What is Ethereum Computing (What is the practical value of Ethereum)

08/14/2023 23:49 • AI & Tech Insights • 81 views

What is Ethereum computing? What is Ethereum’s computation, and what problems can it solve?

Bitcoin is a decentralized system that allows people to store, send, and receive value, and can run blockchain applications without sacrificing trustworthiness. However, for most people, they still need to understand what currency or data in the network is and how to use these encrypted digital assets for transactions (such as fiat currency).

Therefore, we can compare Bitcoin to a virtual commodity – a smart contract that can perform various complex tasks without the need to understand the key concepts or technologies behind it. But if you don’t know what Bitcoin is, don’t worry, because it is a highly volatile market behavior. So, do you want to understand how Bitcoin works? Let’s look at a case: when you own your ETH, it will affect the price of BTC, just like stocks; if other investors purchase BTC, then you would think it is a good thing… However, as the price continues to rise, this market is also becoming smaller and smaller. Now, you have seen BTC being used extensively for speculative activities. This is why BTC has a high inflation rate!

Of course, Bitcoin also operates based on the proof-of-work mechanism. Its main purpose is to maintain the economic stability and value by using Bitcoin-based economic incentives. Although Bitcoin itself has no functionality and practicality, its market value cannot be compared in many cases. As the supply of Bitcoin is part of a process driven by supply, that is, miners have been working hard to find new mining methods to increase their income. In order to reduce energy consumption and maintenance costs, Bitcoin also provides a more efficient means to benefit the entire industry. By harnessing the potential of blockchain technology, the future of this industry will be very bright, as the construction of this ecosystem will accelerate Bitcoin as a new payment system.

What is the practical value of Ethereum?

What is the practical value of Ethereum? We can explain it in one sentence.

Firstly, in the blockchain world, users need to use smart contracts to complete transactions. In other words, if you want to operate a digital asset, you must rely on the execution logic of smart contracts (such as Bitcoin). When you create a new account, the account will be required to run the Ether network, so that various tokens can be used as a means of payment. So technically: as long as a currency exists, its circulation will expand infinitely to the current level of tens of trillions; secondly, smart contracts can provide services to everyone, which is a very important indicator for the daily expenses of ordinary people. But because these information and processes are publicly transparent and there is no centralized institution involved, it is difficult to determine the authenticity of these electronic financial products and may even cause some irrational price fluctuations. This is the essence of the blockchain world, and it is also the foundation of future internet applications.

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What is Ethereum Computing (What is the practical value of Ethereum)

What is the practical value of Ethereum?

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