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Matt’s Corner 👉 Ethereum Guide
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1. Matt Allen’s Corner
Beginner’s Guide To Ethereum
Hi Everyone! Today, I’m highlighting one of our sections in GRIT VIP! Below, I share part of my article, Beginner’s Guide To Ethereum. Since I did Bitcoin last week, I felt I should do Ethereum this week to cover the two biggest cryptos.
The Ethereum project was created in 2013 by visionaries Vitalik Buterin and Gavin Wood and co-founders Charles Hoskinson and Anthony Di Iorio. They unveiled the Ethereum network 2015, aspiring to transcend Bitcoin's limitations.
Ethereum's core mission is to establish a decentralized computing platform powered by blockchain technology. This innovative network enables developers to build and operate smart contracts and decentralized applications (dapps) independently of central oversight, fostering a new digital autonomy and creativity era.
What is Ethereum?
It is not just a cryptocurrency; it's a decentralized platform for building and running smart contracts and decentralized applications (dapps) without downtime, fraud, control, or interference from a third party. Ethereum’s native currency, Ether (ETH), powers transactions and computational services on the network.
Unlike Bitcoin, primarily a digital currency, Ethereum aims to be a more versatile and programmable blockchain, allowing developers to create complex contracts that can automate various applications, from finance and gaming to supply chain management. This flexibility has established Ethereum as a leading force in the digital currency space, driving innovation in the burgeoning field of decentralized finance (DeFi) and beyond, making it a key platform for the future of decentralized technology.
What is a Smart Contract?
Smart contracts are self-executing contracts with the terms of the agreement directly written into lines of code. They are a huge innovation brought to prominence by Ethereum. These digital contracts automatically enforce and execute the terms of an agreement based on predefined rules without the need for intermediaries.
Smart contracts operate on the Ethereum blockchain, which acts as a decentralized platform that supports these contracts by providing a secure and transparent environment for their execution.
How smart contracts run on Ethereum is integral to its blockchain's functionality. Every time a smart contract is executed, it requires a certain amount of "gas" (a unit that measures the computational effort required) to operate, paid in Ethereum's native currency, Ether. This ensures that developers write efficient code and protects the network from being overwhelmed by unnecessary tasks.
Imagine a scenario where Alice wants to buy a house from Bob. Instead of going through the traditional, paperwork-heavy process, they use a smart contract on the Ethereum blockchain. The contract is programmed with the terms of their agreement: Alice will transfer a certain amount of Ether (the cryptocurrency used on Ethereum) to the contract, and in return, the contract will grant her ownership of the house.
Here's how it works in simple steps:
Contract Creation: Bob creates the smart contract and specifies the sale price and the digital title of the house. The contract is then deployed to the Ethereum blockchain.
Payment: Alice sends the specified amount of Ether to the smart contract. The contract automatically verifies that the correct amount has been received.
Ownership Transfer: Upon receiving the payment, the smart contract instantly transfers the digital title of the house to Alice, signifying that she is now the owner.
Funds Release: The smart contract then releases the Ether to Bob, completing the sale.
To read the full resource, click here. 📚
Cheers,
2. Comin’ Up
EARNINGS AND ECONOMIC DATA
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