What is #Ethereum and how do you buy it in South Africa?

What is #Ethereum and how do you buy it in South Africa?

What is Ethereum?

In many ways, Ethereum is similar to Bitcoin. It’s a public, peer-to-peer network or blockchain with its own digital currency called Ether. Ethereum was created by Vitalik Buterin in 2014 and the purpose of Ethereum is to be a platform on which smart contracts can be built and run.

Put very simply, Ethereum is intended to be a world computer.

Where Bitcoin stores a list of balances and transactions on its blockchain, the Ethereum blockchain is designed to store different types of data. This data can be accessed and used by computer programs running on the Ethereum blockchain. These programs are called decentralized apps, or dapps.

Developers around the world can build and run decentralized applications on the Ethereum blockchain. The purpose of these is to improve the industries of finance, personal information storage, governance and more by using the transparent nature of a blockchain.


Ethereum and the future

The number of possibilities that Ethereum can provide is promising. It may have the power to disrupt hundreds of industries, with more possibilities and interesting ideas coming to light every month.

Recently, the United Nations announced that it will be using Ethereum to distribute funds from the World Food Program to refugees. Use of the blockchain cuts out the need for a middleman, decreasing costs and increasing efficiency.

This means, we no longer have to only imagine a world where companies and services are always controlled by any single person, board or other central entity.

Known as a decentralised application, or ‘dapp’, next-generation developers are creating ground-breaking apps with the ability to replace everything that today requires a centralised form of leadership, from companies and services to governments.

Although this all sounds truly amazing, one must be cautious when considering Ethereum and many of the possible solutions punted, as this sentiment is usually attributed to the so-called ‘blockchain hype’. Once hype is over, attention generally shifts elsewhere.


How to buy Ethereum with Luno

To buy digital currencies like Ethereum with Luno you need to have done two things:

  1. Verify your identity

  2. Deposit money into your Luno wallet

Once that is done you simply need to do the following to execute a simple buy transaction:

  1. Sign in to Luno and select BUY from the top navigation on the home screen

  2. Choose the currency you want to buy: Ethereum

  3. Choose which currency you want to spend: Bitcoin or your local currency

  4. Enter the amount

  5. Review the transaction (which shows the exchange rate and the amount of Ethereum you’ll receive)

  6. Select NEXT, review the details and confirm

  7. 🎉  You just bought your first Ethereum!

After your buy order has completed, you can go to TRANSACTIONS from the MENU for more information.

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