What is Ethereum? [Everything You Need to Know]

Updated: Apr 15

With an overwhelming majority of people opening their eyes to the benefits of crypto currencies, you have probably heard about Ethereum in one way or another. But what is Ethereum? Is it simply another crypto coin that could be here today and gone tomorrow?

On the contrary, Ethereum is the blockchain technology that was developed to compete with Bitcoin, the original blockchain that operates on the “Proof of Work” system where Bitcoins are mined.

What is Ethereum?

Ethereum, on the other hand, processes transactions and smart contracts using a “Proof of Stake” system, which drastically reduces electricity and fees associated with operations on the chain.

Ethereum Explained

Ethereum is a technology which stores value, but also allows the universe of Decentralized Finance or DE-FI’s, to live and function. Unlike Bitcoin, Ethereum goes far beyond the storing of value. Once you own some ETH, the digital crypto currency that powers Ethereum, you get access to DAPs, blockchain nodes, and smart contracts.

Anyone who has internet access can easily access the Ethereum blockchain to send, receive, or store money. Decentralizing this process opens the door to anyone in the world being able to access these services without prejudice.

You don’t need to give up your personal information to use Ethereum or any of the applications built upon it.

what is Ethereum

Ethereum is a fairer system, which is open-sourced by design. All you need is the internet and an online crypto wallet you can get for free.

One of the most powerful tools available on Ethereum are Non-Fungible Tokens or NFTs. These NFT's allow creators the ability to digitalize their artwork, or anything else. Many popular NFT collections are sprouting up everyday and most run completely on the Ethereum blockchain.

This digital art or program can be sold or leased to users for a profit. Creators can receive ETH for selling use of their art, or access to some amazing digital assets through NFTs.

Is Ethereum a Safe Investment?

Many investment gurus are saying that blockchain technology is the future. Fortune 500 companies have invested heavily in Bitcoin, and Ethereum (ETH). Many huge companies have invested their own money building platforms for their business upon the Ethereum blockchain.

Ethereum levels the playing field for everyone involved. Yes, people with loads of money will own loads of crypto currency, including Ethereum. However, never in human history has decentralization become a reality like it has with Bitcoin, Ethereum and the DE-FI network.

Remember, Ethereum is twofold because it’s a safe and reliable way to store value, i.e. ETH coins, but because it is also an advanced technology you can build futuristic apps and smart contracts upon Ethereum’s network, via nodes.

Think of it like this, anyone can have an Ethereum wallet without producing a shred of identification. They can send value such as ETH anywhere around the world, 24-hours per day, without restrictions or banking oversight.

Ethereum is resistant to inflation as well, since a finite amount of ETH will ever exist, and those who own it take part in automatically producing more until the maximum is hit.

This is called the Proof of Stake model that awards owning Ethereum, opposed to mining it like Bitcoin’s Proof of Work system. Ethereum's ledger is secured by validators who are people that own ETH and wish to be apart of the Ethereum Proof of Steak, the nest evolution of decentralized finance.

The Ethereum model is secure and structured for infinite growth and maximum accessibility to everyone. All transactions are recorded on a public ledger that simultaneously updates every few minutes on thousands of computers within the network.

Plus, the value of Ethereum has seen exponential growth since its inception back in 2015.

So, YES, Ethereum is a good and safe investment so far…

How Do You Store Ethereum Coins?

When you own Ethereum (ETH), or Bitcoin, or any crypto currencies for that matter, you should store them offline in a COLD WALLET like a Trezor, or the Ledger device. That way, no one will know what you have, or be able to access your crypto coins and/or steal them from you.

You may also consider storing your crypto coins in a hot wallet like those found in online exchanges. These wallets are user friendly and can be accessed with a click or two.

However, if you own a significant amount of Ethereum, Bitcoin, or any crypto coins, you should not store them online where hackers can get into your wallets and accounts.

Many people have been taken for all their crypto coins by storing them online within hot wallets. So, buyer beware, and don’t say we didn’t warn you first!

Wrapping This Up!

Recently, more people have been looking into Ethereum and crypto currencies than ever before. The crypto coin industry is new and emerging tech that cannot be ignored anymore. In fact, smart people are capitalizing on its steady growth. As more people enter the crypto currency world, the value will continue to go up even more.

With politics playing a heavy role in today’s fiat money, it is no wonder crypto is becoming such a popular alternative to centralized banking and all its problems and corruption.

Just remember that educating yourself about the crypto coins you want to invest in beforehand, will save you headaches and possibly your money, as well. Research everything online and seek professional guidance if you want to get serious about investing in Ethereum or any other crypto coins today.


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