For a reason, Ethereum is the second cryptocurrency on the market. It is the first platform for decentralized applications, NFT, as well as GameFi-projects. Not everyone understands how the Ethereum network is organized and what opportunities it provides to users. You can buy ETH on Alligat0r crypto aggregator website.
Ethereum: The Basics in a Nutshell
Ethereum is a blockchain protocol for dApps that run on smart contracts. A dApp can be anything-a game, an app, an investment project, etc. The ETH cryptocurrency is the exchange unit and fuel of Ethereum needed for transactions and fees.
Ethereum records all information (contracts, transactions). It can not be deleted or changed. This is the advantage of blockchain technology, which can eradicate bribery and data fraud in the long run. Ethereum is accessible to anyone and it is transparent and trustworthy.
Smart contracts in Ethereum
A smart contract is code written in its own programming language that controls the transfer of ETH between parties when a certain condition is met. That is, contracts work according to a certain script without any intermediaries. Contracts completely eliminate the risk of manipulation and simply terminate in the event of force majeure.
Gas in the Ethereum network
“Gas is a transaction fee mechanism created to support the operation of smart contracts. Gas is referred to as gwei (from the English word gwei). 1 ETH equals 1 billion gwei.
The gwei has its own value and it constantly changes against the background of ETH price changes and user activity. For example, during the price correction, the cost of gas goes down and can be no more than one dollar in dollar terms. In turn, when the ETH price rises, the cost of gas rises and can be as high as $20-30.
Based on Ethereum, it is possible to issue your own ERC-20 tokens. Each token runs on its own smart contract. Since ERC-20 tokens are tied to the Ethereum network, The commission is paid in ETH (gas). The price of all ERC-20 tokens depends on the price of ETH.
Where is the best place to buy Ethereum?
If you are ready to provide personal data (passport scans, selfies), then the best way to buy Ethereum is through exchanges. On Binance, you can buy ETH with a minimal commission. But not everyone wants to show their passport online. Such exchangers are created. For example, on the exchanger, you can convert ETH, BCH to XRP, or other cryptocurrency at current exchange rates.
Ethereum 2.0 is the most discussed topic in the cryptocommunity. The move to the PoS consensus mechanism will allow users to make instant payments with minimal fees. For now, preparations are underway for the launch of Ethereum 2.0. It should be released around mid-2022.
Ethereum 2.0 Staking
At the moment, there is an official smart deposit contract with the ability to participate in staking. However, you need to have 32 ETH in your account to do so. This is too high, so we will wait for services (pools) that will allow us to deposit 0.1 ETH and get some passive income. It’s too early to talk about full-fledged staking for retail investors until the Ethereum network goes to version 2 of the protocol.
Ethereum is a huge opportunity. Current projects for dApps are just copies of Ethereum, including Polkadot, Cardano, or Finance Smart Chain. Market participants trust Ethereum the most, regardless of how quickly it develops.It is the safest, most time-tested, and best-known project.
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