Ethereum, developed by Mr. Vitalik Buterin is a new software platform.
The virtual currency used on this platform is also called Ethereum (ETH).
While Ethereum is currently using a Proof of Work (abbreviated as PoW) algorithm for the issuance of currency to miners, there is a possibility of moving to Proof of Stake (PoS) where the difficulty of mining is adjusted based on the amount of that currency the miner possesses as well as the amount of time that it has been held.
Features of Ethereum
Implementation of smart contracts
The primary feature of Ethereum is to record the contents of a contract on a blockchain and to automatically execute it on the settlement date. These types of contracts are called smart contracts.
Since Bitcoin cannot execute smart contracts, it can only record simple transactions such as "3 BTC paid to John Doe."
On the other hand, Ethereum records transactions which are executed by smart contracts such as "pay 3 ETH from my account to John Doe in 1 year." One year later, the "pay 3 ETH" transaction is automatically executed through a smart contract. In addition to finance, smart contracts are also used for goods trading as well as real estate transactions.
Distributed applications (DApps) can be built by using smart contracts on the Ethereum platform.
DApps are applications that are run without a central administrator such as a company or bank.
Data management is distributed among all participants using the DApp, allowing everyone to participate in decision-making and updates.
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