(Ethereum: the mistake that most people make by ignoring this technology.)
What is ethereum.?
Ethereum is a blockchain created in 2015 by programmer Vitalik Buterin.
Unlike Bitcoin, which was primarily made to be digital money, Ethereum was created to be a programmable platform.
In other words: ๐ It is not just for sending and receiving money
๐ Used to create smart contracts
๐ Used to run decentralized applications
๐ Used to create tokens, NFTs, and complete financial systems
The currency of Ethereum is called Ether (ETH), and it is used to pay fees and move the network.
What are smart contracts?
Smart contracts are programs that execute orders automatically.
Simple example: You program a contract to pay someone when a condition is met.
No need for a lawyer, bank, or intermediary.
This opens doors to:
Loans without banks
Automatic insurances
Instant financial exchanges
Decentralized games and metaverses.
Is Ethereum infinite? Does it cause inflation?
This is a common question.
Before 2022, Ethereum actually had infinite issuance.
But after the update called The Merge, the network changed to Proof of Stake, and today:
๐ฅ part of the fees are burned
๐ง the issuance has decreased significantly
๐ in various periods ETH becomes deflationary
In other words: the supply grows much less than before, and sometimes even decreases.