Understanding Ethereum – General Overview
Ethereum is a network of decentralized blockchain; Ether Token is the powerhouse for Ethereum. With the help of Ethereum and Ether token, users can complete financial transactions, earn additional benefits on interest through staking. Users can store and utilize non-fungible tokens (NFTs), play games, trade cryptocurrencies and use social media, etc.
At present time Ethereum is being considered as the next step of the Internet. Ethereum is a more advance, decentralized network powered by its users. If we compare a centralized platform like apple to Ethereum, then its app store portrays web 2.0 whilst Ethereum represents web support of the next generation that is Web 3.0.
Ethereum not only supports decentralized finance (DeFi) but also decentralized exchanges (DEXs) and decentralized applications (DApps). These are general examples of what Ethereum can do.
How Does Ethereum Network Works?
Ethereum like Bitcoin is available on numerous computers because of huge user participation. These users participate as “nodes” and not as a centralized server. Because of this, the Ethereum network has a large decentralized network and high immunity to cyber attacks. The networks do not collapse because of one collapsed computer because the other computers are supporting the networks.
Every miner earns ETH while working. The fee while processing the transaction is called “Gas”. The user has to pay this transaction fee. The validation of the transaction is completed by the miner. It helps in securing the network. The actions related to the transactions are restricted for the user. It also prevents any spam in the network. The supply of ETH as a utility token is infinite. The miner rewards are in the form of Ether. The demand for Ether will always be there and inflation will not cause the asset to get devalued.
Ethereum Mining – Know The Basics
A single and decentralized system called Ethereum Virtual Machine (EVM) helps the computers to function in the Ethereum network. Every interaction must go through a verification process to update their copy. A copy is owned by each node.
The other interactions are considered transactions. They are stored in the Ethereum blockchain. These blocks are validated by each miner who acts like a digital ledger. The process of Mining and verifying transactions is called the PoW consensus method.
An individual block consists of a special 64 digit number. Miners have to find and prove with the help of their computer power that the code is unique. The proof is computer power and the miners are rewarded accordingly in ETH.
The transactions made by Ethereum are public just like blockchain. Completed blocks are broadcasted to the rest of the networks. This confirms the change and adds the block to every user’s ledger copy. These confirmed blocks cannot be corrupted. This becomes a source of history for all transactions on the network.
Ethereum provides many options and a secure network to its users, it would not be wrong to say that t does have the potential to change the internet infrastructure. So it’d be presumptuous to compare Ethereum to Bitcoin, maybe it can provide us even more.