04-16-2023, 02:42 PM
What actually is Ethereum? Explained simply for dummies
<!-- SC_OFF --><div class="md"><p>BTC & ETH is the holy grail of portfolios on this sub.</p> <p>Most of you already understand Bitcoin and its "digital gold" status. However, I notice that Ethereum is more considered as your "safest alt exposure", without much depth in its utility or what it solves.</p> <p>I'm creating a short post to explain the value proposition of Ethereum without discussing tokenomics and price speculation.</p> <p>Enjoy!</p> <h1>Ethereum Explained for N00bs</h1> <p><strong>Ethereum</strong> is the network. <strong>Ether (ETH)</strong> is the native coin.</p> <p>The token is also casually referred to as Ethereum sometimes, but you need to know the distinction.</p> <p>What the project provides is a platform to build <strong>decentralized apps</strong> or launch tokens on the Ethereum network, called <strong>ERC-20 tokens</strong>.</p> <p>These are the "coins" that you can swap on DEXes such as Uniswap (for example: Aave, Graph, USDC, etc.). They all have contract addresses in the format of "0x..." and you can provide liquidity on the Ethereum network.</p> <p>Anyone can launch a token on the Ethereum network, but only those that provide some value or utility will be successful.</p> <p>Apart from tokens, you can also build smart contracts on the Ethereum network.</p> <p><strong>Smart contact</strong> is an executable piece of code that you can deploy to the network. It's like a function in programming, where you can define which functionalities to run when users transact with their addresses.</p> <p>One or more smart contracts + a front-end (HTML/CSS/JS + web3 libs) to interact with them, effectively create a dApp (decentralized application).</p> <p>Lastly, for any operation on the network, you pay <strong>gas fees</strong> using the ETH token. I think most of you are already intimately familiar with this concept.</p> <p>---</p> <p>This is just a general overview to give newcomers a clearer perspective of what Ethereum is and what is value proposition is.</p> <p>To learn more, you can read about the proof-of-stake consensus mechanism, the blockchain trilemma, layer 2s, or dive deeper in the technical details of the Ethereum network, even try to write a smart contract and deploy it on a testnet using the Remix IDE and following the docs. This might be your first step towards becoming a blockchain developer.</p> <p>Welcome and enjoy accumulating!</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/BusinessBreakfast3"> /u/BusinessBreakfast3 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12nfpun/what_actually_is_ethereum_explained_simply_for/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12nfpun/what_actually_is_ethereum_explained_simply_for/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>BTC & ETH is the holy grail of portfolios on this sub.</p> <p>Most of you already understand Bitcoin and its "digital gold" status. However, I notice that Ethereum is more considered as your "safest alt exposure", without much depth in its utility or what it solves.</p> <p>I'm creating a short post to explain the value proposition of Ethereum without discussing tokenomics and price speculation.</p> <p>Enjoy!</p> <h1>Ethereum Explained for N00bs</h1> <p><strong>Ethereum</strong> is the network. <strong>Ether (ETH)</strong> is the native coin.</p> <p>The token is also casually referred to as Ethereum sometimes, but you need to know the distinction.</p> <p>What the project provides is a platform to build <strong>decentralized apps</strong> or launch tokens on the Ethereum network, called <strong>ERC-20 tokens</strong>.</p> <p>These are the "coins" that you can swap on DEXes such as Uniswap (for example: Aave, Graph, USDC, etc.). They all have contract addresses in the format of "0x..." and you can provide liquidity on the Ethereum network.</p> <p>Anyone can launch a token on the Ethereum network, but only those that provide some value or utility will be successful.</p> <p>Apart from tokens, you can also build smart contracts on the Ethereum network.</p> <p><strong>Smart contact</strong> is an executable piece of code that you can deploy to the network. It's like a function in programming, where you can define which functionalities to run when users transact with their addresses.</p> <p>One or more smart contracts + a front-end (HTML/CSS/JS + web3 libs) to interact with them, effectively create a dApp (decentralized application).</p> <p>Lastly, for any operation on the network, you pay <strong>gas fees</strong> using the ETH token. I think most of you are already intimately familiar with this concept.</p> <p>---</p> <p>This is just a general overview to give newcomers a clearer perspective of what Ethereum is and what is value proposition is.</p> <p>To learn more, you can read about the proof-of-stake consensus mechanism, the blockchain trilemma, layer 2s, or dive deeper in the technical details of the Ethereum network, even try to write a smart contract and deploy it on a testnet using the Remix IDE and following the docs. This might be your first step towards becoming a blockchain developer.</p> <p>Welcome and enjoy accumulating!</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/BusinessBreakfast3"> /u/BusinessBreakfast3 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12nfpun/what_actually_is_ethereum_explained_simply_for/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12nfpun/what_actually_is_ethereum_explained_simply_for/">[comments]</a></span>