Ethereum

About Ethereum

Ethereum is a decentralized platform that enables the creation of smart contracts and decentralized applications (dApps). Unlike Bitcoin, which primarily functions as a digital currency, Ethereum is designed to be a flexible platform for various types of applications. The cryptocurrency used on the platform is called Ether (ETH).

How do Ether and Ethereum work?

Ethereum uses a blockchain to store transactions and applications. Smart contracts, which run on the network, are self-executing contracts with conditions written in code. These contracts enable secure and automated transactions without intermediaries.

Ether is the native cryptocurrency used to pay transaction fees and to incentivize network participants. The term gas refers to the amount of computational power required to execute a transaction. The gas fee is paid in Ether and varies depending on network congestion.

After the upgrade to Ethereum 2.0 in 2022, the network transitioned from Proof of Work (PoW) to Proof of Stake (PoS). This means that users who want to validate transactions stake their Ether as a deposit, which reduces energy consumption and increases the network’s capacity.

How is Ethereum used?

Ethereum has a wide range of use cases. Some of the most popular include:

• Decentralized Finance (DeFi): Financial services without traditional intermediaries.
• Non-fungible tokens (NFTs): Unique digital assets that can be collected, sold, or used in games.
• Game transactions: Use of cryptocurrency in games for purchases or rewards.
• Initial Coin Offerings (ICOs): Project funding through the sale of tokens to investors.
• Decentralized applications (dApps): Applications that run without central control and are resistant to censorship.

Differences between Ether and other cryptocurrencies

A clear difference between Ether and Bitcoin is that Ether does not have a maximum supply. Up to 18 million Ether can be created every year, while Bitcoin is capped at a total of 21 million coins.
Ether was launched through an Initial Coin Offering (ICO), where investors could buy Ether in exchange for capital to fund the development project. This is similar to how companies sell shares in an Initial Public Offering (IPO).

Practical tips for beginners

• Use a secure wallet: Hardware wallets offer better security but may be less practical for daily use.
• Track gas fees: Use a gas tracker to check current fees before making transactions.
• Keep learning: The Ethereum network is constantly evolving. Make sure to follow reliable sources to stay updated.

BTCX – your partner in cryptocurrency

At BTCX, we offer a secure and user-friendly platform to buy and sell Ether (ETH). With Swedish support and competitive fees, we are the obvious choice for both beginners and advanced users.
Want to buy or sell Ether? You can contact our OTC department here.