What is Ethereum ? – Practical uses of Ethereum

Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. It is open access to digital money and data-friendly services for everyone – no matter your background or location. It’s a community-built technology behind the cryptocurrency ether (ETH).

What’s an Ethereum wallet?

Ethereum wallets are applications that let you interact with your Ethereum account. Think of it as an internet banking app – without the bank. Your wallet lets you read your balance, send transactions, and connect to applications. You need a wallet to send funds and manage your ETH.

Your wallet is only a tool for managing your Ethereum account. That means you can swap wallet providers at any time. Many wallets also let you manage several Ethereum accounts from one application.

Types of wallet

  • Physical hardware wallets that let you keep your crypto offline – very secure.
  • Mobile applications that make your funds accessible from anywhere
  • Web wallets that let you interact with your account via a web browser
  • Desktop applications if you prefer to manage your funds via macOS, Windows, or Linux.

Practical uses

Ethereum allows you to move money, or make agreements, directly with someone else. You don’t need to go through intermediary companies.

Here are 5 practical uses of Ethereum:

1. It can be used in the healthcare system to securely store and share patient information.
2. Smart contracts can be used to make risk-free, direct transactions.
3. It can be used to improve the current election polling system by making it more transparent and secure.
4. It can be used as a decentralized data storage facility.
5. It can be used to build decentralized apps (DAPPS).

Interesting Facts

Here are 3 interesting facts about Ethereum:

1. Programmers of Ethereum created a custom programming language called ‘Solidity’.
2. Unlike other cryptocurrencies, Ethereum’s currency ‘Ether’ doesn’t have a maximum number of coins. This makes it an inflationary currency.
3. Ether mining was originally based on the Proof-of-Work mining principle, but developers have since planned to switch over to Proof-of-Stake in the future.

Criticisms 

Ethereum faces the same criticisms that all cryptocurrency platforms face:

  • Cryptocurrencies may or may not be a bubble about to burst (again). This debate has been going on since at least 2017, a year during which Bitcoin’s value seesawed between about $20,000 and about $3,000.
  • Each of these networks is eating up a vast amount of energy. Cryptocurrency miners, in particular, are devoting a huge amount of computing power to the process of validating transactions. 

Is Ethereum Better Than Bitcoin?

Unlike the Bitcoin blockchain, the Etherium blockchain was not created to support a cryptocurrency. The Ether cryptocurrency was created to provide an in-house currency for applications built on the Etherium blockchain.

In other words, Etherium has wider ambitions. It wants to be a platform for all kinds of applications that can store information safely.

Despite their differences, the two are the creators of virtual currencies that have become rivals in the investing world. And virtual currencies are just that: They are coins that have no physical existence but are represented by a string of code that can be exchanged at a price agreed upon by a buyer and a seller.

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