The world of cryptocurrencies is increasingly advanced. There are many people and companies that now bet on making their transactions with this type of virtual currency that could be even more secure than the same physical money that is issued by banks. If you do not know well about this topic, I invite you to continue reading so that you can learn a little more.
What is ethereum?
Most people who know little cryptocurrency only relate to bitcoin, but the reality is that although bitcoin was the first to emerge, today there are many more that are also worth noting and one of them is the ether that belongs to the ethereum protocol.
Although if we wanted to go to a more technical definition we could say that ethereum is a blockchain protocol that was conceived with the idea of improving some things of bitcoin technology, among them the possibility of setting withdrawal limits, generating financial contracts, maintaining custody over the blockchain (chain of transactions), among other things that make it a very secure protocol and ether in a very reliable cryptocurrency.
The emergence of ethereum: how is a cryptocurrency born?
The ether (the coins of ethereum) are really a series of distributed applications that can make intelligent contracts between different users. This is what happened with the ethereum protocol, which owes its origin to the developer Vitalik Buterin, who started working on this platform in July 2014 to finally publish it on July 30, 2015.
Vitalik is a young man of Russian origin who resides in Canada. His math skills made him stand out as an outstanding child at school, so he quickly moved on to more advanced classes. He used to be a very active online video game player, until they changed some features of his favorite video game Minecraft (a popular open source game from Microsoft), which bothered him a lot and he decided to leave it and from there he took a certain distrust towards the centralized systems, it is then when he begins his approach to the world of the blockchain and consequently, to that of the cryptocurrencies.
Knowing bitcoin as a decentralized system, it started to interest him, so he looked for ways to improve this technology and that’s when he started working on the ethereum protocol, which incorporates some things that the bitcoin blockchain did not contemplate.
What are the smart contracts on which ethereum is based?
As for any type of business there is a contract in which there are two parties that establish a series of conditions to achieve a specific asset: a property, a service or any other type of operation in which an intermediary is required , as for example a notary, so that guarantee that the contract will be fulfilled. If the contract is not fulfilled by any of the parties there is usually a clause that establishes a penalty.
In the case of smart contracts they have all the elements of a paper contract: two parties involved, compliance conditions and an intermediary (which in this case is a computer program), the difference is that this contract has no clauses for non-compliance because they are always fulfilled.
Smart contracts are the future, but they are also part of the present right now, thanks to technologies such as blockchain and ethereum, physical intermediaries (people) are no longer required to carry out transactions since everything works through programming codes, that is, , computer programs, and the response is generated in real time, that is, it is not necessary to wait a long time for the results of the contract to be obtained, but, on the contrary, when the conditions are met, an immediate response is obtained.
There is no way to violate an intelligent contract because, given in real time, simply or is fulfilled or there is no transaction. Ethereum protocols then guarantee this type of operations, so that users can trust this cryptocurrency.
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