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Bored Ape Crypto Club
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As you already understood from the previous post, only Bitcoin is digital money. But why is Ethereum needed and why is it second in the list of cryptocurrencies?
ETH is a platform for decentralized applications.
Ethereum can be compared to the App Store or Google Play - a single system for applications. But all the applications that you are currently using are centralized applications. For example, Google, Vkontakte, YouTube, Soundcloud, Telegram. All these applications are controlled by companies. They have full control over them. They can block accounts, introduce new rules. In short, do whatever they want.
The emergence of Ethereum introduced a new concept - a decentralized application (dApp). This application, which is launched on the blockchain, operates completely autonomously and is not controlled by anyone. And most importantly, the rules and mechanisms of this application are absolutely transparent. A good example of such an application is a decentralized exchange or DEX (Decentralized Exchange).
To use a decentralized exchange, you do not need to create an account. You do not need to trust your funds to third parties, as is the case with a classic centralized exchange. Such an exchange works through smart contracts that are in the blockchain. This ensures their security and immutability.
The largest category of decentralized applications on Ethereum includes DeFi (Decentralized Finance). Decentralized finance is a set of financial instruments, such as exchanges, lending systems, insurance, options trading exchanges, and much more. All these financial instruments operate autonomously and without a central governing body. At the same time, the user always remains in control of their funds and can earn money on these instruments. This is the power of decentralized applications.
The main goal of Ethereum is to become a platform for the decentralized Internet, where developers will release their applications. For example, decentralized mail, games, streaming platforms, insurance and voting services, financial instruments, and so on. Ethereum is changing the concept of the Internet, where everything is controlled by large companies, to a new one, where applications are autonomous and decentralized, and users can control their information and assets.
As you can see, Ethereum is not a competitor to Bitcoin.
Bitcoin is digital money.
Ethereum is a platform for decentralized applications.
The main unit of account in the Ethereum blockchain is Ether (ETH). It is used to send transactions and interact with smart contracts. It is no longer possible to mine Ether on video cards. Now it can only be staked, keeping the network secure. There are many other blockchains on the market now that are trying to compete with Ether. These are Avalanche, Solana, Tron, Cosmos. And many others. Each project has its own features and advantages. Someone has a higher transaction speed, cheaper commission, a different security model.
ETH is a platform for decentralized applications.
Ethereum can be compared to the App Store or Google Play - a single system for applications. But all the applications that you are currently using are centralized applications. For example, Google, Vkontakte, YouTube, Soundcloud, Telegram. All these applications are controlled by companies. They have full control over them. They can block accounts, introduce new rules. In short, do whatever they want.
The emergence of Ethereum introduced a new concept - a decentralized application (dApp). This application, which is launched on the blockchain, operates completely autonomously and is not controlled by anyone. And most importantly, the rules and mechanisms of this application are absolutely transparent. A good example of such an application is a decentralized exchange or DEX (Decentralized Exchange).
To use a decentralized exchange, you do not need to create an account. You do not need to trust your funds to third parties, as is the case with a classic centralized exchange. Such an exchange works through smart contracts that are in the blockchain. This ensures their security and immutability.
The largest category of decentralized applications on Ethereum includes DeFi (Decentralized Finance). Decentralized finance is a set of financial instruments, such as exchanges, lending systems, insurance, options trading exchanges, and much more. All these financial instruments operate autonomously and without a central governing body. At the same time, the user always remains in control of their funds and can earn money on these instruments. This is the power of decentralized applications.
The main goal of Ethereum is to become a platform for the decentralized Internet, where developers will release their applications. For example, decentralized mail, games, streaming platforms, insurance and voting services, financial instruments, and so on. Ethereum is changing the concept of the Internet, where everything is controlled by large companies, to a new one, where applications are autonomous and decentralized, and users can control their information and assets.
As you can see, Ethereum is not a competitor to Bitcoin.
Bitcoin is digital money.
Ethereum is a platform for decentralized applications.
The main unit of account in the Ethereum blockchain is Ether (ETH). It is used to send transactions and interact with smart contracts. It is no longer possible to mine Ether on video cards. Now it can only be staked, keeping the network secure. There are many other blockchains on the market now that are trying to compete with Ether. These are Avalanche, Solana, Tron, Cosmos. And many others. Each project has its own features and advantages. Someone has a higher transaction speed, cheaper commission, a different security model.