. It’s “limited entries in a database no one can change without fulfilling specific conditions” – based on definition from Blockgeeks.com
- Is created and stored in the blockchains
- Exist only in network and doesn’t have any physical form
- Network is decentralize
- Supply is not determined by central bank
What is Ethereum
After bitcoin, Ether is the 2nd most valuable form of digital money. The technology it runs on is called Ethereum. For further explanations we need to use the simplest definition which says that Ethereum is nothing more than open software platform. This platform based on blockchain technology and enables to build and deploy decentralized applications.
Is Ethereum similar to Bitcoin?
Ethereum as an open platform based on blockchain technology:
- allows “blocks” that can be created faster than Bitcoin (blocks are records of transactions)
- is better for transactions, rather than storing value
- allows for computer application, not just currency, to run the network
“Bitcoin is first and foremost a currency; this is one particular application of a blockchain. However, it is far from the only application. To take a past example of a similar situation, e-mail is one particular use of the internet, and for sure helped popularise it, but there are many others.” Dr Gavin Wood, Ethereum Co-Founder
Smart contract is some kind of computer code using to facilitate the exchange of specific value. Smart contracts are running on the blockchain as kind of computer program – when certain conditions are met, the program carries out the terms of the contract.
The Ethereum Virtual Machine
Ethereum blockchain have a built-in programming language, or a consensus based globally executed virtual machine. Ethereum Virtual machine (EVM) in simple definition is some kind of protocol that handles internal state and computation. That means EVM is a large and decentralized computer, which contain objects (“accounts”), which have ability to execute code or maintain internal database. Ethereum Virtual Machine main goal is to provide the security, preventing Denial-of service attacks and ensuring programs do not have access to each other’s state.