Ethereum is a peer-to-peer cryptographic network that operates in a decentralized and autonomous way, specific smart contracts with the security and reliability of the blockchain consensus mechanism.
The smart contracts or Dapps (Decentralized Applications) are autonomous computer programs running in the Ethernet blockchain that allow fast cash transactions around the world. In terms of operation and safety, the Blockchain offers significant advantages, such as:
-)Downtime, as long as the Blockchain is running, the DAPP’s can not be stopped
-)Censorship, Ethereum is a story of independence and democracy, freedom is the essence of the project.
-)Fraud, all the information relating to a smart contracts (transactions, computer codes) are accessible to anyone on Etherscan.io
-)Third-party intervention, the code of a smart contract can not be modified once published.
Ethereum is the second largest decentralized crypto-currency with a market capitalization of more than 1 billion euros. This Blockchain network uses a unit of account called “Ether” as a means of payment for these contracts. Its monogram, used by trading platforms like Kraken, Poloniex , etc is “ETH”.
The issuance of new Ethers is only possible by Block Mining, a process by which transactions are checked, recorded and secured in the Blockchain. The software rewards the miners at the rate of 5 ETH per block mined. This is, on an average every 15 seconds, an issue of 10 million new Ethers per year. The system is currently under development and will be modified in the course of 2017.
Miners must be remunerated for each action that can be carried out in a smart contract, whether it is a simple transfer of Ether between two accounts or the execution of lines of the code of a contract. This remuneration is made in Ether and then called “GAS” because they are infinitesimal. Each operation on the chain of Ethereum blocks costs gas which corresponds to the effort to be provided to treat this operation.
The user chooses the price he is willing to pay,that is, if he pays below the average price, the execution of his contract will take much longer since all the more profitable transactions are executed in priority.
Ultimately, Ethereum offers infinite development prospects and new markets to build and conquer. This new technology is only at the beginning of its history and although it has suffered some setbacks (hack, hardfock), Ethereum nevertheless remains a marvelous adventure that deserves to be followed.
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The article was contributed by author Bhargavi Sayee and modified by author at KryptoMoney.com for quality purpose.
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What is Ethereum? Explained By KryptoMoney.com
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