What is Ethereum? Everything you need to know.

What is Ethereum?

Before we start diving in the world of Ethereum make sure you have read our article ‘What is Bitcoin – everything  you need to know.’  since Bitcoin is the basis of Ethereum. 

Ethereum is a decentralised blockchain platform, created by Vitalik Buterin in 2014. 

Just like Bitcoin, Ethereum’s blockchain is a public database where the transactional history is saved, and anyone can view it. The data is stored forever and every new information increases the size of the blockchain constantly. 

The Ethereum blockchain is essentially an upgraded version of Bitcoin Blockchain. It allows any user with minimal computing skills for developing and executing their decentralised applications on the blockchain. Ethereum’s mission is to truly decentralise the Internet. 

The cryptocurrency generated by Ethereum miners is called Ether. There are over 260,000 different cryptocurrencies in the Ethereum platform, including 3 of the top 10 crypto by market capitalisation: Tether, Binance Coin and Ethereum itself 

How Ethereum works?

The Ethereum platform has its own language called Solidity. This language is used for the creations of Smart Contracts. Smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way avoiding the service of a middleman. 

Like many other cryptocurrencies, trading Ether can be highly profitable and has had a long history of delivering huge ROIs for investors. 

Ether transactions are completely transparent and bundled into ‘blocks’, each block being concentrated with its previous blocks. Before the transaction can be generated, it must be validated by a process called mining. In mining a group of so-called ‘nodes’ apply their computing power to perform complex mathematical tasks. Many miners around the world compete with each other to create and validate a block. Every time someone solves these tasks he is rewarded with 2 Ethers (ETH). 

How to Buy Ethereum?

There are a number of ways to buy ether. For example, you can purchase it directly from another individual in person or over the web. You can also try to locate a crypto ATM near you. However, many find that it is easiest to purchase it through an exchange. Coinbase, Kraken, Bitstamp, Gemini, Binance, and Bitfinex, all of these exchanges offer Ethereum. 

Once you have decided on a trading platform that fits your needs then the next step is to open an account. This process is similar to opening an account with a brokerage platform. You will need to provide your name, address, social security number, specified forms of identification, and more. Once you are confident with a site, the account opening process can usually be done pretty quickly. 

You’ll next need to deposit currency into your account. For fiat currency platforms this can be relatively easy after verification of your payment information. Simply add money through your bank account or debit card on file. 

With a verified account and money deposited into that account, you’ll be able to begin purchasing ethereum and other cryptocurrencies via the exchange. Each exchange has an interface that works somewhat differently but be prepared to confirm transactions and then allow for processing time, which can also depend on the total number of transactions requested.

Jeton supports Ethereum along with the major cryptocurrencies like Bitcoin and Litecoin. Learn how to desposit and withdraw cryptocurrency with your Jeton Wallet account.