Because this blog is new and many of my followers may be beginner to intermediate level learners of the stock market, I want to deep dive into many of my favorite stocks — giving you a clear definition of what each stock is and why I believe it can work in your favor moving forward.
Today we’re going to take a look at Ethereum.
Ethereum is both a cryptocurrency and a decentralized computing platform. It’s essentially a technology that lets you send cryptocurrency to anyone for a small fee. On top of that, Ethereum developers are able to use the platform to develop decentralized applications (DAPPS) called Ethereum tokens.
The primary difference between Ethereum and any other cryptocurrency is that it’s not just a currency, it’s an environment.
Anyone can take advantage of the blockchain technology to build their own projects and DAPPS. This is a very important distinction because this very fact illuminates the true scope of all that is possible in Ethereum.
Many experts have used an analogy of the internet to understand the role of Ethereum, thinking of Ethereum like the internet and all the DAPPS as websites that run in it.
It’s massive. Ethereum is the first smart contract platform.
You may be asking yourself, what is a smart contract platform?
Smart contracts are computer programs that are designed to automatically execute legally relevant actions and events according to the contact established by the particular application. Ethereum is the second biggest cryptocurrency by market capitalization, and it is considered a second generation cryptocurrency because of the incorporation of smart contracts.
Ethereum can scale to millions of people regardless of background or location. Because of the use of smart contracts Ethereum allows people to access banking capabilities for those who can’t afford to put their money in a traditional bank. Ethereum is building an economy based on value and not surveillance.
At the heart of Ethereum is something called Decentralized finance (commonly referred to as DeFi). By definition DeFi is an experimental form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks, and instead utilizes smart contracts on blockchains, the most common being Ethereum.
One of the major appeals of it is that it acts as a peer to peer network, you can move money to individuals without ever having to going through a third party.
Ethereum is censorship- resistant The decentralization makes it so that nobody can stop one person from using Ethereum.
Etherum is a major player in the cryptocurrency markets and will continue to reach new heights in the near and distant future.
