What is ethereum (ETH) (Beginner’s guide)

Ethereum(ETH) like bitcoin runs on blockchain technology, but ethereum and bitcoin are very different.

To really understand ethereum, you must understand how the internet works.

These days our personal data, passwords & financial information are stored on cloud servers owned by big companies like google, facebook, we trust them to keep our data safe (or we have to trust them), but a hacker or government can gain access to those information, meaning they can steal or change those information.

Ethereum has the aim of replacing these internet third parties with thousands of computers around the world called “nodes”.

Who created ethereum?

Ethereum(ETH) was created by Vitalik Buterin in 2014, and the purpose of ethereum is to be a platform on which smart contracts can be built & run.

How does ethereum work?

Ethereum blockchain is designed to store different types of data. This data can be accessed and used by computer programs running on the ethereum blockchain. These programs are called decentralized apps or dapps.

Any service that is centralized can be decentralized using ethereum e.g bank loans, electoral committee e.t.c.

Ethereum(ETH) can also be used to build DAO (Decentralized autonomous organizations), a DAO is a fully autonomous organization with no single leader, DAO’s are run by programming code, on a collection of smart contracts written on the ethereum blockchain.

What are smart contracts?

A smart contract is a piece of software that contains rules & regulations for negotiating the terms of a contract. Smart contracts help you exchange anything of value in a transparent, conflict-free way while avoiding the services of a middleman.

Smart contracts are self-executing, immutable, self-verifying, auto-enforcing, cost-saving, removes third parties.

What is an ether?

Most people think ether and ethereum are the same, but they are not.  Ether is the cryptocurrency that is actually the fuel of this blockchain based platform. Ether powers smart contracts, DAPPS & transactions on the ethereum blockchain.

What is ethereum mining?

Just like bitcoin mining, miners gain “ether” by solving mathematical computations, in doing so they verify transactions and add them to the public ledger.

Where can I store ethereum?

You can can store ethereum using “ethereum wallets”. Some of these wallets can store more than one type of currency, while some are made specifically for a single currency. The different type of wallets are:

1. Paper wallet
2. Mobile wallet
3. Web wallet
4. Desktop wallet
5. Hardware wallet

Where can I buy ethereum?

You can buy ethereum from exchanges, some of the best exchanges to buy ethereum in Nigeria:

1. Bitkoin Africa
2. Nairaex
3. Remitano
4. Ngexchanger
5. Luno

You can read more about buying ethereum

What are the advantages of ethereum?

1. No need for third parties.

2. Faster execution of contracts.

3. Zero downtime

4. Security

What are the disadvantages of ethereum?

Since everything about blockchain rely’s on code, this means that if the code has bugs, it automatically affects it. This means any dapp built on the email blockchain is only has good as it’s code.

If you want to know more about ethereum, here are some of the best resources found on the internet.

i. What is ethereum
ii. What is ethereum
Read my post on how to buy Bitcoin in Nigeria

Read my post on how to buy litecoin in Nigeria

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