A Crypto Juggernaut in the Blockchain Industry
Cryptocurrency has been a major driving force in the blockchain industry – and as the year goes by, more and more cryptocurrencies are going to be introduced into the marketplace. Thereby, making the use of physical cash become history as they are slowly wiping away in exchange, and the way people transact business in a world that has become a global village. In Nigeria, the use of cryptocurrency is majorly by those that understand the effectiveness and its benefits to a large extent. Could this be blamed on education or just being uninformed? Read on.
There are lots of cryptocurrencies in Nigeria today, but our point of focus is Ethereum. This particular coin wasn’t famous when the blockchain started until the early year of 2015. Then after much work and effort, it became a globally used cryptocurrency to make transactions across continents. In Nigeria, it is used by the crypto – enthusiasts who trade and also makes it a habit to teach webinars on trading the Ethereum.
You might be new to cryptocurrency and hearing the word Ethereum for the first time, and wondering what it actually is. In this article, you would be learning about everything you need to know about a blockchain giant Ethereum.
What is Ethereum?
Ethereum is a technology that enables you to send cryptocurrency to someone anywhere for a fee. This is a system that can be used by everyone without interference and cannot be taken down.
Ethereum was founded by a Canadian – Russian programmer who goes by the name Vitaly Dimitrijevic. Vitaly Dimitrijevic is a programmer and also a writer who became very ignited with cryptocurrency very early in his age and created one of the best-known cryptocurrencies ever. He also Co-founded the cryptocurrency Magazine, Bitcoin Magazine.
In Nigeria, at the sight of innovations like this, people already view it as just a payment app. You might think Ethereum was just created for making payments. There are lots of things that this blockchain technology can do for you asides from making payments in Nigeria.
Ethereum is way more than a digital purse. It also allows you to do whatever you want with it because it is regarded as a financial marketplace for various things such as; games, apps, and payments. Making it a very good decentralized system where there is no government interference to mess things up.
How Does Ethereum Work?
Ethereum is a unique blockchain network that isn’t governed by anyone but by code. Its aim majorly is to make the creation of applications that aren’t managed by anyone. Traders in Nigeria have several ways through which this is achieved through utilizing some key components of Ethereum.
Key Components of Ethereum
The following are the key components that enable the functions of Ethereum to be successful whenever a transaction or an action is being done. With this, the completion in the blockchain network is achieved. They are the following;
- Smart contracts
- The Ethereum blockchain
- Consensus Mechanism
- The Ethereum Virtual Machine
When you hear the word smart contracts, what comes to your mind? A Legal binding document between two or more people. Smart contracts are rules that govern how money changes hands. Rules are meant to be followed, that is part of what makes the cryptocurrency unique which is playing by the rules.
The Ethereum Blockchain
This is the memory that stores every transaction made in the entire history. In Nigeria, records are needed for so many things as a way of making confirmation of payments made. This is a key component of the blockchain industry.
The way this works is strategically to make the network security tight whereby every data is recorded and validated on the blockchain. When this is done, it creates circulation and helps issue a new token to its users.
The Ethereum Virtual Machine
This is a verification mechanism that ensures every smart contract and rule in making a transaction is being followed. Traders in Nigeria understand this very much as when this is not done appropriately, there could be a termination of the transaction being done. So, as a person trying to make use of Ethereum, ensure you undergo a thorough background check before initiating a transaction or doing anything in general.
These are referred to as Ethereum tokens. They are responsible for making transactions and smart contracts on Ethereum. By having a successful transaction done on Ethereum, it was verified and activated by the Ether.
Understanding the basics of these components and how it works is a must for anyone who is into cryptocurrency trading of buying and selling. Knowledge and understanding are very crucial for everything. When you have a vivid understanding of how all these work, there are so many things you can do with the knowledge gained in Nigeria.
Cryptocurrency is here to stay and it is our duty to harness the power it has to change the way we do things and transact on a daily basis. This article is to educate you on the innovation of the Ethereum coin, its uses, and its benefits.
In Nigeria, the cashless policy is making a mark in the way we do things across states. What is needed to be done is to educate people more on the importance. If some impactful webinars can be created to foster this growth, the better people will understand the blockchain industry.