Cryptocurrency derivatives trading is a new trading area that many daytime traders are interested in. While several people hold some kind of experience and knowledge of this areas，but for the detail information about what is Ethereum and how do Ethereum Works people may still know very little. So we will present you with a brief introduction of these.
What is Ethereum?
Ethereum, started in July 2015, is a decentralized network that runs so-called “smart contracts”. Smart contracts are “self-executing” agreements or requests that run specifically as programmed without any probability of downtime (for instance this blockchain is never broken, it always keeps running), suppression, fraud or third-party action.
As such, Ethereum has an ability that works far surpassing that of simple P2P digital coins equivalent like Bitcoin. In simple words, it is much similar to how a smartphone works on top of which software utilization can be done.
Honestly speaking, the Ethereum network itself is not only a cryptocurrency. But also, similar to different running blockchains, Ethereum needs a sort of on-chain advantage to incentivize performance validation within the network (i.e. a form of payment for the system joints that execute the processes). This is where Ethereum’s original cryptocurrency “ether” (ETH) comes into action.
Ether seems to not only provide clever contracts to become true on the Ethereum network (i.e. it services them), but it additionally functions as an advanced kind of a platform(particularly in the circumstances of ITOs, as many profits are obtained including ether).
How does Ethereum Work?
1、Ethereum works on an extensive, permissionless blockchain
Just like Bitcoin, Ethereum is a famous case of an open, permissionless blockchain. Anyone can take part in or leave the Ethereum network at will, without needing to be pre-approved by another third party.
2、Ether (ETH) is convertible within the fiat money system
Ether (ETH) can be purchased with and transformed into fiat money on various cryptocurrency platform (e.g. Coinbase, Kraken, …).
3、Ether (ETH) is an advanced form of stock of value
Like Bitcoin, ether (ETH) is being used and believed to work as a system of payment by an increasing amount of traders (e.g. TapJets, Overstock, …). It is consequently also an advanced form of stock of value.
4、Ether (ETH) is also a pseudo-anonymous coin
The same as Bitcoin, ether (ETH) can be classified as pseudo-anonymous or pseudonymous money.
Thanks for your time, after reading this article, you may have a deeper understanding of what is Ethereum and how does Ethereum works？ It was an honor to share the experience of cryptocurrency derivatives trading with you. For more information, please follow the nearest update information of Bybit.
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