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I am not a fan of cryptocurrencies at all... In my opinion their purpose is just gambling with extra steps. So I also never really looked into them.

But recently I started reading about Ethereum and it started to get my interest, and is even getting me a bit hyped...

If I understand it correctly, Ethereum is a new kind of internet. For example, when I will submit this question on Stackexchange, my webbrowser sends a request to Stackexchange's server which sends me a response. The problem being that I don't know what happens on that Stackexchange's server.

But if the Stackexchange-website would be on Ethereum, my browser would send a request to the Ethereum-network which has different nodes. Those nodes work would work together to keep the application online and validated.

My post would not be saved in a database which can be altered. But would be put in the blockchain which cannot be altered. Is that correct?

And another use of Ethereum are smart contracts. Which are a way of digitizing, automating and blockchain-validating contracts. I can for example make a smart-contract which says: "Person Foo gets to be the new owner of my house when he transfers 500 ETH to my wallet with address xxxx". When Foo follows the requirements and sends the correct amount to the correct wallet, the contract automatically detects that and gets validated. The contract cannot get altered because the code and progress is also saved in the blockchain, right?

Because fiat currencies are by definition centralized, the founders of Ethereum needed a kind of decentralized currency and thus they made ETH?

So the 'cryptocurrency' ETH is just the valuta used with the purpose of being used in the automated smart contracts? It's not meant to be a wannabe-replacement for fiat currencies but are just a small piece of the puzzel in the story of Ethereum?

O'Niel
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My friend - you've got it! Welcome to Ethereum <3

Yes, every single transaction taken place on Ethereum is stored on the immutable blockchain ledger.

Yes, Smart Contracts do work like that and cannot be altered, code-wise, after deployment. It can sometimes be influenced via calling and writing functions or even bad code being exploited.

ETH is the native currency of the Ethereum blockchain and is used to incentivize miners, pay gas fees and a lot more :) This currency also runs on the immutable ledger which makes it so secure.

YES - Ethereum is not meant to replace fiat. It's meant to create a word wide virtual machine (computer) that everyone on the entire planet can use - INSANNEEE!!!!!!!!

Some call it - The World Wide Computer

AvocadoChocolate
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So the 'cryptocurrency' ETH is just the valuta used with the purpose of being used in the automated smart contracts? It's not meant to be a wannabe-replacement for fiat currencies but are just a small piece of the puzzel in the story of Ethereum?

One way to see Ethers in Etheruem is that it is equity in the protocol. After Ethereum 2.0 goes live, anyone can stake ETH to further secure the network and then earn transaction fees. Some ETH also get burned in transactions. For example, Bitcoin does not have such feature for everyday Bitcoin holders to participate in the network and earn interest on their BTC.

Mikko Ohtamaa
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