1 year ago by cryptoasia
Bitcoin is currently the world's most popular digital currency. It is the first implementation of a blockchain-based, decentralized electronic cash system. The second most-popular digital currency in the world is Ethereum. Ethereum takes Bitcoin technology and expands it. In this article, we explain some of the basics of Ethereum. Many links are provided throughout to help you get started with Ethereum in Cambodia.
Ethereum is a decentralized, trustless platform that facilitates something called "smart contracts." Smart contracts are computer programs that define the conditions regarding how digital currencies are exchanged. The transactions are stored on a public accounting ledger called "the blockchain." Blockchain technology eliminates the need for trust between parties because the data is shared by all participants on the network. Since transactions are publicly stored and verified they are nearly impossible to forge. Co-founded by Vitalik Buterin, the open-source Ethereum protocol code is maintained by hundreds of developers around the world. As of November 2017, over 17,000 different tokens have been created on the Ethereum network, each of them uniquely designed for a specific purpose. Ethereum, then, is like the smartphone of digital currencies.
Tokens are the unit of account used by smart contracts. As we explained in our interview with the [Phnom Penh Post](http://ICOs are like their own bitcoin. They’re actually tokens that are bought and sold on a digital currency platform called Ethereum, which is like the smartphone of digital currencies. You can launch apps on Ethereum, the equivalent of which are tokens, and tokens are basically a cryptocurrency with its own set of rules. If you’re a company that wants to raise capital, you can issue these tokens on the Ethereum blockchain and it’s similar to any other form of equity sale. The tokens themselves have value, and the company’s performance affects the price of the token. Selling tokens is very similar, then, to issuing stock.), an ICO (Initial Coin Offering) establishes the tokens that trade under the conditions defined by a smart contract. Many new tokens are issued in an ICO by businesses who want to raise equity capital. The tokens themselves have value, and the company’s performance affects the price of the token (although many tokens are standalone). Selling tokens, then, can be similar to issuing stock.
Ether is the name of the digital currency which trades on the Ethereum network. You must have it if you wish to purchase tokens or participate in ICOs. There are several ways to acquire Ether in Cambodia, such as:
If you don't store your Ether at an exchange, you must have a wallet. There are many options, including:
[For a brief overview on Bitcoin wallets click here.]
In a previous article, we listed the several places that accept Bitcoin in Cambodia. Most, if not all, of those place will be willing to accept Ether as a payment medium. Listed below are several other ideas on what you can do with your Ether:
Use TenX. Currently one of the most interesting Ethereum projects, TenX gives you the ability to spend your cryptocurrencies anywhere that VISA is accepted
Buy Tokens. Support companies and projects that are building on the Ethereum platform
Generate Tokens. As a developer, you can deploy your own smart contracts on the Ethereum network
There you have it! You should now have a basic understanding of Ethereum and its related technologies. If you have any questions post them below. Or, better yet, download the Toshi app and message us directly with @cryptoasia and @samuel. Toshi is a messaging app as well as an Ethereum wallet for quick and easy transfers. We highly recommend it.