While the Ethereum network is building on top of itself, our cities are too!

A Small Introduction to Ethereum & Other Coins

What is Ethereum?

So… What are Smart Contracts?

The open source refers to the users having complete access to the blockchain and thus are able to build onto it. Many new tokens have been created on the ethereum network. This blockchain enables programs and tokens to run on its network, just like a computer program runs on a computer. This ability is something that bitcoin does not have, bitcoin only serves as a currency, while ethereum has the ability to run systems and uphold tokens or smart contracts.what ethereum so valuable is that there is more value to it other than currency. The possibilities are quite literally, endless.

Many cryptocurrencies are mirroring or copying existing coins, how do you know which one’s unique?

How does Ethereum compares to other cryptocurrencies?

They might only boom for a short time and when they have reached their height and drop, they might never come back up again. These cryptocurrencies are referred to as “shitcoins”. There is a disconnect between price and purpose, the purpose serves as a backer of the currencies and in the case for shitcoins there is nothing backing the currencies. Any cryptocurrency that is not bitcoin is usually referred to as an altcoin. So this included ethereum, monero, libra, litecoin, and more.

What is Ethereum 2.0?

Mining takes a huge amount of energy and therefore isn’t very energy efficient, this is why they want to improve their sustainability. The “London” update came out the first week of August, 2021. This includes protocol upgrades, one being EIP-1559. The previous mining incentive was that miners would receive a “first price auction” when validating transactions. Now with EIP-1559 the miners do not get the base fee anymore. This base fee is going to be used by the network. With Ethereum 2.0 proof of work will no longer be taking place, but rather proof of stake. Proof of stake refers to a validation process that is more energy efficient. The stakes will need a group of participants who are basically investing in the proofing process. Depending on the proportion of the stake you invest, you will receive new coins. Each staker will be rewarded with Ether and when the proof is done the network will update the completed transaction.

Basically this update would make it expensive for outside parties to interfere with the network, this makes it more secure from outside attacks. Another benefit is that the proof of stake is chosen by an algorithm and whichever computer is chosen, will be rewarded in currency for validating the transaction. With stake ownership is Ethereum moving in a more decentralized direction and making the interface more safe and easy to use or giving people with more Ether validator access unequal to participants with less Ether?

Written & photos by Rosalie Mosner.

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