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Why Is Ethereum Called The New Age Digital Currency?

  • While Using Ethereum Users Don’t Need To Trust Any Third Party Application.
  • Ethereum is also the platform for all Decentralized Autonomous Organizations.

Today technological advancements are happening every day. This has resulted in the birth of newer technologies. Blockchain technology is also one such technology that has the capability of revolutionizing the current financial system. Because it is more secure than any other technology. It also eliminated censorship which is a major threat to centralized systems.

The concept of blockchain and decentralized ecosystem arrived from Bitcoin. Satoshi Nakamoto, the pseudonymous founder of Bitcoin, explained in detail in his whitepaper how blockchain works and why it has the capabilities to revolutionize the financial system. 

What is Ethereum?

Ethereum is the new and most popular innovation in the decentralized ecosystem. Because it really played a key role in giving the shape and new director to this decentralized ecosystem. Because it emerged as a platform for the decentralized apps to be built on. Earlier it was released just as a cryptocurrency. But now it has become a platform of many decentralized apps. 

It allows decentralized communities to build applications on it. Because for a decentralized app to work it needs its own blockchain, its own community, and the whole infrastructure. Which is a complicated thing. It is not possible for every decentralized application to build everything from scratch. So with the help of Ethereum, they built their project on it which is very easy.

Ethereum even has its own language called solidity with the help of this language developers can write code and smart contracts that will be used to run the project. They can even release their own token on Ethereum These tokens can follow the ERC-20 token standard on Ethereum.

What are the benefits of using Ethereum?

  • The user is the owner

When we use banks for transactions we need to trust them with our money and assets. And if a bank goes bankrupt there are high chances of losing all the funds. Also, the centralized system is based on the trust system. Because they need to trust them. But this is not the case with cryptocurrencies because instead of proof-of-trust, blockchains work on the principle of proof-of-work and Proof-of-ownership. A network like Ethereum is also not owned by any single entity it is owned and run by the whole.

  • Peer-to-Peer Payments

The user can send their Ethereum to anyone without any intermediary. All the transactions are peer-to-peer. This means all the transactions occurred directly from one person to another. They are only verified by validators who ensure there is no double spending on transactions. To ensure the security of the network. 

  • Available in flexible amounts

The current price of Ethereum is equivalent to $1,682.10 which might seem a lot. For using it as a currency. But interestingly this cryptocurrency is highly divisible. Ethereum can be divided into 18 decimal places. Hence, they can transact as little as 0.000000000000000001 ETH if they want. 

  • A Financial System for Everyone

This is a major issue with the current financial system that millions of people around the world are unable to open a bank account. Because of various reasons but ethereum does not discriminate between anyone. It allows everyone to send and receive money without even revealing their true identity. Not only money, they can also trade a variety of items on the Ethereum network. The art they own can be traded on this network without any issues. Because the user can create NFT of their art.

Tags: Ethereum
Radhe

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