EthereumEthereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.
What is Ethereum?
Ethereum is a blockchain based open source platform on which many applications can be built. The idea behind Ethereum platform is to create a web of decentralized apps: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.
Unlike Bitcoin, Ethereum’s main focus is not payment although its native token ether could also be used for payment purposes. The key focus of Ethereum is to serve as a platform for the execution of smart contracts. Given its stronger functionalities, the platform has been widely regarded as the second generation blockchain technology.
How does Ethereum work?
Ether is the native token of the Ethereum network. It is also the fuel for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations.
Ether, like Bitcoin, could be used as a means of payment.
Ethereum features the usage of Smart Contracts in its blockchain technology. Smart contracts are also known as Digital Contracts or Self Executing Contracts.
Smart Contracts are account holding objects that remove the necessity of a middleman when a contract has to be established. In current context, Ethereum Smart Contracts helps in exchanging financial assets or anything of value in a transparent, conflict-free way. They contain code functions and can interact with other contracts, make decisions, store data, and send ether to others. Contracts are defined by their creators, but their execution, and by extension the services they offer, is provided by the ethereum network itself.
Similar to Bitcoin, Ethereum started with Proof of Work (“POW”) as its main consensus algorithm. The network has since then moved into a hybrid system where some of the transactions (1 out of 100) are being processed through a Proof of Stake (“POS”) mechanism (Casper Protocol). Eventually the Ethereum Foundation plans to switch to a pure POS model.
SEC Announces : Ethereum NOT a Security
Hashreader News on 2018-06-14
The SEC has revealed that it will not be classifying Ether or bitcoin as securities. This is huge news for the cryptocurrency community. It’s the first time the major US regulatory organization has officially stated that Ether (ETH) isn’t a security.
Vitalik Buterin: Ethereum Will Eventually Achieve 1 Million Transactions Per Second
Hashreader News on 2018-06-19
Vitalik Buterin, the creator of Ethereum, has explained in a recent OmiseGO AMA session that with second-layer solutions such as Sharding and Plasma, the Ethereum network will eventually be able to process 1 million transactions per second and potentially more than 100 million transactions per second.