Ethereum: a complete system, not just a digital currency!
With the great spread of digital currencies and investors’ demand for them, and with the widespread popularity of Bitcoin as a digital currency, the recently popularized Ethereum is not just a digital currency in itself, but more than that!
It is a complete system and software platform that acts as a decentralized internet and app store; That is, it is not under the control of one controlling party, although the majority of businesses and companies on the Internet are built on a central system, this system is operated by thousands of devices around the world.
Such an independent electronic system certainly needs a digital currency to meet the computational needs required to run any application or program, and this is represented by the role of the digital currency Ether (ETH).
This currency was launched in 2015 in Switzerland by its founder, Vitalik Buterin, and became available in the Arab region for the first time through the (BitOasis) platform in February 2017, thus it is just part of the Ethereum smart contract applications.
How does the system work?
It consists of an Internet browser, its own markup language, and a private payment system as well. It allows its users to create applications on a system called Blockchain, which is a distributed public ledger technology. Among the most important features of the Ethereum network are the following:
Decentralized applications (dapps)
In principle, it is similar to smartphone applications and other cloud applications, but it is hosted on the Blockchain system and is not managed by a developer or central authority, and it cannot be removed once it is placed on the Blockchain.
They are a special type of Ethereum account capable of owning the balance and sending coins, and what distinguishes them is that the user cannot control them, and therefore they are also called self-applied tokens.
Hosting cryptocurrency at ERC-20
The Ethereum network hosts thousands of other digital currencies or tokens, and these currencies include some of the most famous and largest digital currencies in the world, such as: (Chain Link), (Tether), (Shiba Inu), and others.
Ethereum and Bitcoin: Are they the same?
As the first stable digital currency, Ethereum, on the other hand, is part of the Ethereum project, and the most important differences between them are as follows:
- Both Bitcoin and Ethereum are based on Blockchain technology, which allows checking and confirming the history of each coin.
- They operate on separate protocols, which means that some transactions that may be permitted on one system may not be permitted on the other.
- Ethereum is recognized through the Ethereum network but it is not widely spread, in contrast Bitcoin cannot be used as a recognized currency in Ethereum.
- A maximum of 21 million bitcoins can be generated, but the creation of Ethereum may be endless.
- Bitcoin mining can be done using industrial mining farms, while decentralized Ethereum mining can be done by individuals and users.
What is its price against the dollar?
This currency was traded for the first time on August 7, 2015 for $2.77, then its value decreased on August 8, 2015 to $0.81, and the value remained less than $1 until January 2016.
Four years in the trading world significantly raised the value of Ethereum; In December 2020, the value of the currency amounted to 567.6 dollars, while its value on March 22, 2022 AD amounted to about 2860.64 dollars.
Should you invest in Ethereum?
There is no doubt that the cryptocurrency market is a very volatile market, so it is not always possible to be sure of profit, but since Ethereum is a popular currency, the reason for its spread may be attributed to the following:
- It is completely immune from any external interference or the presence of a third party, and this ensures the complete independence of decentralized applications, and its protection against hacking attacks.
- Eliminate any possibility of fraud, corruption or forgery, in order to adopt the principle of (Blockchain) used in the system on consensus, and any change within it must obtain full agreement.
- The entire platform is decentralized, which means there is no fixed point of failure, and this ensures that work on the system will never stop.
- The platform provides users with an Ethereum Virtual Machine (EVM), a platform for smart contracts, providing users with protection while ensuring that programs do not interfere with each other.
On the other hand, with its widespread popularity , the project is still relatively new, so the Ethereum system has developed its technological performance and has undergone several updates over the years of its development, most of which fall into the category of periodic updating for development and security purposes, such as (Homestead) and (DAO) update. and (Altair).
Experts also advise keeping an investment of less than 5% of the total storage portfolio, and investing in what can be lost, and not at the expense of important financial commitments.