Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middleman or counterparty risk.
The project was bootstrapped via an ether presale in August 2014 by fans all around the world. It is developed by the Ethereum Foundation, a Swiss non-profit, with contributions from great minds across the globe.
Ethereum is not just a platform but also a programming language (Turing complete) running on a blockchain that helps developers to build and publish distributed applications. There are two types of accounts in Ethereum: normal accounts, holding ether that can only be moved by code execution; and contracts, which hold code with associated data that can be used to create contracts or send transactions.
A contract has its own address and can receive ether like any other account. When executed, a contract performs some operation on other accounts and triggers another contract if needed. One example is an insurance contract that sends money to the beneficiary after the policyholder dies; another is a crowdsale contract that collects money until it reaches its goal, releasing the funds to the project owner if successful or refunding the backers if not.
NOTE: WARNING: Ethereum is not backed by any asset. Investing in Ethereum carries a significant level of risk and investors should be aware of this before investing. As with any investment, there is no guarantee of success or return on investment and Ethereum’s value may go up or down significantly. Investors should consult with a qualified professional financial advisor before making any investment decisions.
A contract can also be used to implement multi-signature wallets or enforce complex rules like financial regulations. We will see more exciting applications as Ethereum grows.
What is ether?
Ether is a cryptocurrency whose blockchain is generated by the Ethereum platform. It can be transferred between accounts and used to compensate participant mining nodes for computations performed.
[1] Ether can be bought on cryptocurrency exchanges.[2] It is also awarded as part of block rewards for successfully validating new blocks on the Ethereum blockchain (a process known as mining).
Is Ethereum Asset Backed?
The answer to this question is still up for debate. Some people believe that Ethereum is asset backed because it can be used to represent ownership of property or send transactions.
Others believe that it is not asset backed because it is not backed by any physical commodities.
8 Related Question Answers Found
When it comes to digital assets, there is a lot of talk about liquidity. But what does that really mean? When it comes to Ethereum, is it a liquid asset?
When it comes to cryptocurrency, there are a lot of different options out there. You’ve got Bitcoin, Litecoin, Ethereum, and a slew of others. So, what’s the difference between them?
This is a question that has been on the minds of many investors recently. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent ownership of property.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.
When it comes to cryptocurrency, there are a lot of options to choose from. You have Bitcoin, Litecoin, Ethereum, and a host of others. So, which one is the best to invest in?
Ethereum, the second-largest cryptocurrency by market capitalization, is no longer the hot investment it once was. The price of Ethereum has fallen sharply from its all-time high of over $1,400 in January 2018 to less than $120 today. But despite this sharp decline, Ethereum is still one of the most popular cryptocurrencies and many people believe it has a bright future.
Is Ethereum a good investment? This is a question that many people are asking as the cryptocurrency market continues to grow. With so many different cryptocurrencies to choose from, it can be difficult to know which ones are worth investing in.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ether, the native cryptocurrency of Ethereum, is mined through a Proof of Work consensus algorithm (Ethereum plans to move to Proof of Stake in the future). Ethereum’s smart contracts can be used to create decentralized applications (dApps) that run on the Ethereum blockchain.
