What is Ethereum
ETHEREUM
What is Ethereum
Ethereum is actually a Blockchain platform that uses the “Smart Contract” functionality. It is actually a system of distributed devices that share workload to process information. Hence, mutual working and issues of interference, downtime, censorship or fraud don’t come into play!
Ethereum
Vitalik Buterin invented this system back in 2013 and can be used to codify just about anything. This cryptocurrency also finds its use in the voting, domain names and financial sectors etc.
To sum up what is ethereum, it is an intellectual property-software processor that runs applications over the ethereum blockchain.
Ethereum Explained
How Ethereum works
The working of Ethereum is relatively simple. It can be explained conveniently if we understand the concept of centralization and decentralization of applications.
The conventional system of processing is the centralized system of processing, or the client server models. In these models, a server is responsible for processing the instructions and the clients (users) gain access to the information after the server finishes processing it.
Centralized VS Decentralized Processing
The conventional system of processing is the centralized system of processing, or the client server models.
In these models, a server is responsible for processing the instructions and the clients (users) gain access to the information after the server finishes processing it.
This creates an isolated, silo-like channel of processing the information. To me and you, it would seem that the server is hiding the execution of the instructions from us. Also, data sharing becomes harder as a single device has to accommodate all of the users for the data and application.
At this point, we still haven’t thought what will happen if the server crashes. Obviously, the whole system of application is also supposed to go down!
Hence, the horrors associated with the processing applications in a centralized system are huge. So, how about we implement a system, where everyone is processing the application together?
So, a peer-to-peer system comes into play!
Basically, it is a system where many individual PCs combine to process an application. This method is convenient as it eliminates all the disadvantages in the centralized models. The result would be an uncontrolled application with no potential disruption, just like the internet!
Ethereum and Blockchain
The concept of having small workstations spread all around the World is an impossible feat, considering the diversity all across the World. But thanks to the ethereum blockchain, all of it becomes possible.
In a nutshell, Ethereum manipulates the system of Blockchain to replicate the necessary data and reach an agreement. This agreement is compensated by apps and developers and as a result of it, the data remains private and decentralized.
As mentioned before, the main essence of ethereum lies within the ethereum blockchain based software processing.
BUYING ETHEREUM
HOW TO BUY ETHEREUM
t this point, you must have acknowledged that how good of a cryptocurrency ethereum is! But the main issue still haunts our heads. Where to buy this crypto-silver?
Friends! There is not a single answer to this question. There are a variety of ways, using which we can get Ethereum. One of the most convenient ways is the use of an ethereum exchange, where a user goes to a popular ethereum exchange to convert cash into coins.
The Best Way: Using Ethereum Exchanges
One of the most convenient ways is the use of an ethereum exchange, where a user goes to a popular ethereum exchange to convert cash into coins.
To buy using ethereum exchanges, simply follow these steps:
Go to an ethereum exchange (Coinbase, cex.io, Coinhouse to mention a few)
Create an account and add a payment method (Credit Card or Bank Account etc.)
Go to Ethereum/Ether buying and selling
Choose the amount of Ethereum you want to buy
Complete the payment process and get the amount transferred to your wallet
Now, before you head out to an ethereum exchange, make sure you have an understanding of the below:
You have to keep an ethereum wallet in place!
After that, you have to keep a lookout for the ethereum price. There are times when the tide is high and people are making use of this rather high ethereum price.
At those times, be a little patient until the next opportunity of grabbing a good chunk arises. Keep in mind that slow and steady wins the race. Who knows that in some time, you might get a better ethereum price and things might get a little decent for you?
Using Individual Sellers
You can also buy ethereum from individual sellers. Marketplaces like LocalEthereum allow individuals to interact for buying and selling ethereum. So, if you are someone who wants to connect to a legit person but not a company, then this is your thing!
In this mode of trading, the process remains mostly the same, except the person on the other hand is an individual contributor and not an ethereum exchange.
Through Exchanging Coins
Another easy ways to get ethereum is through any altcoin or bitcoin. You just have to change your coins into ethereum via platforms like Changelly. The entire process would not take more than thirty minutes, and the process is very clean and intuitive.
This method is suitable for avoiding extra fees while buying the crypto from ethereum exchanges.
Buying Ethereum In NZ
What You Need to Buy Ethereum?
This is another question that we have secretly answered in the above content. However, if you are just looking at us to cover this topic specifically, then let’s have a look at it.
Ethereum Wallet
An ethereum wallet is software that is used to store the cryptocurrency ethereum. There are both software and hardware wallets for this purpose. This software/hardware will hold the currency in your wallet and secure it from potential threats.
Now, the question comes about the nature of the ethereum wallets. Which wallet is suitable for us and why. For the beginners, who don’t have a lot of ethereum, even software wallets can do the job. These wallets are mostly free but are also less secure.
On the other hand, hardware wallets are costly. However, the security they provide is state-of-the art.
Credit/Debit Cards or Bank Account
This is another necessary thing you would need. Of course, there is no concept of buying if you don’t have modes to funnel in cash. And for that purpose, credit/debit cards are strongly required.
Trusted Prospects
Always use the trusted prospects for buying and selling ethereum. Even a wallet can’t help you out if the person on the other hand is a thief. So, keep clean and healthy contacts that could benefit you with fresh ethereum prices and good business.
MINING ETHEREUM
Mining Rig (For Ethereum Mining Only)
It is a specialized system with GPUs and processors, customized to process the contents of blockchain. As a result of processing the data on the blockchain in a process known as ethereum mining, you will get Ethereum as a reward.
The Ethereum mining is another interesting process that gives ethereum as a reward of successfully mining the blockchain, just like Bitcoins.
This is a system that uses proof-of-work systems where the system will accept the process you have done on your devices (PC, mining rigs etc.). Mining on PC won’t be profitable (or payable at all!), however a dedicated GPU can earn high profits and some real rewards for you.
WHAT YOU REALLY NEED TO KNOW
The Blockchain technology is a wonder! Although, commonly associated with the Bitcoin, some only associate Bitcoins with the Blockchain. However, as amazing as it gets, there are hundreds of other applications that use the blockchain technology.
Therefore, we would not be exaggerating if we said that Bitcoin is one of the several hundred applications that use the Blockchain technology.
Interestingly, there is another application of Blockchain that is just as interesting as the Bitcoin if not any better. It is the Ethereum!
