What Is Ethereum? How Does It Work?

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After Bitcoin, Ethereum (ETH) is the second most popular cryptocurrency. Founded in 2015 by Vitalik Buterin and Gavin Wood, Ethereum now accounts for more than 17% of the $1.2 trillion global cryptocurrency market.

Between Ethereum and the original cryptocurrency, there are several definite distinctions. Ethereum (ETH) is meant to be much more than merely a means of exchange or a store of money, in contrast to Bitcoin (BTC). Instead, Ethereum is a blockchain-based decentralised computing network.

What Is Ethereum?

Thousands of gaming and financial apps operate on top of the Ethereum blockchain, making it, in the words of the cryptocurrency, “a worldwide, decentralised platform for money and new sorts of applications.” Even other cryptocurrency coins run on the network since it is so well-liked.

Thousands of gaming and financial apps operate on top of the Ethereum blockchain, making it, in the words of the cryptocurrency, “a worldwide, decentralised platform for money and new sorts of applications.” Even other cryptocurrency coins run on the network since it is so well-liked.

It is distributed in that every member of the Ethereum network has access to the exact same copy of this ledger, allowing them to view all previous transactions. Decentralization refers to the network not being operated or managed by a single centralised organisation but rather by all users of distributed ledgers.

Cryptography is used in blockchain transactions to safeguard the network and validate transactions.

Like Bitcoin, Ether, the native token of Ethereum, may be used to purchase and sell goods and services. But what makes Ethereum special is that users may create programmes that “run” on the blockchain in the same way that computer programmes “run” on computers. These programmes can manage intricate financial transactions or store and send personal data.