If you are interested to the previous posts of this series, check it out here:
What is it?
Ethereum is a decentralized virtual computer, which purpose is to develop and manage Smart Contracts. It's virtual because it is a computer that resides in the network, made up of all the other computers present in the Ethereum network. Decentralized because no one can attack, censor or control it. From these few lines it is immediately clear that Ethereum is much more than a cryptocurrency as it is understood by newbies. Not to mention the fact that, technically, the virtual currency is called Ether. When we want to give a definition of Ethereum we must mention both Smart Contracts and Ether. Smart Contracts work in the Ethereum network and are implemented using a programming language (for this reason they are also called software). Smart Contracts are based on certain clauses and conditions and only work if these are reflected on a real level. Their main features include total autonomy from any intermediary (lawyer or notary) and security (the data contained within is encrypted). Ether is the Ethereum cryptocurrency, purchased by network participants to pay for the use of computing power without which Smart Contracts would not exist. To use a metaphor, Ether is the petrol that powers a custom-built car named Ethereum.
How does it work?
Ethereum works through a blockchain, where all the operations carried out are stored in a public register. Each new block before registration must be validated by the other users participating in the platform. The Ethereum network is characterized by a decentralized virtual computer, also known by the name of EVM (Ethereum Virtual Machine). In order to function, the network needs (real) computers kept constantly on, which give the network part of their computing power. In turn, computers need to acquire energy to perform their function. The "fuel" of the platform is represented by Ether (the digital currency of Ethereum), which is essential for executing smart contracts.
Where to store it?
To store Ether, an Ether wallet is required. There are 5 different types of wallets: online wallet, desktop wallet, mobile wallet, paper wallet and hardware wallet. Each type of wallet works like an account to store the Ether and allows both to send Ether to other wallets and to receive it from others. The difference between the different types of wallets lies in the way they protect private keys (essentially the password that allows you to transfer Ether from your wallet).
Pros&Cons
*DISCLAIMER* These lists are subjective, it depends from person to person
Pros
- Innovative blockchain
- Design of Smart Contracts
- Proof of Stake (PoS) algorithm with Eth 2.0 update
Cons
- High inflation rates (will be solved with Eth 2.0 update)
- Stagnant ETH Token Price (hahah just kidding)
- Very high transaction fees (or gas fees)
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