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Concept of Ethereum
In my last update in September 2021, concept of Ethereum is a decentralized blockchain platform that allows developers to create and deploy smart contracts and decentralized applications. It was proposed by Vitalik Buterin at the end of 2013 and put online on July 30, 2015. The idea of Ethereum is to provide a scalable and scalable platform for creating a variety of applications. Here are some key concepts of Ethereum: Blockchain Technology: Ethereum, like Bitcoin, is based on blockchain technology. Blockchain is a distributed, immutable ledger that records all transactions on a computer network (node). This ensures transparency and security as each block of data is linked to the previous one, making it difficult to change historical records. Smart contracts: One of the defining characteristics of Ethereum is the concept of “smart contracts”.
Once embedded in the Ethereum blockchain, they can automatically execute, apply or manage contracts without the need for middlemen. Ether (ETH): Ethereum has its own native cryptocurrency called Ether (ETH). Ether is used to pay for transactions and computing services on the network. It also serves as an incentive for network participants, such as miners and sponsors.
Ethereum aims to be decentralized, meaning that there is no central authority that controls the network. Instead, the network is maintained and secured by a network of nodes (computers).
EVM (Ethereum Virtual Machine):
Ethereum uses a virtual machine called Ethereum Virtual Machine (EVM). It enables the execution of smart contracts from all nodes in the network, ensuring that the results of the contract are consistent across all machines.
Gas: To prevent network corruption and distribute computing resources fairly, Ethereum introduced the concept of \”gas\”. Each operation in the smart contract requires some gas, and users will pay for this gas in Ether. The more complex the task, the more gas it costs. Ethereum Improvement Plan (EIP): Improvements and changes to the Ethereum system are proposed as part of the Ethereum Improvement Plan.
An Ethereum wallet is a software or hardware application that allows users to store, manage, and interact with their Ethereum assets. Since Ethereum is a cryptocurrency that runs on a decentralized blockchain, users need a wallet to access and manage Ethereum holdings. There are different types of Ethereum wallets, each with its own features and considerations:
4 Types of Ethereum Wallets (ETH)
1. Desktop Ethereum Wallet
These are applications installed on the user’s computer. They provide direct access to the Ethereum blockchain and give users full control over their private keys. Examples include Meta Mask, My Ether Wallet (MEW), and Exit.
2. Mobile Ethereum Wallets
Mobile wallets that work with smartphones offer convenience and accessibility. They can be useful for regular transactions and interactions with D Apps. Examples include Trust Wallet, Coinbase Wallet, and imp Token.
3. Web Ethereum Wallet
These wallets are accessed through a web browser and are usually online services provided by third-party platforms. They are safe but may not provide the same level of security as software wallets. Examples include the My Ether Wallet (MEW) web version and the Meta Mask browser extension.
4. Hardware Ethereum wallet
These are virtual devices designed to store cryptocurrency offline. Hardware wallets store encryption keys offline, making them less susceptible to hacking attempts and malware. Examples include Ledger Nano S, Ledger Nano X, and Tremor. It is important to note that regardless of the type of Ethereum wallet you choose, the wallet generates and stores a pair of cryptographic keys: a public key (used to access Ethereum) and a private key (used to access and spend the associated Ethereum public key).