What is Ethereum? A Step-by-Step Beginners Guide
The world is constantly evolving, and almost on a daily basis, man finds easier ways of doing things and carrying out tasks. In days of old, there were very few forms of investment. In fact, many people would rather keep their money at home since the level of financial education was not as it is today. These days, there are different ways to invest. While some may prefer real estate and property investment, others have developed a special kind of affection for the financial market. Hence, it is not uncommon for people to invest in bills of exchange, treasury bills, and cryptocurrency.
Since the turn of the twentieth century, cryptocurrency has been growing in the statue. It is gaining ground as a viable form of investment. Unlike bank-controlled investments, cryptocurrency has no centralized system. Instead, it uses cryptography for transaction security and a decentralized control that functions through a blockchain.
What is ETHEREUM?
We have introduced ourselves to the basics of cryptocurrency. The next big question that deserves an answer is ‘what is ethereum?’ Ethereum is the generator of the cryptocurrency called ether. Ethereum is a blockchain based operating system that uses scripting functionality. Read more about ethereum code. Ethereum is written in C++, Rust, and Go programming language. It was launched in 2015 and split into distinct blockchain in 2016 following the failure of the DAO (decentralized autonomous organization) project. Ethereum has grown so much in popularity that it experienced a 13,000 percent growth in 2017. Since ethereum is not controlled by any government agency, it is not autonomous, and unlike other centralized applications and software, it doesn’t have a single point of failure since its control is spread across all users.
So many people have tried to compare ethereum with bitcoin (the most popular cryptocurrency and payment system in the world) albeit there is a lot of dichotomy between the two. Unlike bitcoin, ethereum has its coding language, internet browser and system of payment. The founding members of ethereum are Mihai Alisie, Vitalik Buterin (who developed the whole concept), Charles Hoskinson, Gavin Wood, Anthony Di Lorio, and Joe Lubin.
Ethereum for beginners
So many people are thinking of delving into ethereum as a method of transacting. However, they are held back by fear. For starters and in layman’s language, ethereum is a platform created for sending and receiving money on the internet called ether. Although the roots of ethereum can be traced to bitcoin, it must be stated clearly that ethereum differs largely from bitcoin. Ethereum consists of smart-contracts (computer codes) and accounts (keys and addresses). Contracts and accounts are very much capable of performing sending transactions – a term used to describe the act of sending and receiving ether from account to account. You have to pay a little money into the system before you can send or transfer money on ethereum. This money paid into the ethereum network is called gas. This gas acts as a catalyst. It helps to speed up the pace of transactions. Therefore, the more gas you have, the faster the transaction will be concluded. As a starter, here are a few things for you to note
As a fresher, make sure you ask questions. Do not rush into consummating any transaction. Seek clarification on areas that are not clear to you.
Have it at the back of your mind that potential cybercriminals are waiting to steal from you.
Therefore, you must be security conscious and keep passwords to yourself and maintain the secrecy of all your details on ethereum. Do not use public Wi-Fi. It may pose too much risk. Also, use an ad-blocker and ensure you do not accept every popup messages.
Know a bit of the law, ensure you seek counsel from tax professionals before doing any transaction.
Before completing any transaction, ensure you double-check every detail. Once the transfer is done, it may be impossible to retrieve.