What is Ethereum? What to know before investing

At its core, Ethereum is a decentralized platform that runs smart contracts:

Applications that run exactly as programmed without any possibility of fraud or third-party interference.

Ethereum uses a cryptocurrency called ether for payments.

Ether can be transferred between accounts and used to compensate participant nodes for computations performed.

Ethereum was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer.

Development was funded by an online crowdsale that took place between July and August 2014.

The system went live on 30 July 2015 with 11.9 million coins "premined".

In 2016, the DAO, a decentralized autonomous organization based on the Ethereum platform, raised $150 million in a record-breaking crowdfunding campaign.

So what's the big fuss about?

Let's take a closer look.

When most people think of Ethereum, they think of the Ether currency.

While Ether is certainly important, it's only one component of the Ethereum platform.

The Ethereum platform also enables developers to build decentralized applications (apps example).

These are applications that don't rely on a third party to function and that can't be censored or taken down.

One of a Dapp is Slock.it

Slock.it allows you to rent out anything you own without having to go through a middleman.

For example, you could rent out your car using Slock.it without having to go through a rental company.

Another example is Augur, which is a decentralized prediction market that allows users to bet on the outcome of events.

Ethereum has a lot of potential to change how we use the internet.

In addition to being a platform for decentralized applications, Ethereum also allows for smart contracts.

Smart contracts are contracts that are automatically executed when certain conditions are met.

For example, you could create a smart contract that automatically pays your rent each month once you've paid your landlord online.

The Ethereum platform is still in its early stages, but it has a lot of potential.

If you're interested in learning more, check out our guide on how to buy Ethereum.

What is Ethereum?

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.

What to know before investing?

Here are some things you should keep in mind before investing in Ethereum:

1. Ethereum is still a young technology and its future is uncertain.

There is no guarantee that it will become a popular cryptocurrency.

2. Ethereum's price is highly volatile and can go up or down significantly in value.

Investing in Ethereum is risky and may not be suitable for all investors.

3. Ethereum is still in development and has not been released yet.

You should only invest the money you are willing to lose if the project fails.

4. Ethereum is not backed by any government or central bank and is not regulated by any financial authority.

There is no guarantee that your investment will be safe.

5. Ethereum is a new technology and there is no established infrastructure around it yet.

There may be unforeseen problems that could affect the value of your investment.

6. Ethereum is still in development and its features are subject to change.

You should research the project thoroughly before investing in it.

7. There is no customer support for Ethereum and no one to help you if something goes wrong with your investment.

Be sure to do your own research and understand the risks involved before investing in Ethereum.