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Introduction to Ethereum

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An introduction to Ethereum (ETH) that describes what it is, how it works and why it's different from Bitcoin.

The first differentiation that needs to be made is between Ethereum the platform, and Ether (ETH) the currency.

Ethereum is the open-source, blockchain platform itself.

Ethereum can be thought of as a base layer of the new decentralised internet, on top of which decentralised applications (dApps) can run.

Ether (ETH) is the native cryptocurrency used by the Ethereum network.

While many people will use the words Ethereum and Ether interchangeably, it’s important that this introduction makes a differentiation between the two.

So when you’re buying ETH cryptocurrency from an exchange, you’re actually buying Ether which can then be used on the Ethereum platform.

Introduction to Ethereum

Ethereum was founded by Vitalik Buterin and Gavin Wood in 2013.

While Vitaly "Vitalik" Buterin, the Russian-Canadian front-man for Ethereum was actually a co-founder, he’s definitely the face of the project.

Vitalik became involved in cryptocurrency quite early on the scene, co-founding Bitcoin Magazine in 2011 before making Ethereum a reality by eventually launching the network in 2015.

As we briefly mentioned above, the Ethereum platform is the base on which dApps are built, hosting what are known as smart contracts.

Smart contracts are a set of code that carries out a list of instructions, running immutably on the blockchain.

Think of smart contracts as code replacing a human third party required to act as an intermediary or verify something on an application.

They’re what gives Ethereum its power and sets it apart from Bitcoin and other purely money driven cryptocurrencies.

While Bitcoin is simply a payments network that is used to transfer value, Ethereum is a base layer for the entire decentralised internet to be built on top of.

Let’s use this Ethereum guide to explore how the platform works and why it’s such a game-changer.

Best of probabilities to you.



Direct from the desk of Dane Williams.

Why not leave a comment and share your thoughts on what Ethereum is, within the comments section below? All comments that add something to the discussion will be upvoted.

This Ethereum blog is exclusive to leofinance.io.

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