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In the digital financial world, the Bitcoin has reigned as the go-to cryptocurrency for years, but now a promising alternative emerges, ready to challenge its supremacy: the Ethereum. You may be asking yourself, “What is Ethereum?”. More than just a digital currency, this cryptocurrency is a revolutionary platform that is shaping the future of decentralized finance. In this text, we will understand a little more about this currency, an innovative force on the scene.
What is Ethereum?
O Ethereum is a decentralized platform based on blockchain which enables the creation and execution of smart contracts, as well as the development of a variety of decentralized applications (DApps). Essentially, currency is a global infrastructure that eliminates the need for intermediaries in digital transactions, promoting autonomy, transparency and security.
Through its native currency, the Ether (ETH), the Ethereum provides incentives for network participants, including developers and miners, who validate and maintain the integrity of the blockchain. The flexibility and programmability of the Ethereum enable the construction of a wide range of decentralized solutions, from financial systems to games and digital identities.
History
The history of Ethereum begins with its creator, Vitalik Buterin, who became interested in cryptocurrencies in 2011 and co-founded the Bitcoin Magazine. Observing the limitations of the Bitcoin, Buterin proposed the idea of a platform that could run smart contracts – computer programs that automatically execute and verify agreements without the need for intermediaries.
In 2013, Buterin published the white paper do Ethereum, outlining a vision for a decentralized platform with a complete programming language. His innovative proposal suggested a blockchain which would not only record financial transactions but also execute these smart contracts.
To turn Buterin's vision into reality, the Ethereum Foundation, a non-profit organization, was established in 2014 in Switzerland. In July 2014, the foundation launched a crowdfunding campaign (crowdsale) selling “Ether” to raise funds. The campaign was a success, raising over $18 million in Bitcoin, one of the largest crowdfunding fundraisers at the time.
The net Ethereum was officially launched on July 30, 2015. This initial release provided a basic platform for developers to begin building and testing their smart contracts and dApps. Since its launch, the Ethereum has undergone several significant upgrades known as hard forks, to improve network security, functionality and efficiency. Currently, the network is in what is known as the Ethereum 2.0, when the currency received a series of updates that changed the network's consensus mechanism Proof of Work (PoW) for Proof of Stake (PoS). This effort aimed to improve the scalability, security and sustainability of the network.
Technology
O Ethereum it's a platform blockchain which goes beyond traditional cryptocurrency transaction functions, offering a robust environment for the creation and execution of smart contracts and decentralized applications (dApps).
The great innovation of Ethereum is Ethereum Virtual Machine (EVM), a Turing-complete runtime environment that runs smart contracts. A EVM allows any developer to write and implement code on blockchain Ethereum, facilitating the creation of dApps. Smart contracts are written in programming languages like Solidity e Vyper, and are compiled into bytecode that the EVM can execute.
Smart contracts are self-executing programs that automatically process transactions when certain conditions are met. For example, a smart contract can be used to create an automatic payment system that releases funds when a service is completed, without the need for intermediaries.
To execute smart contracts and transactions on the network Ethereum, you must pay a fee called gas. O gas is a unit that measures the amount of computational work required to process a transaction or execute a contract. The price of gas is determined by network supply and demand and is paid in Ether (ETH).
Uses and applications
O Ethereum revolutionized the world of cryptocurrencies by significantly expanding the possibilities beyond simple financial transactions. Its ability to execute smart contracts and support decentralized applications (dApps) opened up a range of innovative and varied uses:
Non-fungible tokens (NFTs)
Non-Fungible Tokens (NFTs) are another revolutionary application of Ethereum. NFTs are digital representations of unique assets such as art, music, videos, and game items. Unlike traditional cryptocurrencies, which are fungible and can be exchanged with each other, NFTs They have unique characteristics and are indivisible.
Decentralized apps (dApps)
The ecosystem of dApps No. Ethereum is vast and diverse, ranging from games to social networks and digital markets. Games based on blockchain allow players to own, buy and sell game assets in the form of NFTs. Furthermore, decentralized social networks offer an alternative to centralized platforms, promoting greater privacy and control over user data.
Digital identity and certification
Finally, the Ethereum it is also being explored for digital identity and certification solutions. Smart contracts can be used to create verifiable digital identities, which can be used to authenticate across platforms without the need to reveal sensitive information. Additionally, academic and professional certificates can be issued and verified at blockchain, reducing fraud and increasing trust.
Challenges and limitations
Although the Ethereum offers a wide range of applications, it also faces several challenges and limitations that need to be addressed to ensure its sustainability and continued growth.
One of the biggest challenges of Ethereum is centralization. Ethereum 2.0's Proof of Stake (PoS) gives more capacity to those who have more ETH tokens. As there is a concentration of these tokens in a few wallets, it is possible for the network to be more centralized compared to others.
Additionally, developing and interacting with smart contracts in Ethereum requires advanced technical skills. The programming language Solidity, used to write smart contracts, is not widely known outside of the software developer community. blockchain. This creates a barrier to entry for new developers and limits the diversity of applications that can be created.
The Future of Ethereum
the future of Ethereum looks promising, especially with the implementation of Ethereum 2.0, which solves many of the scalability and energy efficiency problems. With the transition to Proof of Stake, the network becomes increasingly faster, safer and more accessible. Furthermore, the continuous innovation and adoption of DeFi, NFTs e dApps suggest that the Ethereum will continue to be a dominant force in the cryptocurrency space.
The capacity of Ethereum ability to adapt and evolve in response to market challenges and needs will be crucial in determining whether it can truly outperform Bitcoin in terms of adoption and value. With a robust community of developers and users, and a solid technological foundation, Ethereum is well positioned to continue to innovate and lead the way in digital transformation.
Ethereum vs Bitcoin: which is better?
Bitcoin e Ethereum are the two largest and best-known cryptocurrencies in the world, but each was created with different objectives and functionalities. Comparing them directly is not simple, as both have unique characteristics and purposes that attract different types of users and investors.
O Bitcoin was created in 2009 by Satoshi Nakamoto as a decentralized digital currency. Its main objective is to be a store of value and an alternative payment system, similar to “digital gold”. Using the consensus mechanism Proof of Work (PoW), Bitcoin It is secure but faces scalability limitations, only processing around 7 transactions per second (TPS). It is seen as a hedge against inflation, with growing institutional acceptance.
Already Ethereum goes beyond financial transactions. It is a flexible platform that supports smart contracts and decentralized applications (dApps). Ether (ETH), its native cryptocurrency, is essential for paying transaction fees and executing contracts on the network, making it vital to the ecosystem DeFi e NFTs. The community Bitcoin is conservative, focused on security and stability, while the community Ethereum It is innovative, driving improvements and new technological solutions.
There is no definitive answer as to which is better, Bitcoin ou Ethereum, as this depends on individual goals and needs. However, whether the focus is on creating and using decentralized applications or engaging with the ecosystem DeFi e NFTs, Ethereum offers a more versatile and feature-rich platform.
Where to buy Ethereum: discover MoonPay
Now that you understand what Ethereum is, let's see where to buy Ethereum using the Moonpay.
- Visit the website of Moonpay em https://www.moonpay.com/pt-br/buy/eth
- Enter the amount in ETH or reais you want to buy
- Enter your Ethereum wallet address or create a MoonPay account
- Check your email and basic information and choose your payment method
- Complete the purchase and receive your Ethereum
What are your expectations for the future of Ethereum? Leave it in the comments!
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Source: Moonpay, InfoMoney, Foxbit.
Text proofread by: Pedro Bomfim
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