This article covers the following:
Ethereum is an open software platform that runs on Blockchain technology that was released in 2014. Like Bitcoin, it is decentralized - it is not owned or operated by any single entity - and distributed across a P2P network for validation of transactions.
The key function of Ethereum, however, is not to act as a currency. It is meant to provide us with a "global computer" where anyone can develop and deploy decentralized applications. To achieve this, the Network is run on 'Smart Contracts' which is a set of codified rules to facilitate transactions or exchanges of any kind. Blockchain technology allows Smart Contracts to function as intended and eliminates the possibility of any Third-Party interference allowing for a truly decentralized platform.
Ethereum is a truly exciting technology and one to keep a watch on in the coming years. Its full potential is yet to be realized and there is much to be discovered about its utility. We would like to leave it up to your own imagination to help develop this groundbreaking technology.
The Ethereum Network is fuelled by a "virtual token" called Ether.
Ether is required to pay the Ethereum network in order to execute any Smart Contracts and hence, has an intrinsic value. Ether can be traded for fiat money and even accepted as a form of payment as a result. This aspect of Ethereum has an ever-increasing number of people trading Ether Tokens as a form of currency earning it the label of being a Cryptocurrency.
Please note that it is commonplace to label or simply identify Ether Tokens as Ethereum. There is no right or wrong here, however, kindly note that the when you purchase any coins you are purchasing the Ether Tokens.
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