What is Ethereum and Should You Buy It?
How Does it Work?
Ethereum is a cryptocurrency powered by decentralised applications and ether.
Ethereum is one of the most famous kinds of cryptocurrency and can be easily accessed via ethereum.org or from a number of different other online trading platforms and virtual wallet services too.
The Ethereum currency is known by the symbol ETH and can be used as any other currency, whether you are looking to invest and make money from the purchase of cryptocurrency alone, or whether you are looking to spend it as a digital form of money too.
Ethereum is accepted as a form of payment online throughout the world and is a great way for people of all backgrounds and investing abilities to access cryptocurrency.
As Ethereum runs from a defi system, otherwise known as a decentralised financial system, accounts can be accessed any time of the day or night, unlike the stock market, and can be bought or sent globally at just the click of a button.
How Does Ethereum Make Money?
Ethereum makes money by allowing users to trade this cryptocurrency online without restrictions, using tamperproof blockchain networks.
Many users who purchase Ethereum may try to make money from it as with other similar forms of investments, i.e., by buying it and then holding onto it until the price increases sufficiently so that it can be sold at a profit.
Buying Ethereum actually means that traders are purchasing Ether tokens, which can also be mined in order to make more money too. The process of mining Ethereum means that your computer will solve complex computer issues in order to add further blocks to the blockchain of Ethereum.
Adding more and more blocks results in more and more Ether tokens being achieved, which can then increase the overall value of Ethereum you hold. Users can also choose to trade their Ethereum too, in a similar way to the stock market or trading in Forex.
The price of Ethereum can rise and fall very quickly, and as it can be accessed 24/7, it is important to find a trading platform that will allow you to buy and sell Ethereum with accurate charting tools and quick trade ability in order to make the most money from Ethereum.
Is Ethereum Better than Bitcoin?
Ethereum is one of the most well-known forms of cryptocurrency alongside Bitcoin, so comparisons between the two is somewhat inevitable.
However, despite their similarities, Bitcoin and Ethereum are actually very different. Currently, Bitcoin is in lower supply versus Ethereum, with a market cap of $147.3b.
Ethereum holds almost 50% less of this market cap at $84.2b, however both forms of cryptocurrency are extremely volatile and highly liquid too. Bitcoin has also been around longer than Ethereum, starting in 2009, and was created to be an alternative and fairer form of currency, a core value which Ethereum also echoes, itself being launched in 2015.
Both work as a form of digital money that does not require the services of a third party, with both Ethereum and Bitcoin both able to be sent as currency all around the world whilst being able to store their value in virtual wallets too.
ETHER SMART CONTRACTS
However, Ethereum can also work as a way to build platforms and smart contracts, something which Bitcoin does not do, and Bitcoin transactions need to be made manually, whilst Ethereum transactions can be automatically programmed.
It is a minor difference, but whilst Bitcoin transactions take minutes to complete, Ethereum transactions can be made in mere seconds. The major current difference between these two forms of digital cryptocurrency is that whilst Bitcoin has a limited supply, Ethereum does not.
Is Ethereum a Money?
Ethereum is not money in the traditional sense, however it can still be used as a valued form of online currency. Ethereum works as a smart contract system, which means it is a programme language that allows users to make transactions powered by the Ethereum blockchain.
Currently the second largest cryptocurrency in the world, just behind Bitcoin,, Ethereum can be used as a money but also used to facilitate a number of other different financial transactions too, taking its use beyond that of merely a money.
With no centralised CEO or other organisations in control of Ethereum, its uses are potentially endless. Smart contracts, which are an integral part of how Ethereum works, can be used and programmed to carry out an infinite variety of tasks, helping to create a funding base to facilitate investment into some of the world’s most cutting edge technology projects, such as driverless cars.
What are the Use Cases for Ethereum?
Ethereum can be used for a number of different purposes thanks to its smart contract benefits. Its decentralised network means that Ethereum can be easily used efficiently via the dApps marketplace to carry out a number of different financial transactions.
Ethereum can be used for web browsing, supply chain management, gaming and other financial applications too. Here are some other use cases for Ethereum –
Token Launches – Token launches are sometimes known as initial coin offerings and allow Ethereum-enabled start ups to gain further funding in a similar way to crowdfunding.
Decentralised Anonymous Organisations – One of the earliest uses for Ethereum, decentralised anonymous originations, or DAOs, allow organisations made from blockchains to be answerable only to their stakeholders, with no central overseeing authority controlling their administrative decisions.
Instead, DAOs are run by their own coded software, helping to build up funds which are then distributed among other fellows entrepreneurs.
Enterprise – Networks and software that use Ethereum for their own private purposes, such as businesses and corporations, are known colloquially as Enterprise Ethereum.
More than 200 big name companies are now part of the EEA, or Enterprise Ethereum Alliance, including Microsoft, Mastercard and J.P Morgan.
Non-Fungible Tokens – These invisible digital assets are used primarily in gaming as well as in luxury goods and art. Collectables launched as part of non-fungible tokens include the digital cat collectibles from CryptoKitties.
Other big name brands that have been attracted to experimenting with non-fungible tokens include the NBA as well as world games leader Ubisoft.
Who are the Main Competitors to Ethereum?
There are a number of different competitors and alternatives to Ethereum, with plenty of other software using the same blockchain technology. Here are a few of the most well-known competitors –
Hyperledger – Hyperledger works by using blockchain software to solve problems raised in global business transactions. Similar to Ethereum, Hyperledger uses smart contracts as well as being a blockchain platform.
IBM Blockchain – IBM is used to record digital transactions. Its goal is to create a platform that champions transparency and totally accountable payments and contracts. IBM and Ethereum are similar in their blockchain platform set-up and use of smart contracts too.
Kaleido Blockchain Business Cloud – Kaleido specialises in blockchain platforms that run cross-cloud in order to facilitate the building of hybrid and enterprise ecosystems. However, unlike Ethereum, Kaleido does not use smart contracts.
Corda – Corda is another competitor that uses smart contracts and blockchain. It is a development platform primarily used by businesses and can be used on GitHub as it is open sourced.
Amazon QLDB – Amazon have also created a competitor to Ethereum, known by its full name as Amazon Quantum Ledger Database. This QLDB has been designed to work as a verifiable log of transactions, which is run by Amazon and uses a blockchain platform.
Azure – Azure, otherwise known as Azure Blockchain Workbench, is a way for organisations to collaborate virtually on a variety of different work projects. Azure uses a cloud based platform and works like Ethereum by using smart contracts as a part of their blockchain set-up.
How Do I Buy Ethereum in Ireland?
As with most cryptocurrencies, Ethereum can be easily purchased from a number of different online trading platforms.
Ethereum can be bought, sold and traded at just the click of a button, with all transactions sent around the globe in seconds. In order to purchase Ethereum, no matter what digital trading platform you want to use, just follow these easy steps.
Step One – Head across to the buy and sell pages of whatever website or app you are using. Keep in mind you will need to step up a verified account first as well as your preferred choice of payment deposit method.
Step Two – Choose Ethereum as the currency you wish to trade.
Step Three – Enter the exact Ethereum amount you want to buy .
Step Four – Confirm the payment method you want to use.
Step Five – Review your order to makes sure that it is correct, then click buy in order to purchase your desired amount of Ethereum.