Crypto for women: Ethereum, Ether and ETH explained
Finance and women have always seemed like such dissimilar worlds, and, sometimes, they still do. In the last few years, the internet has helped close the financial gender gap, and cryptocurrencies are helping more women enter the finance field.
According to a Gemini report, women account for 26% of current crypto holders in the U.S., and they make up 53% of the “crypto curious” — people interested in getting into cryptocurrency soon.
But before investing in crypto, we first need to understand how it works. In my last article, I discussed the main characteristics of bitcoin and the blockchain technology. Now, let’s look at Ethereum.
First, I’d like to explain the differences between Ethereum and Ether. Ethereum is a blockchain-based platform, or to put it in another way, it’s a network. Just as the internet is a network of computers, Ethereum is also a network.
Ethereum is best known for its cryptocurrency, Ether (ETH). Ether is the native token of Ethereum’s network, and it’s also the second largest cryptocurrency worldwide in terms of market capitalization. With ETH, you can send payments directly to another person without the need for an intermediary.
On March 14, 2022, one ETH was worth $2,547.70.
But the Ethereum network is more than a blockchain platform. On Ethereum, software developers can build everything from decentralized lending platforms to social networks.
As a decentralized system, Ethereum is not under the control of any governing authority. It is completely autonomous.
Applications that are decentralized have the potential to entirely change the way companies deal with their audiences and make money by eliminating the need for intermediaries.
As such, in the Ethereum Blockchain customers do not need an intermediary to know where their product originated, while smart contracts can ensure safe and efficient trades for both parties.
In short, Ethereum is a distributed computing platform that uses an open-source Blockchain to allow developers to build and deploy decentralized applications.
Ether and Bitcoin
As you already know, Ethereum’s network uses Ether as its token (crypto), which can be used to send money to and from users without the involvement of any banks or financial institutions.
Ethereum and Bitcoin are two entirely different projects.
Bitcoin is a cryptocurrency and money transfer system supported by a distributed public technology known as Blockchain.
Ethereum has taken the technology behind Bitcoin and significantly enhanced it. It has its own coding language, internet browser and payment system. It also allows developers to create decentralized applications using the Ethereum Blockchain.
On the Ethereum blockchain, applications can be created using “smart contracts”. Like traditional paper contracts, smart contracts specify the terms of an agreement between the parties.
But unlike traditional contracts, smart contracts are automatically executed when terms are reached without participants needing to know who is on the other side and without requiring any kind of intermediary.
It was a computer scientist named Nick Szabo who made the first smart contract proposal in 1997, using the famous analogy to a vending machine. A vending machine has a cost for each drink, and once the coins are inserted, it will automatically run.
Like the vending machine, a smart contract can execute terms without a human intermediary.
There is so much more information I could share with you about Ethereum, such as how you can get it, the mining process, risks, Ethereum 2.0, and so on. Stay informed and up to date on crypto and investing for women in our upcoming articles.