Ethereum just like Bitcoin is a decentralised currency otherwise knowned as a cryptocurrency. The system enables payments to be sent between users without passing through a central authority, such as a bank or payment gateway. It is created and held electronically. Ethereum aren't printed, like dollars or euros - they're produced by computers all around the world, using free software.
So what’s is the difference between Ethereum and your other flat currencies (Euro,USD,etc)?
1 - Decentralization
Ethereum's most important characteristic is that it is decentralized. No single institution controls the Ethereum network. It is maintained by a group of volunteer coders, and run by an open network of dedicated computers spread around the world. This attracts individuals and groups that are uncomfortable with the control that banks or government institutions have over their money.
Ethereum solves the "double spending problem" of electronic currencies (in which digital assets can easily be copied and re-used) through an ingenious combination of cryptography and economic incentives. In electronic fiat currencies, this function is fulfilled by banks, which gives them control over the traditional system. With Ethereum, the integrity of the transactions is maintained by a distributed and open network, owned by no-one.
2 - Immutability
Ethereum transactions cannot be reversed, unlike electronic fiat transactions.
This is because there is no central "adjudicator" that can say "ok, return the money." If a transaction is recorded on the network, and if more than an hour has passed, it is impossible to modify.
While this may disquiet some, it does mean that any transaction on the Ethereum network cannot be tampered with.
3 - Trade can be done anonymously
Transactions done through cryptocurrency are untraceable as only your wallet address will be displayed on the block chain, while your identity and details are not. This is a great breakthrough as your privacy will be secured, there wont be any third party that will be able to "stalk" your transactions.
Thank you
I hope you liked this article,
If you do,please consider to upvote this post : )
