Did you know that more than 200 million people around the world are already using blockchain technology? While it hasn’t been around for long, the explosive growth of the cryptocurrency business in the past decade has spurred the growth of blockchain technology.
Read on to learn more about the Ethereum blockchain!
What Is Ethereum Blockchain?
Blockchain technology is a shared ledger that allows for recording transactions and tracking assets. A transaction through blockchain technology can involve any asset of value. Each transaction involving a specific asset is tracked as a block of data, and as an asset passes on through other transactions, the blocks connect together, or form a chain.
Ethereum is a blockchain platform that sells its own cryptocurrency called ether (ETH). It is an open-source platform, which allows users to develop applications that can be purchased with ETH.
What Are dApps?
Decentralized applications, or dApps, use Ethereum Blockchain for their data storage. Once you create a dApp, you can not destroy it.
Another major advantage over traditional apps is that dApps are generated over a decentralized network, as opposed to a centralized server. Centralized servers are vulnerable to shutdowns or hackings, whereas decentralized networks are more secure.
How Do You Buy ETH?
You have multiple online options when it comes to buying Ethereum. These can vary with the country in which you reside. You can choose from one of the following:
Centralized exchanges are third-party businesses that facilitate the trade of cryptocurrencies. The exchange remains in control of the purchase until you transfer it.
This type of exchange is peer-to-peer and eliminates the middle man. Facilitation of the transaction happens through code referred to as smart contracts. These codes only run when a transaction meets predetermined conditions, making them secure.
If you’re more comfortable with traditional online buying, you may want to use a wallet. Wallets allow you to buy crypto through a bank account or card payment. If you use a wallet, you must be careful with who has access to it.
What Precautions Do I Need to Take With Ethereum?
As with any investment, you should understand the risks associated with buying. Ethereum is vulnerable to the same setbacks that affect any cryptocurrency.
The risk of investing in cryptocurrency is high. First, there are no federal regulations as with traditional currencies. Additionally, the price can be volatile if there isn’t an asset of tangible value attached to the crypto.
While decentralized platforms like Ethereum are more secure than online banking platforms, the risk of a cyber attack can never be fully eliminated. Several breaches have cost investors millions but improved security infrastructures may prevent future attacks.
Are You Ready to Buy Ethereum?
Now that you know what Ethereum blockchain is and the crypto that it sells, what are you waiting for? You can choose how you wish to purchase and maybe even develop a dApp to make money. Always treat this investment like you would any other and consider the risks associated with it.
Read our blog to learn more about the amazing possibilities of cryptocurrencies!