The 5 essential facts to Understand Ethereum

Ethereum is a digital platform that takes advantage of the technology known as blockchain or chain of blocks to offer those who use it a series of applications. The cryptocurrency used in these operations is ether.

It is worth delving into the essential features of this platform, born in 2015. 

What is Ethereum?: 5 key facts

But first, take note of 5 fascinating facts about Ethereum:

Its creator

First of all, it is interesting to note that, contrary to what happens with the founder of Bitcoin, the original and most successful cryptocurrency, the one on the platform that now concerns us does not use a pseudonym.

Its creator is Vitalik Buterin, originally from Russia. And not only does he not hide, but he is also very active on social networks since he complements his great intelligence with an extroverted character, which even extends to his wardrobe.

Buterin, apart from being an entrepreneur, is idealistic since he believes his invention can contribute to a fairer world. The decentralization of operations it promotes empowers small actors against large transnational corporations.

How it works

On the other hand, we must appreciate that the main instrument on which the architecture of this network of operations is based is the smart contract. It is an automation that lowers management costs, adds precision and eliminates the participation of intermediaries.

It contributes to a decentralized system of operations that, for example, can leave aside the commissions charged by banks and the control they can exercise.

READ MORE: BudBlockz Crypto: The Revolutionary Blockchain Solution for Cannabis Businesses

How to Invest

You have to open an account on a trading platform that allows you to trade ethers. You will work with derivative contracts on the price of this cryptocurrency, but it will not be on your property.

Keep in mind, in this sense, that, as in any other investment, losses can exceed deposits. On the other hand, we remind you that leverage increases the impact of both profits and losses.

Is it the same as Bitcoin?

On the other hand, we must emphasize that, among all the cryptocurrencies that have been emerging, others are the only ones that have real possibilities to overshadow bitcoins. However, some differences in nature influence this competition.

Many experts do not consider that ether can fulfil the function of alternative currency since its main uses are based on preparing the ground for decentralized applications and smart contracts. In contrast to ether, bitcoins have only been generated to be used as cryptocurrencies.

READ MORE: Gateex Cryptocurrency – The Future of Secure and Easy Crypto Trading

Is there a quantity limitation?

Finally, we inform you that there is no limit to the number of ethers that can be released, but you do have to assess that one of 18 million per year will be imposed. The combination of these two circumstances has the consequence that the amount of ether that is going to be injected into the markets will be constantly renewed.

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