Ethereum
$3,848.58 -6.32%
ETH · 191w

I wrote this article in the hopes of explaining Ethereum to the average person who is looking to understand it on a basic level. would love to hear your thoughts. thanks

Ethereum And ICOs Explained

Ethereum is a cryptocurrency, like bitcoin, but the two differ drastically. In this article, I will break down Ethereum, how it’s used, and how it differs from Bitcoin. I will explain each aspect in a simple way, free of confusing jargon.

What is Ethereum?

Ethereum is both a cryptocurrency and a platform. The idea behind Ethereum is that you can build and design applications (apps) much like the ones on your phone. These are referred to as Dapps, which is short for Decentralized applications. The Ethereum coin which is called Ether is used to pay for gas in order to run these decentralized applications (Dapps). Just like a car Ethereum needs something to run on. The idea here is that Ethereum is creating a new and improved internet (web 3.0). A decentralized internet where each user pays for the computing power they use. As you might recall in my last articles explaining Blockchain and Bitcoin, Bitcoin uses a blockchain where miners solve complex problems in order for a transaction to take place. The miner gets paid a fraction for solving the problem and using computing power. Computing power costs money so when someone uses a Dapp they pay a small amount of Ethereum in order to run it. Even If you are just sending Ethereum from one person to another you will notice a gas price that will go to the miner. The price of gas you decide on paying helps the miners rank the transaction for when it should be placed in the blockchain. Think of it as the ranking goes to the highest bidder which gives the miners more incentive to execute your transaction. Additionally, miners can ignore transactions if the gas price is too low. If you do not have enough Ethereum to pay for the gas the transaction will be considered invalid. In addition, the gas price is deducted from the account sending the transaction. There is also a limit to how much gas a single transaction can use and each transaction has a different price of gas. The ...

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