Understand how Ethereum, the world's second-largest cryptocurrency in terms of market capitalisation, works and how it has come to stand out so much.
Since its creation in 2014 by Russian-Canadian programmer Vitalik Buterin, the Ethereum cryptocurrency has been a transformative force in the world of decentralised finance.
Unlike Bitcoin, which laid the foundations for digital currencies, Ethereum (ETH) goes further, offering a flexible and open environment for the creation of smart contracts and decentralised applications.
With ETH , the vision of a world where transactions take place without the need for intermediaries is getting closer, promoting autonomy and transparency in economic interactions.
This cryptocurrency shares many similarities with Bitcoin, including its decentralised nature and its open-source base. However, its mission goes beyond just being a form of digital money, Ethereum seeks to create an environment where smart contracts can be executed autonomously, without the need to rely on third parties.
This unique functionality enables a wide range of applications, from automated contractual agreements to decentralised voting systems and crowdfunding platforms.
By enabling the creation of smart contracts and decentralised applications, ETH has unleashed a wave of innovation and experimentation in the world of financial technology. Companies and developers are actively exploring the possibilities offered by the Ethereum platform, creating new business models and interaction networks that challenge traditional structures.
The disruptive potential of crypto has not gone unnoticed by investors and cryptocurrency enthusiasts.
Since its launch, the value of ETH has experienced a meteoric rise, driven by demand for its unique functionality and the opportunities offered by the platform.
However, this rapid valorisation is not without its challenges and criticisms, including concerns about scalability, security and governance.
Despite the challenges, this digital currency continues to be a dominant force in the cryptocurrency ecosystem and a source of inspiration for technological innovation. Its ability to create a truly decentralised and autonomous environment for digital transactions and interactions places it at the centre of a revolution that is redefining the foundations of the economy and society.
Applicability
Roughly speaking, we could say that Ethereum functions as a "digital registry office", because the technology of this cryptocurrency operates as a account book which is reliable, digital, immutable and less susceptible to errors, since its smart contracts are executed exactly as they were programmed, without any possibility of fraud, censorship or third-party interference.
Its invulnerability to hackers has opened up possibilities for storing private information ranging from medical records to voting systems.
Is Ethereum better than Bitcoin?
As we mentioned earlier, unlike Bitcoin, Ethereum was not created to support a cryptocurrency. ETH was created to function as a sort of internal currency for applications built on its own blockchain. It is correct to say that this cryptocurrency has broader ambitions, since its main objective is to be a platform for all kinds of applications that can store information securely.
Like Bitcoin, ETH is obtained primarily through mining.
Where to buy Ethereum?
With the popularisation of cryptocurrencies, there are many brokers where you can buy your first fractions of ETH. The best known brokers are Binance (international) and Mercado Bitcoin (national).
We'll soon be writing an article comparing the biggest cryptocurrency brokers in Brazil and around the world.
Should I buy ETH?
This is a personal decision and depends very much on your investor profile. It's worth remembering that Ethereum is a volatile and very high-risk investment, but one with great return potential. If you are an investor with a greater appetite for risk, ETH could be a good option for exposure to the alternative investment market.
Always remember that diversification and risk management help your portfolio grow more safely and with less risk. Read more about risk management here.
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