The Essence of Ethereum: What Does It Represent?

Johnny Walker
Chief Editor
24 March 2018 Updated on  Обновлено   10 February 2023

On the wave of total obsession with the bitcoin trading, other cryptocurrencies also gained popularity in the international market. These include Ethereum, which is one of the top 10 altcoins. It has a number of special features and advantages over its predecessors and analogues.

Ethereum: features of operation and application

essence of Ethereum

As is known, after discovering a considerable number of shortcomings of bitcoin, they invented alternative cryptocurrencies, which, united by specific criteria, were called altcoins. One of the most successful and popular types of altcoins is Ethereum.

Ethereum is a blockchain platform that allows you to create decentralized applications and smart contracts. Their main task is monitoring and control of the processes occurring in the system. The unit of this platform is ether, denoted by the ticker ETH.

The operation of the entire platform Ethereum is possible thanks to the activity of smart contracts, i.e. unique computer algorithms. They are responsible for the automatic transactions between all participants of this system. Moreover, the fulfilment of established conditions is obligatory for the work of such smart contracts. Thus, there are three integral components of this system:

  1. Two subjects of the transaction — buyer and seller, or other participants with such functions;
  2. The object of the transaction — for example, purchase and sale;
  3. A prerequisite for the execution of the transaction, which was initially programmed. The presence of this scheme allows you to perform all the tasks freely.

There are several main applications of Ethereum:

  • As a means of payment;
  • For savings, like any other investment asset;
  • For income, as a speculative instrument.

This platform becomes a base for banking activities, investment funds, monetisation of video games, and implementation of developments on Ethereum blockchain from various fields of activity.

Main advantages of Ethereum are the projected development and absence of sharp price fluctuations that are inherent in bitcoin. Another significant advantage is that the platform offers greater opportunities, including investment programs and the creation of smart contracts. The major drawback of Ethereum is the lower popularity of this system compared to bitcoin that doesn’t want to yield the palm. In some ways, this suggests limited earning prospects. Besides, not all services take this unit as a means of payment.

How to get Ethereum cryptocurrency

the use of Ethereum

You can get some Ethereum coins, ethers, in the following ways:

  • Mining (provides for the same actions as for obtaining other cryptocurrencies);
  • Purchase on any cryptocurrency exchange (for example,;
  • Purchase on an instant exchange service (this method is less profitable, but provides a simpler purchase compared to crypto exchanges);
  • Special crypto ATMs designed for buying cryptocurrency.

Special crypto wallets are used for further storage of ethers. The most common of them are Mist, MyEtherWallet, Jaxx, EthereumWallet.

Thus, Ethereum can’t be considered a simple cryptocurrency. It includes an entire ecosystem in which you can create dApps and smart contracts, issue your own tokens, use ethers as an investment instrument, and earn money in other ways. As you can see, this blockchain platform can be used at your discretion and according to your goals.


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