Ethereum is a crypto platform based on blockchain technology and has quite the reputation for being the second ever created cryptocurrency after bitcoin. Ethereum has a native cryptocurrency known as Ether or ETH. The Ethereum platform supports not only ether but other decentralized apps (dApps). Ethereum is also known to be the originator of what is now known as Smart Contracts.
There are a lot of Decentralized Finance (DeFi) and other dApps that use smart contracts in conjunction with blockchain technology. This article will discuss what Ethereum technology and cryptocurrency are and where to get the best Ethereum buy in Canada.
How does Ethereum work?
Ethereum is like other cryptocurrencies as it is based on blockchain technology. A blockchain is a long chain of a block of transactions that every user knows of the blockchain. New blocks are added to the chain of the Ethereum blockchain to process recent Ethereum transactions and mint new ether coins or execute smart contracts for Ethereum dApps.
Ethereum is the largest and most well-established, open-ended decentralized software platform. Ether is used mainly for two purposes, namely, for trading as a digital currency like other cryptocurrencies, and it is used to run decentralized applications.
Advantages of building on the Ethereum network
The Ethereum network platform is known to be a flexible platform on which decentralized apps are built using the native solidity scripting language and Ethereum virtual machine. dApps developers that deploy smart contracts on the Ethereum network enjoy the diverse ecosystem of developer tooling and the established best practices that have come with the maturity of the pool.
This makes for a good user experience for the users of Ethereum applications. Good examples are wallets like Rainbow, MetaMask, and Argent. These apps all have simple user interfaces to interact with the Ethereum blockchain and smart contracts deployed on the platform. Furthermore, the Ethereum 2.0 under development provides a more scalable network on which dApps developers can build and deploy applications that require higher transaction throughput.
Ethereum Use Cases
● Decentralized Finance (DeFi)
DeFi is a network of financial applications that are built on blockchain technology. It is different from the traditional financial networks because DeFis are open and programmable. The decentralization feature is also a fundamental difference. This means that they operate with no central authority, and they enable developers to offer new methods of payments lending, trading and investing.
In addition, DeFis uses smart contract distribution systems, allowing users to quickly build secure decentralized financial applications. A good example is the upward trend of DeFi companies coming up with products that support peer-to-peer lending and borrowing activities, interest-earning cryptocurrency holdings, trading via decentralized exchanges, and many more innovative ideas on digital finance. Examples of DeFi platforms include MakerDAO, UniSwap, and Aave.
● Non Fungible Tokens (NFTs)
NFTs are described as unique and indivisible digital assets that represent real-world objects like arts, music, game items, and videos. In other words, owners of these real-world assets can use NFTs to tokenize their work to make it unique, which can be sold later on for for-profit, and the ownership changes to that of the new buyer.
The ownership information of an NFT item is recorded and maintained on the blockchain network. NFTs are gaining popularity in the crypto space, especially in the gaming world, allowing interoperability between gaming platforms.
How you can buy Ethereum in Canada
Buying Ethereum in Canada is the same as purchasing any other type of crypto coin across the globe. There are 3 common means of buying Ethereum in Canada, they include:
1. Ethereum ATMs
The crypto space has come a long way ever since the first was launched in 2009. Today, there are crypto ATMs where you can purchase crypto coins that will be transferred to your crypto wallet. The Ethereum ATMs are better suited when you want to buy a small amount of Ethereum.
To buy Ethereum, you must own a crypto wallet to use this means. First, you will need to scan the QR code of your wallet using the ATM’s camera. This serves as a form of identification. Then you complete the transaction by putting your money and confirming the amount of Ethereum you want to buy with the machine. The Ethereum will be transferred to your crypto wallet after a few hours.
2. Crypto exchange platforms
3. Peer to Peer exchanges
Peer-to-peer exchange platforms are another way of buying Ethereum. They are known for their anonymous feature by connecting you directly to another crypto investor who wants to sell Ethereum. It is like a marketplace where you can select from a list of sellers to buy Ethereum.
This platform also offers different payment options like Paypal, bank transfers, and debit/credit cards. You can also exchange other crypto coins for Ethereum on this platform.
Ethereum is one of the major cryptocurrencies in the crypto space today. It has the reputation of being more than just a digital currency like bitcoin. It supports several DeFi transactions and dApps, making it a valuable coin with relevant use cases. However, its value is subject to the usual volatility in the crypto space. Therefore, you still have to watch out for market trends before investing in the coin.