Ethereum

What is Ethereum?

Before reading this article we suggest you read our article: What is a Blockchain?

In an oversimplified sentence, you could say Ethereum is a unique platform that a special type of application can be built upon. But that doesn’t sound revolutionary at all – but it really is.

The whole cryptocurrency and blockchain space is difficult to understand for a normal person as its foundation is all code. But it’s okay, because we aren’t all expected to understand the code – we just need to understand a little about how the system works.

Essentially we are all visual creatures so let’s turn this explanation into a graphical one. Imagine ethereum as a massive highway, the cars driving on it as DAPPs and the fuel that the car runs of is called Ether.

Ethereum (the highway) can be thought of as a sandbox blockchain where developers can create apps that use blockchain technology however they please.

The DAPPs (Decentralised applications) are the cars that drive on the ethereum ‘highway’ and are just like normal applications except that they answer to no central authority, which is what makes them decentralised (for some cool real world DAPP examples check out our DAPP articles).

Unfortunatley nothing in this world is free and that’s where Ether comes in. For these DAPPs to run (the cars), they have to pay the network in its native currency which is called Ether. Ether can be mined and can be exchanged for regular fiat currencies on exchanges such as CEX.IO or Poloniex.