Ethereum and the Smart Contract Revolution

What is Ethereum?

Ethereum is an open-source blockchain-based network and computing platform which allows building and running smart contracts and decentralized applications. Its whitepaper was written in 2013 by Vitalik Buterin, a young Russian-Canadian programmer, and then it was subsequently released by him, Gavin Wood and Joseph Lubin in 2015.

Ether & gas

Ethereum has a Proof-of-Work (PoW) consensus algorithm similar to the one used in Bitcoin. Miners work to earn Ethers (ETH), a token utilized as a form of payment for transaction fees and a range of services available on the network. There is also gas, the price mechanism used when performing a transaction or executing contracts in Ethereum. A higher gas price means users are more willing to spend, and the gas limit ensures that space on the blockchain is not wasted.

Dapps, Smart Contracts & ERC-20

Decentralized Applications (Dapps) are designed to avoid any single point of failure. They connect users and providers directly, can’t be owned or shut down by anyone. Dapps have been bringing blockchain technology ever closer to our everyday life. A smart contract is code that enables automatic negotiation, fulfillment, and execution of agreement terms, which allows firms to have transparent and efficient relationships with customers. They can be written in several programming languages, among which Solidity is the most popular. Ethereum Request for Comment, 20 (ERC-20) is a set of standards that contains basic functions a token should implement to become a cryptocurrency of its own on the Ethereum platform.

Where to store Ethers?

There is a number of wallets that allow you to keep and manage Ethers, but it’s important to make the right choice. Whether you are a security expert or a brand new user, with our Magnum Wallet you can send, receive, store and trade your digital currency. Our various features such as a built-in instant exchange, support of hardware wallets and a neat user-friendly interface will make managing digital assets easier than you would imagine.