Ethereum: How It Works, Why We Use It, and How It Certifies Work
Ethereum is the virtual currency of the moment,iIncreasingly in vogue among investors and enthusiasts. This is because the coin has special characteristics that allow it to go beyond simple exchange and sale on the market. For example, Ethereum allows you to certify and protect digital works. To add to the narrative, a particular story lies behind Ethereum. So, let’s talk about it.
It all stems from a host of programmers and investors, but most of the credit for the creation of Ethereum goes to Vitalik Buterin. Interested in bitcoin and the blockchain at the age of 17, he co-founded Bitcoin Magazine and started thinking big. He envisioned a platform that went beyond the financial uses of cryptocurrencies. Buterin wrote a white paper in 2013 that detailed, through a scripting language, what Ethereum could and would become. Its strength lies in going beyond just trading virtual currencies.
With the help of other programmers and some crowdfunding, Ethereum was born. The fundraiser managed to raise over $18 million via the sale of Ether (Ethereum token). In 2015, Frontier debuted and since then the platform has grown exponentially. Since its initial offering, Ether has gone from a value of 9 euros to about €3,000 in 2021.
Similar to Bitcoin, Ethereum is an open source platform that developers can use to create cryptocurrency and Dapps (decentralized applications) using blockchain technology. The Blockchain is a decentralized ledger, connected blocks of data or digital records, maintained by a group of computers, secured with cryptography.
Each computer contains a complete record of all transactions. This way, the system doesn’t collapse if a computer were to fail. People use computers to mine or solve complex mathematical equations that confirm every transaction on the network. The blockchain network is a decentralized system, with no government controlling it. Transparency is key to allow people to trust the system, which is why the logs are open to the public.
Along with its function as a currency, the ethereum network also facilitates the creation of ‘smart contracts’.
Smart contracts function similar to any kind of real-life contracts, but run on the ethereum network, allowing us to protect and ensure the authenticity of information contained within. Ethereum is the first and most widely used platform running smart contracts. Due to the nature of the blockchain, smart contracts make it impossible for one party to counterfeit the terms of the contract in its favor.
Smart contracts not only provide legal fortitude, but also perform useful functions for programmers that need to be protected and certified.
Ethereum is also used as the foundation for other cryptocurrencies. You can find Tether, BNB and Chainlink built on Ethereum.
Ethereum is a unique cryptocurrency universe thanks to its multi-purpose software platform. Developers are already experimenting and producing Dapps for a multitude of purposes. A social network has been created that supports content creators with Ethereum and an insurance company that is based on a decentralized system.
When talking about NFTs (non-fungible tokens), you can’t-not mention Ethereum, as it is the currency used to buy and sell these unique works. Ethereum offers ERC-721 token standards, allowing NFT creators to capture the relevant information of their digital art and store them as tokens in the blockchain.
This cryptocurrency was chosen for several reasons:
Ethereum is the safest way to ensure certification and ownership of one’s work, providing benefits to the buyer and seller.
Valuart uses the Ethereum blockchain and Ether tokens to auction NFTs. In a secure way and open to everyone, it is possible to purchase valuable works of art, such as Banksy’s Spike artwork. Learn more on Valuart’s blog and stay tuned to participate in the auction.