This archive report was first published on 19 June 2020.
As of June 19, 2020, the world of virtual currency continues to fascinate investors and enthusiasts alike. With the rise of cryptocurrencies, it's essential to understand the basics of these digital currencies. In this article, we'll delve into the world of Ethereum, a virtual currency with the highest market capitalization after Bitcoin.
Ethereum is a digital currency that uses encryption technology similar to Bitcoin, but with a new mechanism to enhance transactions. This is achieved through the use of smart contracts, which automate all transactions, making them smoother and safer.
But what exactly is a smart contract? Simply put, it's a program that processes a series of steps, such as application for service, payment of fee, execution of service, and payment for the person in charge of the service. This mechanism allows for increased safety and reduced costs.
For those new to Ethereum, it's essential to understand some key terms. The currency unit of Ethereum is ETH, with a value of 22,132 yen as of October 18, 2018. The unit of charge for sending Ethereum is called Gas, which is deducted from remittances from the virtual currency exchange.
Another crucial aspect of Ethereum is mining, which involves the collective effort of users to validate transactions and issue new units of currency. Miners are rewarded for their work, but the process requires high-performance computers and electricity bills.
As with any investment, it's essential to approach Ethereum with caution. With its high price volatility and risks, it's recommended to start with a small investment and choose only reliable sites for trading. By understanding the basics of Ethereum, you'll be better equipped to navigate the world of virtual currency.
