What is Ethereum
Ethereum is a decentralized, open-source blockchain platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.
This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middleman or counterparty risk.
Ethereum was initially proposed in 2013 by Vitalik Buterin, a programmer and co-founder of Bitcoin Magazine. The platform was launched in 2015 and has since become one of the largest and most widely used blockchain platforms in the world.
How it works
Ethereum works using a blockchain, which is a shared digital ledger that records all transactions made on the network. When a transaction is made, it is broadcast to the network and validated by nodes (computers that are part of the network) through a process called consensus. Once the transaction has been validated, it is recorded on the blockchain and cannot be altered.
The Ethereum network also includes smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein are transparent and open for anyone to see. Smart contracts allow for the automation of complex processes, including the management of contracts and agreements.
The Ethereum platform is powered by its own cryptocurrency, called Ether. Ether is used to pay for the fees associated with transactions and running smart contracts on the Ethereum network. It is also used as a store of value and a means of exchange.
Ethereum has a decentralized virtual machine, called the Ethereum Virtual Machine (EVM), which runs on the Ethereum network and allows anyone to run any program, regardless of the programming language given enough time and memory. The EVM makes it possible for developers to create and deploy decentralized applications (dApps) on the Ethereum platform.
How to make money from ethereum
There are several ways you can make money with Ethereum:
Mining: You can set up a computer to mine Ethereum and earn a small profit in return for contributing your computing power to the Ethereum network.
Trading: You can buy and sell Ethereum on cryptocurrency exchanges, such as Coinbase or Binance, in an attempt to make a profit from price fluctuations.
Staking: You can participate in Ethereum's proof-of-stake (PoS) consensus mechanism by staking your ETH and earning a share of the rewards.
Building and deploying decentralized applications (dApps): You can build and deploy your own dApps on the Ethereum platform and charge users for access or use.
Providing goods or services in exchange for Ethereum: You can accept Ethereum as payment for goods or services you provide.
Investing: You can buy Ethereum and hold it for the long term in the hope that it will increase in value.
It's important to keep in mind that investing in Ethereum, or any other cryptocurrency, carries risks and you should carefully consider your investment objectives and risk tolerance before making any investment decisions.