Trying to know how to buy Ethereum? Let’s understand the basics of blockchain first!
Ethereum is a decentralized blockchain platform that establishes a peer-to-peer network that securely executes and verifies application code, called smart contracts. Smart contracts allow participants to transact with each other without a trusted central authority. A sender must sign transactions and spend Ether, Ethereum’s native cryptocurrency, as a cost of processing transactions on the network. Here’s an answer to your question: how to buy ethereum? Moreover, let us understand the basics of blockchain.
What is a blockchain? A blockchain is a unique database, behind the technology that powers cryptocurrency like Bitcoin. The blockchain database stores information differently from a typical database. As the name suggests, data is stored in groups or blocks which are then chained together. It is called a blockchain because the latest transaction block will contain details of the previous transaction block. New data enters fresh blocks and once that block is created, it is attached to the chain chronologically.
Different information can be stored in a blockchain, but it is mostly used as a ‘ledger’ for transactions. It is a type of distributed ledger technology (DLT). It is called a ‘ledger’ because it keeps track of everything that is happening, just as a ledger does. It is ‘distributed’ because a copy of the ledger is transmitted and stored with everyone, and is not a centralised network like in banks. Information once stored cannot be changed or tampered with even though everyone has access to the records. This is because they are in a highly coded form. If blockchains ruled, this is what would happen, you might get a world of no rupees, no credit cards, no digital payment gateways, and no banks!
Who conceptualized blockchain? The blockchain concept was launched by a pseudonymous person or group called ‘Satoshi Nakamoto’ whom no one has ever seen. Australian entrepreneurcum-computer scientist Craig Wright has claimed to be Nakamoto, but that is disputed. Top three features of blockchain Nakamoto proposed as a way for smoother transactions. One, it would be a system where trust can be obviated. There is no need for a third-party financial institution to provide an element of trust between buyer and seller who usually don’t know each other, especially in e-commerce. In blockchain transactions
entities may not necessarily know each other yet they transact with surety due to secure cryptography techniques. Two, unlike in cash, there is always a danger of ‘double spending’ of digital money. Technically, one could duplicate the digital money like a word file and spend it at two or more places. Nakamoto suggested a mechanism that would secure past transactions and also identify and stop double spending. Three, it would be a system for new money to be generated. Those who generate blocks for transactions also known as ‘miners’ get a part of the transacted amount as a fee. In addition, a miner also gets a designated number of bitcoins that the software is designed to send a sort of reward for adding a block.
This is how the blockchain software generates and releases new bitcoins into the system’s money supply. This is how bitcoins look to a human. The bitcoin will simply be represented by the symbol ‘BTC’. How does Nakamoto’s blockchain implement these features? Nakamoto’s proposed payment system depends heavily on cryptography or intricate coding. That is why digital currency like Bitcoin is referred to as ‘cryptocurrency’. Cryptography ensured secure transmission and storing of information by converting information into a random string of alphanumeric. This algorithm converts plain text to a unique string of alphanumeric.
How to Buy Ethereum in Canada? It ain’t a big problem to find a trading platform. However, you will have to find a xrp canada exchange, if you want to invest or trade in different cryptocurrencies like Ripple, Ethereum or even Bitcoin. Try Netcoins, for easier and smoother transactions in this digitized world. SOURCE CREDIT: https://medium.com/@bitcoinwalletcanada/tryi ng-to-know-how-to-buy-ethereum-lets-understa nd-the-basics-of-blockchain-first-f69063c9bf a9
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