What is Ethereum?

Sep 13, 2022
3 min read

This blog post will cover:

  • What is Ethereum?
  • Where did Ethereum come from?
  • What are the advantages of Ethereum?
  • What are the disadvantages of Ethereum?
  • How to buy Ethereum on SimpleSwap?

What is Ethereum?

Ethereum is not just another type of cryptocurrency. It is an open software platform based on blockchain technology that runs smart contracts. There is a currency that is used inside this system. It is called Ether.

What is Ether?

Ether is different from the most type of cryptocurrencies. We can describe it as a fuel to the Ethereum network. It allows smart contracts to run. In other words it validates blocks on Ethereum blockchain, which contains the smart contract code.
Users interacting with applications on this platform are supposed to pay on Ethers.

What is a Smart Contract?

Ethereum allows users to make Smart Contracts. By Smart Contract we actually mean computer code that can facilitate the exchange of anything of value. It is sort of a self-operating program that automatically executes when certain conditions are met. The important point is that Ethereum allows to create any kind of operations.
So two parties make a contract. They are anonymous, but the contract itself is a public ledger. Then the triggering event is hit and the contract executes itself.

Where did Ethereum come from?

History of Ethereum starts in 2013, when 19-year old Vitalik Buterin proposed a platform that could leverage blockchain to store and execute computer programs across an international network of distributed codes.
In 2014 Ethereum underwent crowdsale where more than $14 million was raised.
In 2015 the first experimental release was launched.
In 2016 the first major Ethereum upgrade was released.

What are the advantages of Ethereum?

  • Ethereum is a platform for executing complex contracts.
  • It allows users to create their own contracts.
  • Ethereum network is very rich in corporate clients.
  • The process of creating programs is simple. There are a lot of ways to plug into Ethereum. It is said that even people without technical background can create an application.
  • It is secure. Ethereum is considered to be well protected against hack attacks.

What are the disadvantages of Ethereum?

However, because of the peculiarities of Ethereum, it has a number of disadvantages.

  • It is slow.
  • Nobody can change contracts. After you write it absolutely nobody will be able to change it. It may seem to be a great advantage until you make a mistake in a code.
  • It is in a constant change. Some may believe this is a disadvantage, because you have to follow.
  • While with Ethereum platform you don't need a third party to make a contract anymore, but lack of certain background can lead to loopholes in contracts.

How to buy Ethereum on SimpleSwap?

Let’s say you want to buy Ethereum. What should you do? We suggest you go to the SimpleSwap homepage and follow the instructions below:

  • Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
  • Select ETH in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
  • Enter the Recipient’s Address. Ethereum will be sent to this address. Be careful and make sure you use the correct address.
  • Check all the information you have entered. If everything is correct click the Exchange button.
  • You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.

This is everything you need to know to buy ETH.

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