ETHEREUM FOR BEGINNERS
This is a short post about Ethereum for beginners.
You may have heard about Ethereum after learning about bitcoin.
Ethereum, like Bitcoin, is a cryptocurrency.
However, Bitcoin is more like digital gold. It’s best characterized as a store of value.
Right now, you shouldn’t pay anyone with Bitcoin. In fact, you shouldn’t really do anything with Bitcoin except hold it. Because the fact of the matter is, Bitcoin’s value is just going to keep increasing, so why spend it?
Anyways, this isn’t meant to be a post about Bitcoin.
Let’s talk about Ethereum.
Ethereum has more use cases than bitcoin does.
You can view ethereum as digital cash.
It’s easier to pay for things with cash than to pay with Gold.
But that’s not all Ethereum is good for.
You see, ethereum is like a tool that people can build with.
You can build entire companies on top of the ethereum network.
Ethereum is useful is because it creates smart contracts.
Smart contracts are like regular contracts, except faster and completely decentralized.
Meaning that the two parties don’t even need to know each other in order to have a smart contract created between them.
Right now there are hundreds of decentralized applications (dapps) running on the ethereum network.
One popular dapp is Uniswap. This platform allows users to swap one cryptocurrency for another cryptocurrency. Just the same way that you could swap your dollar for a stock on robinhood.
Except in Uniswap’s case, you’re swapping with someone you don’t even know on the other end of a smart contract.
And in Robinhood’s case, you’re swapping with some corporate clearing house who can choose whether or not to accept a trade with you depending on the time of day or how much money their masters are losing.
But thats beside the point.
There are many other use cases for Ethereum.
I won’t get into them right now, but I probably will on a future blog.
To put it simply, Ethereum allows you to have safe transactions with anyone in the world as long as you both have an internet connection.
There’s no middle man, and you don’t even have to sign your name on a dotted line.
This is why I love ethereum and I think it even has more potential than bitcoin.
Reminder, this is not financial advice, and I’m not a financial advisor. All content shared on this blog is personal opinion only. Do your own research before investing in cryptocurrency.