Saturday, April 20, 2024

Ethereum Explained in 3 Minutes

 


Origins of Ethereum 

Have you ever wondered what lies beyond Bitcoin in the vast world of cryptocurrencies? Today, let's dive into Ethereum, a blockchain revolution that's transforming the digital landscape., Ethereum was proposed in late 2013 by Vitalik Buterin, a programmer and cryptocurrency researcher. Recognizing the limitations of Bitcoin's scripting language, Buterin envisioned a platform that could support decentralized applications. In 2014, Ethereum's development was crowdfunded, and it went live on July 30, 2015, with 72 million pre-mined coins distributed to early supporters. 

Ethereum's Blockchain 

Unlike Bitcoin, Ethereum's blockchain is designed to be a versatile platform for building and deploying decentralized applications. The Ethereum blockchain consists of interconnected blocks, each containing a list of transactions. These transactions are executed using a virtual machine called the Ethereum Virtual Machine (EVM), which can run code of arbitrary algorithmic complexity. 

Understanding Gas Fees 

Gas fees in Ethereum are the transaction fees users pay to compensate for the computational energy required to process and validate transactions on the network. These fees are denominated in "gwei," a small fraction of ETH. Gas fees fluctuate based on network demand and transaction complexity. During periods of high activity, fees can soar, impacting usability for smaller transactions.


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