01-20-2021, 05:21 AM
Noob/ELI5 guide to Ethereum
<!-- SC_OFF --><div class="md"><p>So you've heard about Bitcoin and you understand thats its peer to peer money. You can send me some and i can send you some. Simple and easy.</p> <p>But if you're new you're probably wondering what people mean when they say Ethereum is the world computer. You might go to a website like <a href="https://Uniswap.io">Uniswap.io</a> and think "Whats the big deal? Bitcoin is also on exchanges."</p> <p>The difference is, Uniswap runs on the Ethereum network. Which means theres no server holding a database or making trades for you. Uniswap is just an interface which makes assessing it easier, the same as how a bitcoin wallet makes sending bitcoin easier than using a terminal. The entire back end of uniswap is running on all the Ethereum nodes. Uniswap's website could be shut down tomorrow and everyone would still be able to use it. Even the creator can not shut it down because he would need to convince everyone running an Ethereum node to delete it. Similar to how Bitcoin can't be shut down by its creator. An important benefit is Uniswap the dapp can't freeze your account, ask for documents to prove your identity or limit how much you can trade. It's a self driving exchange.</p> <p>Uniswap isn't the only dapp running on Ethereum, anyone can write some code and deploy it to the network. We have dapps like synthetix which allow you to trade real world assets with infinite liquidity. This means you can buy $2,000,000 worth of an asset without any slippage in price, it also means anyone from anywhere in the world will soon able to invest in US companies (TSLA, AAPL aren't on synthetix yet but are coming soon). This is powerful and something people in restricted countries have wanted to do for a long time.</p> <p>Theres thouands of assets on Ethereum which can be stored in your Eth wallet. An interesting one is decentralised stablecoins like Dai which are pegged to the price of the dollar algorithmically. These stablecoins can be used to pay anyone from anywhere in the world. You can also earn interest on these dollars by using a decentralised savings account like <a href="https://Aave.com">Aave.com</a> . These dapps earn you interest by taking your stablecoins and lending them out to borrowers while charging them an interest rate (I wont go into how these dapps ensure the borrower repays the loan because im trying to keep things ELI5).</p> <p>I've barely scratched the surface of all the dapps Ethereum has but felt the need to make this post because I remember getting into crypto and not have a clue what Ethereum was or did besides using it to send to Binance because it was quicker than using bitcoin.</p> <p>If you want to learn more go to <a href="https://Ethereum.org">Ethereum.org</a></p> <p>I also recommend reading "The Infinite Machine" and researching the Ethereum 2.0 upgrade if you get chance.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Oxygenjacket"> /u/Oxygenjacket </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/l0hlki/noobeli5_guide_to_ethereum/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/l0hlki/noobeli5_guide_to_ethereum/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>So you've heard about Bitcoin and you understand thats its peer to peer money. You can send me some and i can send you some. Simple and easy.</p> <p>But if you're new you're probably wondering what people mean when they say Ethereum is the world computer. You might go to a website like <a href="https://Uniswap.io">Uniswap.io</a> and think "Whats the big deal? Bitcoin is also on exchanges."</p> <p>The difference is, Uniswap runs on the Ethereum network. Which means theres no server holding a database or making trades for you. Uniswap is just an interface which makes assessing it easier, the same as how a bitcoin wallet makes sending bitcoin easier than using a terminal. The entire back end of uniswap is running on all the Ethereum nodes. Uniswap's website could be shut down tomorrow and everyone would still be able to use it. Even the creator can not shut it down because he would need to convince everyone running an Ethereum node to delete it. Similar to how Bitcoin can't be shut down by its creator. An important benefit is Uniswap the dapp can't freeze your account, ask for documents to prove your identity or limit how much you can trade. It's a self driving exchange.</p> <p>Uniswap isn't the only dapp running on Ethereum, anyone can write some code and deploy it to the network. We have dapps like synthetix which allow you to trade real world assets with infinite liquidity. This means you can buy $2,000,000 worth of an asset without any slippage in price, it also means anyone from anywhere in the world will soon able to invest in US companies (TSLA, AAPL aren't on synthetix yet but are coming soon). This is powerful and something people in restricted countries have wanted to do for a long time.</p> <p>Theres thouands of assets on Ethereum which can be stored in your Eth wallet. An interesting one is decentralised stablecoins like Dai which are pegged to the price of the dollar algorithmically. These stablecoins can be used to pay anyone from anywhere in the world. You can also earn interest on these dollars by using a decentralised savings account like <a href="https://Aave.com">Aave.com</a> . These dapps earn you interest by taking your stablecoins and lending them out to borrowers while charging them an interest rate (I wont go into how these dapps ensure the borrower repays the loan because im trying to keep things ELI5).</p> <p>I've barely scratched the surface of all the dapps Ethereum has but felt the need to make this post because I remember getting into crypto and not have a clue what Ethereum was or did besides using it to send to Binance because it was quicker than using bitcoin.</p> <p>If you want to learn more go to <a href="https://Ethereum.org">Ethereum.org</a></p> <p>I also recommend reading "The Infinite Machine" and researching the Ethereum 2.0 upgrade if you get chance.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Oxygenjacket"> /u/Oxygenjacket </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/l0hlki/noobeli5_guide_to_ethereum/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/l0hlki/noobeli5_guide_to_ethereum/">[comments]</a></span>Kind Regards R