Why does Ethereum become a token (why is Ethereum called Ethereum)

Why Ethereum will become a token Ethereum is the most representative Cryptocurrency in the blockchain. It reached a historic high during the 2017 bull market. But after 2018, it fell back for a period of time. It was not until January 2019 that Ethereum emerged as an independent market: ETH rose from a low of $6 to a maximum of 12 cents (approximately 90000 RMB). Today, Ethereum has become a kind of “digital gold”, and its value has been constantly promoted. Why did Ethereum become a token? This article will help you understand why Ethereum is considered to be an asset with financial attributes – this asset is not only practical and can be used as a portfolio or means of payment, but also has programmable uses and functions, such as collateral, Stablecoin and other forms of investment opportunities. Through the analysis of Bitcoin, this paper draws the following conclusions:

1. Ethereum is a network system based on smart contracts, which aims to promote the connection between decentralized Internet services and applications

2. Ethereum does not exist on a single network, so it will not be controlled by anyone, because they cannot interact or compete with each other. However, as it is completely open source, there are no third parties involved. Therefore, any user can join and maintain Ethereum while maintaining its security and performance. So when you regard Ethereum as a distributed platform, a new protocol will be generated to support the operation and management of the platform. That’s why I explain it this way. 1. Ethereum is the first blockchain that can realize decentralized applications, and its main feature is that its unique technical features make it more transparent. Currently, many projects are applications created on top of it, which are supported by blockchain technology and have formed interoperability between them. In addition, blockchain itself does not need to rely on central authorities to provide information, thus ensuring the security of the entire system. Therefore, Ethereum developers hope to create a set of tools suitable for people’s life by taking advantage of these advantages. Therefore, everyone in the Ethereum ecosystem should recognize the advantages of blockchain technology

2. “Deconfidence” is one of the main characteristics of Ethereum. Detrust “refers to writing transaction data into blocks, making the out of chain verification process easier to complete. Blockchain technology typically requires both parties to reach a consensus and perform a series of tasks. For example, if one party is willing to pay higher transaction fees, the other party may accept higher service fees, which makes blockchain more efficient than traditional banking. Therefore, the concept of “distrust” means that Ethereum can obtain more information without relying on intermediaries, providing funds to intermediaries, and worrying about hackers

3. The ERC20 standard on Ethereum provides a mechanism that can be freely exchanged in different exchanges, whether they use Ether or not. For example, exchanges like Coinbase choose to issue tokens directly. Why is Ethereum called Ethereum

According to Coindesk, Ethereum is a new Cryptocurrency launched by Evan VanNess, a blockchain technology developer, in 2017. Literally, this is a virtual computer network system based on blockchain technology. Unlike other digital currencies such as Bitcoin, it uses the Proof of work algorithm However, smart contracts running on blockchain require a consensus mechanism to maintain and update the protocol layer, which means it does not rely on any centralized entity like Bitcoin. Therefore, Ethereum is a new type of network structure called “Ethereum”, which is constructed and issued using “Byzantine Fault Tolerant” (BFT) Cryptography. It is generated from randomly selected blocks. Each node will record the hash value of the whole process as an output, thus making the transaction more smooth.