In recent years, cryptocurrency news seems to be the topic of the day. People can scarcely watch the morning news without hearing about the rise or fall of some of the world’s most valuable cryptocurrencies, which include Bitcoin and Ethereum. Although most might be familiar with Bitcoin, there will likely be many who are still wondering what on Earth Ethereum is. Some might be surprised to learn that cryptocurrencies do different things, and there will be different applications for most of them. The same is true for Ethereum and although it is the second-highest crypto in the world, it differs from Bitcoin in a few ways.
There is no doubt that Ethereum can still be used for purchasing and selling in the same way that Bitcoin can. This means that Ethereum is accepted at many online casinos, you can also access sites here, which shows that Ethereum is certainly popular with many people. However, there is a crucial misconception that most people hold when talking about Ethereum. Some believe that Ethereum is just another digital currency when it is in fact a platform that is powered by blockchain technology, though admittedly Ethereum is best known for its cryptocurrency.
What is Ethereum?
Like most other cryptocurrencies, it can be incredibly difficult to get a good understanding of Ethereum as the technology is still new and complex. To put it simply, the platform supports Ether – the cryptocurrency itself – in addition to a network of decentralised apps which are called dApps. It is dApps and Ethereum’s use of smart contracts that enable it to stand out from the rest and they are leading reasons why Ethereum is second in market value only to Bitcoin as of January 2022.
How does Ethereum work?
Ethereum works very much in the same way that Bitcoin does too. Many different computers all over the world will have access to the blockchain network, where the status of the blockchain is kept and maintained. New blocks are added to the blockchain when Ethereum transactions are processed or when smart contracts are executed for dApps.
The reason why Ethereum is so secure is because of the decentralised nature of blockchains. They are not in control of any one person, instead, the blockchain only exists on a vast network of world computers. As the network needs majority agreement to change the blockchain, the platform can be considered safe as it is highly unlikely anyone would ever amass the computing power to change the blockchain.
Why is it valuable?
Ethereum is held in high regard due to its security – people enjoy making anonymous transactions and they enjoy having access to money that can’t be easily stolen or is subject to fraud. In addition to this, the Ethereum platform supports more than just its native applications and crypto. Those who invest will find that they can even use rival cryptocurrencies as a means of payment on the Ethereum platform.
There is no doubt that Bitcoin is the most popular cryptocurrency right now, but those who are backing Ethereum to one day change the whole scene might know a thing or two.
