What is Ethereum? – New Zealand’s Ethereum Overview
What is Ethereum?
Launched in 2015 by Vitalik Buterin, Ethereum is the world’s largest and most well-established decentralised software platform that enables Smart-Contracts and Distributed Applications (ĐApps). Ethereum is currently the 2nd largest crypto in the world, and it accounts for which accounts for as is much as 9.6% of the money combined in cryptocurrency.
The Ethereum network is powered by Ether (ETH), an ultrafast, transparent and decentralised cryptocurrency.
What makes Ethereum so special?
Ethereum is special due to multiple good reasons:
- Anyone can build there own cryptocurrency or token on the Ethereum network. (rather than having to build their own blockchain)
- The Ethereum network is ultra-fast, and Ethereum transactions settle in 20 seconds or less.
- The Ethereum network is currently the leading smart contract platform. (more about that later)
- Anyone can tokenize ownership of real-world assets and put them on the Ethereum blockchain.
- Any currency that is built on top of the Ethereum network (ERC-20 tokens) can be stored in a plain old Ethereum wallet.
- Ethereum is one of the organisations leading the charge in autonomous organisation technology.
This sounds like a lot of information, but it will be much easier if we break it down.
What Are Smart Contracts?
A Smart Contract is a computer protocol intended to digitally facilitate, verify and enforce the negotiation or performance of a contract.
- Smart Contracts allow the performance of credible transactions without the need for third parties, such as banks, financial institutions, or governments.
- These algorithm-based contracts are traceable, transparent and irreversible – essentially placing the Ethereum supercomputer in the position of authority, rather than a government or law firm.
- While a standard contract outlines the terms of a relationship (usually one enforceable by law), a Smart Contract enforces a relationship with cryptographic code and programming.
Smart Contracts are essentially like standard traditional contracts, however, Ethereum’s network and programming infrastructure is optimized to carry out the rules of Smart-Contract automatically, by mechanically executing events when certain conditions are met.
The utility for these cyber-agreements is growing larger daily, with a number of tech firms working on optimising the functionality of these contracts for the application of mortgages, transactions, copyrighted content, employment contracts and much more.
Ethereum is just the largest and most-established blockchain built for Smart Contracts out of the hundreds of organisations with the shared goal of revolutionising contracts. But It is generally agreed that Smart Contracts is expected to make a profound impact on the way we currently commit to and execute contracts as a whole.
What can Smart Contracts do?
Ethereum, in this case, is just the technological infrastructure for Smart Contracts, much like what Windows is to your PC. Anyone can create their own Smart-Contracts or token built on Ethereum, just like anyone can create their own computer program or application on Windows software. It’s hard to imagine a world without lawyers, judges and real estate agents, but with Smart Contracts on the table, the supercomputer can facilitate all these transactions without the need for third parties, eliminating the extra cost and risk of human mistake.
The possibilities of ‘Smart Contracts’ are endless, but with the integration of digital identity, these endless possibilities rise to a whole new level. Smart Contracts in combination with digital identity provide a new level of reality for self-managed autonomy, where Smart Contracts can be used to transfer and distribute ownership of assets, value, intellectual property, wills, land deeds, equity, and much more. Basically, anything that can be transferred via contract through human interaction can be replicated through Smart-Contracts. – What a time to be alive.
So who’s running Ethereum?
Like Bitcoin, Ethereum’s supercomputer network is run by mass collaboration powered by collective self-interests. This is where an individual or organisation will mine Ethereum for the sake of profiting for themselves, with the incentive being the small chunk of Ethereum they will receive for lending out their computational power to facilitate transactions.
They are essentially leasing out their CPU to the Ethernet in exchange for some of their own ETH, working as a single node that interacts and collaborates with all the other nodes/miners in the system. This results in a worldwide supercomputer that can be powered from anywhere in the world that has internet and electricity – forming a truly distributed network and technological infrastructure for the Ethereum platform.
What is the best Ethereum Wallet in NZ?
Choosing a safe cryptocurrency wallet is in your best interest, so that’s why we wrote this article on wallets that will provide you with a solid base on what Ethereum wallets you go with.
Should I buy Ethereum?
Since the birth of Ethereum on 30 July 2015, ETH’s price has fluctuated from ~$0.30 to over $1300, with a current price of $352 NZD. The value of ETH and the Ethereum network is enormous, and many commentators hold that the current price of ETH is under-valued. There have been many Ethereum price predictions projecting a $15,000 Ethereum price by 2025, but it is impossible to say for sure where the ETH price will go, or if it will even increase at all.
ETH has good prospects, both as a platform for Dapps and Smart Contracts but also as a globally usable digital money/store of value. However, ETH is far from a mature product, and if wide adoption does occur it could be years away – or alternatively if Ethereum doesn’t master Smart Contracts, someone else will do it instead.
How to buy Ethereum in New Zealand?
Your best bet for buying Ethereum in NZ would be through Easy Crypto NZ; https://www.easycrypto.nz/
- Easy Crypto has the best Ethereum broker prices in New Zealand
- Our trading system was designed to be used by anyone regardless of their crypto trading experience
- Typically all orders are delivered in less than 2 minutes
- We are the only crypto broker in NZ to have a 100% funds safety guarantee
To learn about the technology making this all possible, click here for more information on the blockchain.