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What is Ethereum ETH ?

what is Ethereum ETH ?

Technology enthusiasts, especially cryptocurrencies, must be familiar with the concept of blockchain networks. Like other cryptocurrencies, Ether (ETH) is also a cryptocurrency based on a blockchain technology network called Ethereum. However, what exactly is the difference between Ether and Ethereum?

Ethereum is a blockchain network created specifically by its main founder, Vitalik Buterin. Ethereum is open-source. This means that anyone can use this network concept to build anything, for example decentralized applications or other tokens. Meanwhile, Ether (ETH) is the original coin on the Ethereum network.

Ethereum also has several other terms that will relate to how this network works like the GAS network. Read more in the article What is Gas in the Ethereum Blockchain.

If linked further, this network is like the daily use of the internet network. In these networks, we will find all data such as names, passwords or passwords, personal and company information, but usually this data is only concentrated in one big place owned by certain companies such as Google, Facebook, Amazon, and others.

Along with the development of technology, the use of large places centrally or what is often called centralized, is no longer considered "safe". This is because these companies have full control over existing data. This is also prone to abuse, especially if control falls into the hands of irresponsible people.

The Ethereum network which is based on blockchain technology works with the concept of decentralization. This concept makes the data not owned by one entity, but all entities in the network and makes all entities have the same power and control. In short, in this network everyone has the same power and is not fixated on just one entity.

Who Created Ethereum

After understanding the concept of the Ethereum Blockchain network, now who is the person behind the scenes of this network? This person is Vitalik Buterin, a programmer from Toronto who is very interested in the concept of the Bitcoin Blockchain network.

Vitalik Buterin and his friends have also founded an online news website that writes articles about Bitcoin. Before finally deciding to learn Dark Wallet programming and the market. From here, he got the idea to build a decentralized platform and published his white paper in 2013. That system is called Ethereum.

What is Ether (ETH)?

As explained above, ETH is a native coin on the Ethereum network. These coins are used for gas charges when using the network. Currently, ETH is the second largest coin in the cryptocurrency industry by market cap.

ETH can be obtained in various ways. One of the easiest ways is to buy it on a cryptocurrency exchange. In Indonesia, ETH is a commodity, meaning that this coin can legally be traded / traded.

Find out more about legal crypto exchange exchanges in Indonesia here.

Not only that, ETH can also be obtained by mining. A year there are 18 million ETH that can be on the network.

How the Ethereum Blockchain Works

Actually the Ethereum blockchain network has the same basic concept as that of Bitcoin. The only difference lies in the nodes or nodes on the Ethereum network. These nodes store not only transactions related to ETH, but also store the current status of the smart contracts.



Later, every contract on the network will keep track of the most recent information from all existing applications, for example, the balance of each user, the code in it, storage space, and others.

Like bank account funds, Ethereum has an account to make a transaction. ETH is stored in a specific wallet, and can be transported to another account. The funds will be in a certain place, but have no ongoing relationship.

In this network, every transaction is executed, all (up to thousands of computers) process the transaction. Contracts are written in a specific smart contract based on a programming language that runs by 'bytecode'. The programming language will be read and executed by the EVM or Ethereum Virtual Machine. Furthermore, the existing nodes will execute the existing contract using their EVM.

This makes the Ethereum network unable (at the moment most difficult) to be manipulated. Remember all transactions will be remembered and a copy will be stored in the network node. 

what is ethereum ETH

Moreover, each node must approve the actions performed on the network. The main objective is that every existing action can be accounted for by the entities in the network.

Ethereum smart contracts

The concept of smart contracts has actually been around since 1993 ago. This concept was first initiated by computer scientist and cryptography named Nick Szabo. In his explanation of this, he describes how it works like a digital vending machine. The user can input data or values ​​into it, and in return get limited items from it.

Unlike Bitcoin which restricts language or system changes on the Bitcoin network, Ethereum opens itself up and gives developers access to create their own smart contracts or what is known as an “Autonomous Agent” with the aim of supporting a wider set of computational instructions.

Conclusion

The Ethereum Blockchain network has the same concept as the Bitcoin blockchain network, which makes it different, it has smart contracts that other developers can develop.

Ethereum also has a network native coin called Ether (ETH) which can be acquired by buying or mining.

This network also gives responsibility to all entities in carrying out and assessing a transaction. The goal of Ethereum itself is to cut off third-party services or hackers from gaining unwanted access to a user's data.

Yulina Firmansyah
Yulina Firmansyah Hi, I am a wife who really loves crypto and blockchain technology, I am a writer for this blog.

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