Ethereum and how Ethereum works

[Hugo Barbosa]

Ethereum 2.0, which is expected to be launched in 2020, marks the long-awaited upgrade of the Ethereum mainnet.

What is Ethereum

Similar to Bitcoin, Ethereum is a decentralized blockchain platform. Ethereum, known as the 2.0 era of blockchain, was once thought to be possible to surpass Bitcoin, and it can support many advanced functions, including users issuing currency, smart protocols, decentralized transactions and the establishment of decentralized autonomous organizations ( DAOs) or decentralized autonomous companies (DACs).

Ethereum does not specifically support every single type of function as a feature. Instead, Ethereum includes a built-in Turing-complete scripting language that allows you to write for the features you want to implement through a mechanism called "contract". Code. A contract is like an automated agent. Whenever a transaction is received, the contract runs a specific piece of code that can modify the data stored within the contract or send the transaction. Advanced contracts can even modify their own code.

How Ethereum works

Like other blockchains, Ethereum requires thousands of people to run software at the same time to drive the entire network. Every node in the network runs an Ethereum Virtual Machine (EVM). You can consider the EVM as an operating system for understanding and executing software written in a specific programming language of Ethereum. The software or applications executed by the Ethereum virtual machine are called "smart contracts".

To operate on this global computer, you need to pay. But it is not used to pay in conventional currencies such as US dollars and British pounds. Instead, the network's native cryptocurrency is used for payment, which is ether. Ethereum is almost identical to Bitcoin, except that the former can also be used to perform smart contract payments on Ethereum.

Both individuals and smart contracts are regarded as users of Ethereum. Smart contracts can do the same thing as human users. But unlike human users, smart contracts can also execute predefined computer programs to perform various operations.

How are Ethereum options different from futures?

The gap between the two is very large.
For example, as the price of Ethereum was 9000 US dollars, Tom and Jerry predict that Ethereum was expected to continue to rise, so they bought Ethereum contract and bitcoin options, respectively.

1. Tom choose to purchase a Bitcoin contract which cost $9000
2. Jarry choose to buy a bitcoin option which costs about $5

As they wish, after Tom and Jarry placed the orders, the Ethereum price rose sharply, which less than an hour, from 9,000 US dollars to 9,500 US dollars.

By comparison, Tom and Jarry get the same benefits, but the cost gap is very large.

1. Tom spent $9,000 and earned $ 500, which is a 5.5% return on the cost.
2. Jarry spent $5 and earned $500, which is calculated as 10,000% of the income.

Conversely, if Ethereum fell from 9,000 US dollars to 8,500 US dollars in one hour, Tom will be lost 500 dollars, and Jarry only lost the option fee, which would be 5 dollars. Which is "Limited losses and Unlimited gains".





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[bitbit347]

I Hope ETH will REALLY  rise since many people experienced a huge loss on the Bitcoin halving night. Thanks to the Bitoffer has no risk of liquidation.

[damsix]

Ethereum V.2 has been launched and the price is still the same as before, there is around 200 USD and this is still too far to the price of 300 USD.
I am sure this post is also not entirely for Ethereum V.2 but there is another purpose when we look at the 2 paragraph lines below the last picture.

But it's also good for Ethereum to continue to improve its performance here for security in terms of support for DAO and DAC, we love Ethereum!

[hair]

ETH is my favorite coin ... with innovation and adequate security, attracting more investors to invest. I am waiting for ethereum to get high prices

[river]

Ethereum is the major altcoin so the whole cryptomarket is waiting for the ethereum 2.0 version I hope 2.0 will be better than current version here by many potential erc20 projects will come in cryptomarket.

[Cici Lee]

Me too, we could just wait for it and it will gonna happen. Meanwhile, I will try the option.