While Bitcoin started the crypto revolution it could be argued that it was Ethereum that took things to another level. If you just look at the prices of these two main cryptocurrencies you won’t really be able to grasp the whole story. The Ethereum blockchain has spearheaded the modernization of a true decentralized marketplace. That’s about as technical as we’re going to get. One of the things that keep certain folks who could make good money on the Ethereum blockchain from doing so is a lack of understanding of how things work. What is the Ethereum blockchain? Here is a down-to-earth simple explanation of how things work. Visit https://saddle.finance/ to learn more.
The Ethereum Blockchain & The Creation of ETH Tokens
This is essentially the process that more people know about. It’s certainly one that has stumped many folks, even those who are well versed in the traditional financial system. With this in mind, we’re going to try and explain the process as simple as we can. The Ethereum financial system if you will has Ether or ETH as its main coin, and it’s what makes everything go. In this case, just like with Bitcoin ETH is created or issued through the process called mining. What this is, is a process that is handled by folks with supercomputers that solve complex equations to be able to essentially unlock ETH tokens given to them as benefits.
These miners are the people who provide the upkeep of the blockchain itself and ensure that all of the transactions that are made within the Ethereum ecosystem end up on the blockchain. It’s like a massive digital registry that is forcefully being updated with data. If you’re lost at this point, you may find comfort in knowing that you don’t have to be a miner or own a supercomputer to get in on the action. There are multiple ways to be able to invest in Ethereum.
How It Created A True Decentralized Financial System
What really changed the game, opening a ton of investment opportunities were smart contracts. Smart contracts are lines of code written within the Ethereum blockchain. This gave birth to full apps that are now running completely within the Ethereum blockchain. Many platforms that work within the Ethereum ecosystem have themselves become almost financial institutions within the decentralized markets. Many of them give their users an opportunity to invest in the platforms themselves and earn dividends from their holdings in ETH.
Through liquidity pools any investor can become a financier for an online platform. There’s also the whole NFT world that essentially runs as smart contracts within the Ethereum blockchain. Smart contracts essentially allow anyone to write out a set of rules and process transactions following those rules. This is the simple concept that has given birth to multiple industries and investment opportunities within the cryptoverse. Something that wasn’t and isn’t necessarily available within the Bitcoin blockchain. Yes, the technical logistics if you will of the whole ordeal can get complex. In short, what has been created is a truly decentralized exchange banking system.