In the last 5-7 years, the digital currency and decentralization world has exploded. What was once a theory in the 1990s is now real and growing at an incredible pace. For most people, it may be growing too fast to keep up with and can be incredibly confusing. So what is Ethereum? Ethereum is a platform where anyone can use cryptocurrency and decentralized finance to make purchases or move funds around. It relies on the number of users and a system called the blockchain to make the system as secure as possible.
Keep reading to find out what exactly Ethereum is, the cryptocurrency the platform uses, as well as some other questions you might have.
Ethereum is both a cryptocurrency and a platform where you can use that cryptocurrency. The cryptocurrency is often called Ethereum, after the platform, but is originally called Ether, ETH, or E.
It was founded and developed in 2013 and 2014 and went live on July 30th, 2015 due to the work of the founders and crowdfunding. Currently, the cryptocurrency is second only to Bitcoin. The platform itself is huge and is one of the leading blockchains to buy NFTs. The Ethereum platform was designed to be a decentralized finance (also known as DeFi) application.
Another purpose of the Ethereum platform is to decentralize more than just finance. Many online websites such as Facebook, Google, and even Apple all collect information on their users every day. These are kept in one or a couple of small locations (which is what makes it centralized) and if someone manages to hack into these locations, millions of people could have their personal information released.
Decentralized Finance (DeFi) is a fairly new technology that allows users to move and store money without the need for a bank.
This is attractive for many users of cryptocurrency as there are no fees that are commonly associated with a bank. The money is still secured, but in a digital wallet, instead of a physical bank. Anyone that has the internet can use the website instantly as well, without having to wait on approval and credit checks.
Transfers of funds can happen on the same day, often only taking a few minutes instead of days. There is a lot of work that needs to happen with DeFi, including scams as the whole system is unregulated. This makes using DeFi scary in some aspects as there is no way to regulate or investigate any issues that occur over borders, apps, and protocols.
This is especially worrying when one of the major goals of DeFi is to use a Peer to Peer loan system (P2P). Instead of using a loan from a big company or a bank, you can make a deal with someone who has the funds to offer you a loan and come to an agreement on loan repayments. This is good in theory, but without any way to follow through, people could fall prey to plenty of scams.
A blockchain is a database shared across computer networks. Instead of information being stored in a few safe locations, it is shared everywhere. The key benefit of using a blockchain is that it allows for records, and trust without the need to involve a third party.
This helps prevent any one person or party from controlling the system. Instead, everyone controls the same amount of the system. There is also no way to delete the data, and once it has been put into the blockchain, it is impossible to remove. Everything is permanently recorded and viewable. That means the whole system and every bit of data are viewable for anyone to see, but it is unable to be changed.
At first, it may seem that blockchain is less secure. Like with large corporations, all user information is still stored. Instead of one or a couple of large servers, blockchain instead stores the information in everyone’s server. This makes it easier to find.
At least in theory. However, the more people that use the server, the more secure it is. This is because all of the information is spread out across thousands of servers, and it makes it hard to weed through information to get what someone would need to take advantage of someone. A person’s Social Security number, for example, could be on a server in Thailand, while their name may be on a server in South America, surrounded by thousands of other names or pieces of information.
As long as the system is used by a lot of people, it is a very secure system. But it does depend on the use. The fewer people that are using the cryptocurrency website, the less information is floating through the blockchain, and the fewer servers there are. For example, if only two people ever used the server, then only two sets of information are present, making it incredibly easy to get the information. This is one of the issues with dAPPs, as when an app first starts, there may be few users and then the app is far less secure than most common apps.
In keeping with the theme of digital platforms, cryptocurrency is a digital currency that is decentralized and doesn’t depend on banks or the government to maintain and secure it. It is completely virtual and secure due to the blockchain.
This is nice, as you eliminate a lot of fees that come with banks and the transfer system is a lot faster. However, banks are secured, meaning that if something happens, your money up to a certain amount is still yours and must be given back to you from the bank.
This is not the case with cryptocurrency. If something were to happen to the server, the cryptocurrency would simply be gone. It is very unlikely that the server or the platform itself is to fail, especially anytime soon, but it is always something to keep in mind. Banks may have fees and take a long time to use, but they do secure your money.
What is Mining City?
Mining City is a platform that provides mining plans, giving users access to hash power and mining rewards. The idea for the platform was conceived in October 2019 by Greg Rogowski, the brand owner of Mining City and the CEO of Prophetek.
Prophetek is the company behind the Mining City platform. It is based in Cyprus, a country with clearer cryptocurrency regulations than many other European countries.
A technological process, combining low electricity costs with storage and miner improvements, known as “Smart Mining,” became an effective way to obtain BTC.
Is Mining City Legit?
Mining City provides real hash power for users. Mining City also leaves banned markets and takes a compliant approach to new laws and regulations, adjusting to global markets.
There have been many widespread scams and attempts to defraud cryptocurrency customers over the past several years, which has prompted increased regulation and efforts by responsible companies to deter fraudulent activities and scams.
The cryptocurrency and crypto mining industries are new and gradually become more and more regulated markets. As new regulations go into effect, reputable market players, like Mining City adjust. This may mean leaving markets where crypto-related activities face new bans. That may also mean having to adjust products or services to stay in line with new laws.
You can follow Mining City’s official social media portals on Facebook, Instagram, Telegram, YouTube, and Twitter to observe what Mining City undertakes to adjust to new regulations and requirements and to give Mining City your support in their efforts to become fully compliant.
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