Ethereum News

NFT Dragons Will Land on Ethereum

Disclaimer: The text below is an advertorial article that was not written by Cryptonews.com journalists.It’s a phenomenon that Vitalik Buterin, the co-founder of Ethereum, had

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Ethereum (ETH)

Ethereum is changing the internet. To understand Ethereum we first have to look at how the internet works now.

When you give out your name, address, or any personal information online it is stored on a computer system. These computer systems, called servers are mostly operated by big companies like Facebook, Microsoft, or Google. They run these servers on behalf of the companies you do business with online. This is where Ethereum comes in.

Instead of using a big company’s server, Ethereum allows internet programs to be run and made on many private computers, all run by volunteers around the world. It’s a decentralized network.

Ethereum is changing the internet because it is not controlled by any one person, government, or company. Ethereum’s goal is a ‘World Computer’, a network of many computers that is run by the community of people who use it. It’s taking control away from big tech companies and putting it in the hands of the users. No permission is needed and anyone can make and run new internet programs that aren’t controlled by any one source. These programs are called decentralized applications, (d)Apps.

Decentralized applications work automatically, without the third party middlemen, using Smart Contracts. Smart Contracts turn agreed upon rules into computer code and then these rules are enforced automatically. Once the rules have been set and agreed to no-one can change them. What’s great about this is that none of the users have to trust each other, they can trust the smart contract because it acts on its own and does exactly what it was programmed to do.

A lot of Ethereum applications and smart contracts revolve around the exchange of money and because Ethereum is totally digital it needs its own digital payment system. All payments on the Ethereum network use its own cryptocurrency called Ether. Because Ether is a digital currency it can be ‘stored’ inside any Smart Contract’s code. This is how Smart Contracts can send and receive money automatically.

Ether is also used to pay everyone who runs Ethereum’s decentralized system on their computers. This helps pay for hardware and electricity. Ether also helps secure the Ethereum network. (d)Apps have to pay a small fee every time they run and use the network. This stops people from making destructive apps that run repeatedly and slow down the system. This Ether fee called ‘gas’ because it fuels Ethereum’s applications, makes running bad programs too expensive.

Ethereum’s blockchain and Smart Contract technology are what make Ethereum so valuable and so revolutionary. Total strangers can transfer value (like money) and use applications without any trust and without a costly third party. It’s a new, exciting technology that has the potential to change our world and it’s just getting started.

Ethereum News

Ethereum Cofounder Reveals How Radical Upgrade Could Challenge Bitcoin For Crypto Price Dominance (forbes.com, March 12, 2021)

Ethereum Miners Are Likely to Accept EIP-1559 Activation – Analysts (cryptonews.com, February 24, 2021)

Ethereum records a new high at above $2,000 (investing.com, February 20, 2021)

Switzerland’s ‘Crypto Valley’ Has Started Accepting Bitcoin, Ether for Tax Payments (coindesk.com, February 18, 2021)

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