Ethereum what is - FOGWHY


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Sunday, February 2, 2020

Ethereum what is

For years, electronic currencies have developed strongly and spread to impose themselves on the world of finance and business in a way that made experts expect that electronic currencies will be the currencies of the near future. Although Bitcoin is the first, most widespread, and highest-valued currency in the cryptocurrencies market, it is not the only currency nowadays, but there are many other options available as a good number of new electronic currencies have emerged that They operate on the same principle, with differences in details and the size of the popularity these coins have.

Ethereum, which is the second digital currency in the world in terms of popularity, size and value, follows Bitcoin in market value so far, and the Ethereum coin has grown very well in the recent period, making its market value exceed the $ 18 billion. Here we write to you about the most important facts related to the currency of Ethereum and what you need to have knowledge of in a way that will benefit you whenever you decide to enter the digital currency market.

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The origins of Ethereum
Ethereum was launched for the first time in August 2015 to be added to the basket of digital currencies (Cryptocurrencies), which is competing for Bitcoin, which is topping the scene so far, and since its launch, it has grown and developed very quickly, making its market price rise from $ 2.8 when it was launched to reach 200 dollars in the recent period, at a time when many other digital currencies have not succeeded in achieving the same popularity and spread, despite their launch at about the same time.

How Ethereum works
Whether it is Ethereum, Bitcoin, or other digital currencies, the digital currency system is based on a single database called the blockchain, regardless of the currency difference. With regard to the Ethereum currency, it is defined as a decentralized digital information system that is done through electronic computers linked to each other and spread all over the world, these computers use applications through which many orders related to smart contracts are executed in a very, very complex way, and it requires a lot of Information protocols are similar to the conclusion of common financial contracts, but they are implemented after subjecting to many requirements and requirements in a way that is difficult to simulate or fraud. All of these digital protocols are not subject to any authority or government at all, and no party is able to control the mining or exchange of Ethereum like other currencies.

Ether and the decentralized Ethereum system
It is true that everyone calls Ethereum the word electronic currency, but the truth is that the electronic currency associated with this decentralized system is Ether, which is a programmatic process launched by the huge decentralized system known as Ethereum.

Comparison between Ethereum and Bitcoin
We cannot consider Ethereum as a currency like Bitcoin, even if Ethereum produces its Ether currency, Ethereum in its basic content works to serve the users of the platform by providing an Ethereum wallet that people use for the applications they are developing. As for Bitcoin, it is a clear digital currency that is being prepared to replace traditional currencies.

The supply of Ethereum is unlimited: The availability of Ethereum is limitless and is not affected by the use of individuals, while the supply of Bitcoin is limited and affected by the coin makers themselves, and it is assumed that the manufacture of Bitcoin will end by the year 2140.
Ethereum trades more quickly: Bitcoin exchanges take up to 10 minutes to complete the trade process, while Ethereum is processed in just 15 seconds.
Ownership of Ethereum: While Bitcoin is the property of the individuals who manufacture it, especially the first of them, the Ethereum currency is financed by collective parties, which is considered a matter that serves Ethereum financiers and makers in the near term (expected within 5 years).
Ether recognition indicators
The huge decentralized system known as Ethereum is available to everyone through highly complex protocols and algorithms, through which Ether is exchanged and new currencies are produced from it. As for the ether currency itself, it rises and falls on the Internet according to the increase in demand for it or the decline in 

demand. In the past year and the current year, the urgency has increased on the need to recognize these electronic currencies as a kind of official currency, and it has already happened and many authorities have recognized them as official currencies such as Microsoft, Intel and some international banks, in addition to many other institutions that are increasing in number every day. day.

Factors affecting the value of the Ether coin or the Ethereum system
Certainly, Ethereum is the primary decentralized system through which the coin is produced (Ether)), but a very large sector of people tend to use Ethereum as a name for the currency when talking about currency to the extent that many sites specialized in currency trading use the name Ethereum, not ether, perhaps for the convenience of traders.

But regardless of the naming of the currency, what is meant remains one thing whose value is affected by many factors that drive the market value of the currency to rise or fall. Here are the most important of these factors:

The market value of Ether increases as the number of agencies that recognize and approve it as a type of parameter increases.
Also, the more applications that rely on this currency, the greater its market value.
The strength of the decentralized system, which guarantees safety and the inability of any party to drive

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