Whether you’re a newcomer to the crypto world or an experienced investor, you’ve definitely heard about Ethereum. The first thing that comes to your mind at this point – it’s the second cryptocurrency I’ve heard about accepting Bitcoin and that’s enough reason to learn more about it.
What is Etherium – A Simple Example
The history of Etherium goes back to 2015, when Vitalik Buterin, finding various drawbacks of Bitcoin, decided to develop a more flexible and safe enginery. So, what is Ethereum? To make it simple it’s the technology that can change the world around you. Let’s start with a simple example. Imagine you’re creating a PowerPoint presentation in your Google Slides and making it available for everyone around the web. It’s very simple and convenient, as you can share your data with anyone in a second.
But, what if your Google Slides are hacked and you lose all this data. Now, you decide to store the data on an individual laptop, as you do not trust the cloud anymore. But, again someone can steal our laptop or it can break and you again lose everything. You’re in despair and decide to buy a notebook and pencils.
Now, you’re sure that your presentation is safe. Your problem is that you want the safety of the notebook and pencils combined with the speed and convenience of the world wide web. Here, comes the question – what has it to do with Ethereum?
Why do you need ETH?
Ethereum can keep personal data secure on the Internet not using Google or any other cloud storage. Google stores its information on servers and once its server is hacked all the information is lost. On the contrary, Ethereum uses the network of nodes instead of cloud storage, offering the decentralization you require to keep data secure.
These nodes use a shared database and the more nodes are there in the blockchain the more safety you get. Now, your presentation is not on the laptop or in the cloud. The node’s network holds your information. Your data does not appear in the nodes network until half of the nodes check whether it’s correct. Once the verification is complete, the data is placed on the blockchain, and no one can hack it.
In fact, the blockchain is decentralized here and works as a special app that is not a single server but is distributed across the entire blockchain. In case you perform any arrangement – for example, sell presentation to the client you’ll have to sign the so-called “smart contract”. You do not have to worry that your client will pay you. The contract takes place only when all its conditions are met As you have to hack half of the network, which in most cases is a too expensive operation.
So, as you see, decentralized apps and smart contracts guarantee the security of your data and can replace traditional transactions in any sphere. When you sell your house, perform the logistics of your products to another country, or place a bet on the next football match ETH will guarantee the safety of your operations.
Read More: Why People Invest in Cryptocurrency?
What is the Best Time to Convert ETH?
As you’ve understood Etherium is the technology of the future. It keeps entire data on your arrangements online forever. Hence, the ETH network is a good place to hold your money. The holding strategy is perfect for Etherium in the long run, but do not forget about active trading in a short-term period. This currency continues to strengthen and most investors watch etc to BTC rate to understand its strength in real-time and perform an exchange when necessary.
In a recent period, it strengths over BTC growth, but it does not mean you have to sell big amounts of ETH and buy Bitcoin. It means it’s a good time to make the reverse operation, expecting the future raise in price. When you choose the place for the exchange think about the security of the personal data in the first place and consider the anonymous exchanges offering fixed prices on the transaction to avoid the loss of crypto fluctuations in the periods of uncertainty.