WHAT IS ETHEREUM
Ethereum is the second ranked cryptocurrency. Unlike bitcoin that could only execute limited set of orders like, who sent the money and to whom, Ethereum could do complex orders and transactions. Ethereum was launched in 2014 as a do-it-yourself platform for decentralized system. The native token of Ethereum is ETHER or ETH.
Ethereum is a blockchain platform that was built by a programming language called SOLIDITY. It is a decentralized ledger that is distributed and used for verifying and recording transactions done on the Ethereum platform.
The ethereum platform does not only support its native token, it also has features that allow software developers to build games and applications called dApps.
Ethereum Blockchain is simply explained as a blockchain technology that houses digital money and application programs.
The most interesting part of the ethereum is that it is open to all software developers to explore. It Is also used for global payments, where you could send, receive and borrow funds through the ethereum decentralized finance(DeFI)
The ethereum blockchain can also be linked to decentralized Internet systems to create a decentralized Internet network.
The Ethereum Web 3.0 is the next generation web that supports decentralized applications like decentralized exchange (DEXs), decentralized finance (Defi) and decentralized applications (DApps)
Smart contract is similar to the services of the kickstarter, but it eliminate the third party involvement. Kickstarter would help you raise funds for your project from the people who believe in the project and if the amount needed to execute the project is completed, kickstarter will transfer the money to you. If the amount raised didn’t meet up with the stipulated amount needed to successfully fund the project, the money would be returned to the donors.
Smart contract is similar to the real contract, but it’s a digital contract and it Eliminates the third party. The donors would trust the Smart contract because it is integrated into the blockchain.
The Smart contract is a piece of code that does something for something if something happens. It is referred to “if this, then that” it is written with a programming language called SOLIDITY.
THE PURPOSE OF SMART CONTRACT
You could write a piece of code on the Smart Contract that says: if you give me 5 ETH, I will give you 20 BAT. All you need do is to allow people to donate ETH to a certain address, and if reached the stipulated amount, the Smart Contract will give the donors 20 BAT.
THINGS THAT MAKE SMART CONTRACT BENEFICIAL TO PEOPLE
The factors that makes Smart contract beneficial to the people are
1) They are immutable
This means that the Smart contract cannot be tampered with and this increases the level of trust in the contract. If there is a bug in the Smart contract, it would remain inefficient forever. If such thing occurs, you will inform the other party to neglect it and introduce a new one you have created to them.
2) They are distributed
This means that their is no discrepancies. You cannot hire a lawyer if something goes wrong. It’s a contract that exist online and it will be automatically execute if certain conditions are met. It is piece of code designed to remove human errors and issues. It is a financial agreement nobody can argue because it is distributed for everybody to have access. For instance, you could borrow $5 million with no money down with a Flash Loan. This is only possible on the ethereum platform. You will need to create a Smart contract with an order to pay back at the same minute that it was borrowed. You could buy large amount dogecoin for 50 cents on coinbase and sell for 55 cents on binance, pay back the $5 million with some interest. You could make thousands of dollars in a minute via the Smart contract. The interesting thing is that Smart contract could run itself. It will simulate what you have programmed to see if you could actually pay back the lender. It can be use to build insurance company, token switching, to buy house etc.
HOW TO CREATE ETHER TOKEN
The ERC-20 token stands for ethereum request for comments. The ethereum blockchain allows you to create your own cryptocurrency or token that could be purchased with ETHER.
The ERC-20 token is a standard that specifies how the token works, their compatibility on other platforms like the exchanges. Ethereum allows you to create your own token without creating a blockchain. The ERC-20 is a standard on which the Smart contract works. For instance, if my token is known as Lens token with symbol LTK, and going to be 100 thousands of the token in existence, the Smart contract will keep the records of the attributes of LTK. It also keep track of who owns it. You can transfer it from one account to another as payment. It can be bought and sold in exchanges.
TOP ETHEREUM TOKENS
The top ERC-20 Tokens that could be traded inorder to make money are
2) Tether (USDT)
3) Shiba Inu( SHIB)
4) wrapped bitcoin (WBTC)
9) Loopring (LRC)
10) Basic Attention Tokens (BAT)
My pick is CRO, because it showed a lot of potentials. Currently, it is traded at $0.71, has a market cap of 19 billion and ranks 13th in market cap rank. It will be wise to hold CRO token for future gain. CRO is a native token of Crypto,com, a Singapore based crypto exchange platform.