Ethereum network

"Crypto" - or "crypto currencies" - are a type of software system which provides transactional functionality to users through the Internet. The most important feature of the system is their decentralized nature - typically provided by the blockchain database system. Blockchain and "crypto currencies" have become major elements to the global zeitgeist recently; typically as a result of the "price" of Bitcoin skyrocketing. This has lead millions of people to participate in the market, with many of the "Bitcoin exchanges" undergoing massive infrastructure stresses as the demand soared.

The Ethereum coin is known as ETHER. The main difference from Bitcoin is that Ethereum uses "smart contracts" which are account holding objects on the Ethereum blockchain. Smart Contracts are defined by their creators and they can interact with other contracts, make decisions, store data, and send ETHER to others. The execution and services they offer are provided by the Ethereum network, all of which is beyond what the Bitcoin or any other blockchain network can do. Smart Contracts can act as your autonomous agent, obeying your instructions and rules for spending currency and initiating other transactions on the Ethereum network.

Financial services are a ripe target for Blockchain projects because today's banking systems are still based on archaic ideas that have been faithfully and painfully digitized, and because these systems are archaic, they are expensive to maintain and operate. Banks almost have a good reason to charge the high service fees they do - their systems are not efficient. These systems have many layers of redundant data, as everyone involved with a transaction has to have their version of the transaction details. And then there is the business of ensuring that there is a trusted third party to clear all these transactions - requiring even more versions of the same data.

Security is another thing that is of crucial importance whenever you are dealing with cryptocurrency. Since you will need to create and use several passwords for different accounts, it is suggested that you use a password manager. Make sure that you use a strong antivirus on your computer. A good firewall is also mandatory in order to ensure the perfect security of your data and online transactions.

With people flocking towards the riches dangling in front of them the scam artists are having a field day as well. Read articles, browse the forums, watch the bitcoin market, and research your costs and ROI before even considering investing anything. In my opinion, you should do this for a few weeks before putting any money into play. This is an extremely volatile market and an even riskier investment.