Ethereum is a decentralized open-source blockchain having smart contract and other functionalities. Ether (ETH) is the native cryptocurrency linked to the Ethereum platform. It is the second-largest cryptocurrency by market capitalization after leaders Bitcoin. Launched in 2015 by Vitalik Buterin, a programmer, Ethereum ensures that Smart Contracts and Distributed Applications can be built and run without fraud, downtime, or interference from third parties.
Understanding Ethereum
Apart from being just a platform, Ethereum is also a programing language (Turing complete) running on a Blockchain. This facet helps developers to build and publish distributed applications with those running on Ethereum being operated on the platform-specific cryptographic token Ether.
Cryptocurrency Ether is like a vehicle moving around on the Ethereum platform and is used by developers to develop and run applications inside Ethereum. Ether has broadly two functionalities. On one hand, it can be traded as a digital currency just like other cryptocurrencies and on the other, it is used to run applications and even monetize work.
Ethereum can also be used to codify, decentralize, secure, and trade anything on the platform. One of the important use-cases that deserve mention is the partnership of Microsoft with ConsenSys. This collaboration offers Ethereum Blockchain as a Service (EBaaS) on Microsoft Azure. Enterprise clients and developers can thereby have a single cloud-based Blockchain developer environment.
Mining Ethereum
While mining Ethereum is not complex, it is not simple either as you will need a whole lot of hardware to set the process up. You have to link your computer to mining software and provide adequate power to solve complex algorithms.
The most critical hardware that you will need is a very powerful GPU or CPU, though the former is recommended for quicker mining. You should also get an ASIC, which is a mining-focused GPU, if possible. However, it is very expensive and not recommended for beginners. Ensure that the GPU you choose has video RAM and decent processing power. The more you have the power, the faster will be your mining operation. You will also need a stable and reliable Internet connection.
Acquiring all these components for mining Ethereum is easier said than done as your budget can go through the roof. But if you want to make mining Ethereum a profitable venture, you have to sink money into it first.
Buying Ether (ETH)
The current price of one Ether is $3863 though this fluctuates almost on a day-to-day basis.
You can buy ETH from wallets or exchanges directly but first, check which services are available where you live. Exchanges are businesses where you can buy crypto using traditional fiat currency. All the ETH that you buy will be held in custody by them till such time you have control on a wallet the ETH can be sent to. If you want more control, buy ETH peer-to-peer from decentralized exchanges (DEXs) where you can trade without parting control of your funds to a centralized company.
Finally, you can buy from wallets some of which even allow the use of debit or credit cards and bank transfer. In some geographical locations though, restrictions apply on these transactions.
