What Is Ethereum?
Ethereum is a decentralized ledger protocol and a platform that promises unprecedented opportunities for developers of applications running on blockchain, both financial and non-financial. Ethereum is a decentralized ledger protocol and a platform that promises unprecedented opportunities for developers of applications running on blockchain, both financial and non-financial. Ethereum, eth, cryptocurerncy, decentralized Ethereum is a platform for creation of decentralized applications running on blockchain, through the use of smart contracts. Since its launch on June 30, 2015 , it has been steadily gaining popularity . Starting from late January 2016, it has experienced a surge. In March 2016, within less than a year of its existence, that growth culminated in Ethereum achieving a record-breaking market capitalization of over $1B . Since then, the passions have subsided and Ethereum has declined a bit. However, the coin is now second only to Bitcoin on the cryptocurrency market capitalization list. - The graphical representation of how Ethereum has been killing it Bitcoin has undergone a similar explosion of growth in the late 2013 - early 2014, when its price has reached its all-time high . Launches of several hundreds, if not thousands of different kinds of alternative cryptocurrencies followed. Some of those altcoins have managed to reach a certain degree of success, but none of them have achieved the heights of Ethereum. The platform has even enjoyed Microsofts attention, when it announced the launch of Ethereum Blockchain as a Service (EBaaS) based on the Microsoft Azure platform back in November 2015. Now the reader might be wondering: why did all of that happen? Well heres the short version: Ethereum is decentralized, like Bitcoin, but is capable of much, much mo Continue reading >>
What Is Ethereum And How Does It Differ From Bitcoin?
What is ethereum and how does it differ from Bitcoin? The ethereum cryptocurrencyCredit:Bloomberg Ethereum is a rising star in the cryptocurrency world. It has quickly become the second largest digital currency in just over two years, booming in value and spurring the rise of hundreds of new rivals to Bitcoin. Launched in 2015, the value of ether (ethereum's currency)has increased rapidly. It suffered a set back before Christmas 2017, suddenly dropping from $850 to around $690 -a drop of about 20 per cent. Since then it has continued to show intense volatility, hitting highs of $1400 in January before slumping to less than $560. Last year sawmonths of increase in the price of Ethereum and rival cryptocurrencies like Bitcoin and Litecoin.At the start of 2017, one coin was worth around... Register or log in to view this and other Technology Intelligence articles. It's free and easy to do. Access brilliant stories, features and analysis Sign up to our exclusive Technology Intelligence daily newsletter Become part of our ambitious new Tech networking community Continue reading >>
Proof Of Stake Faq Ethereum/wiki Wiki Github
See A Proof of Stake Design Philosophy for a more long-form argument. No need to consume large quantities of electricity in order to secure a blockchain (eg. it's estimated that both Bitcoin and Ethereum burn over $1 million worth of electricity and hardware costs per day as part of their consensus mechanism). Because of the lack of high electricity consumption, there is not as much need to issue as many new coins in order to motivate participants to keep participating in the network. It may theoretically even be possible to have negative net issuance, where a portion of transaction fees is "burned" and so the supply goes down over time. Proof of stake opens the door to a wider array of techniques that use game-theoretic mechanism design in order to better discourage centralized cartels from forming and, if they do form, from acting in ways that are harmful to the network (eg. like selfish mining in proof of work). Reduced centralization risks, as economies of scale are much less of an issue. $10 million of coins will get you exactly 10 times higher returns than $1 million of coins, without any additional disproportionate gains because at the higher level you can afford better mass-production equipment. Ability to use economic penalties to make various forms of 51% attacks vastly more expensive to carry out than proof of work - to paraphrase Vlad Zamfir, "it's as though your ASIC farm burned down if you participated in a 51% attack". How does proof of stake fit into traditional Byzantine fault tolerance research? There are several fundamental results from Byzantine fault tolerance research that apply to all consensus algorithms, including traditional consensus algorithms like PBFT but also any proof of stake algorithm and, with the appropriate mathematical modeling, pr Continue reading >>
What Are The Advantages Of Ethereum Over Bitcoin?
What are the advantages of Ethereum over Bitcoin? Ethereum is the second of the worlds biggest cryptocurrencies. It was launched in 2015 and its success is growing. Here are some things that apply to the advantage of Ethereum and why some people see it as a better option from bitcoin. Ethereum has a high immune system where a third party cant make changes to any data. It has proven itself that is corruption free because of the impossibility to make any censorship. Apps connected to Ethereum rarely, almost never go down and cannot be shut down. You can use ethereum for fundraising with the use of smart contracts for various projects. It is easier to mine Ether tokens, it takes about 14 seconds compared to bitcoin where it takes longer than 4 hours The algorithm that is used to mine Ether tokens is called proof of work and successfully avoids hacker attacks. Still, the question about whether Ethereum can overtake Bitcoin at some point is a fierce debate which I think will continue to develop more in the year 2018. If you want to find out more about the advantages Ethereum has you can check these links below: Originally Answered: What are the main advantage(s) of Ethereum over Bitcoin? I think it's wrong to compare Ethereum and Bitcoin on the same scale , as they are targeted at different applications. Bitcoin is digital gold and as such is extremely conservative when it comes to changes to the consensus layer. Given that a lot of people and entities are deeply invested in Bitcoin, being extremely cautious here makes sense. Increasing block size is not just changing one parameter, as explained by Gavin Andresen, Bitcoin core developer ( Guided Tour of the 2mb Fork Gavin Andresen ) and requires hard forking the code, never before done in Bitcoin history. Ethereum, on the o Continue reading >>
What Is Ethereum? A Step-by-step Beginners Guide
If you want to know what is Ethereum and how it works and what it can be used for, without going deep into the technical abyss, this guide is perfect for you. Important Note: This guide assumes a basic understanding of blockchain technology. If youre unfamiliar with blockchain, check out this step by step introduction for beginners . Beyond Bitcoin & first generation decentralized applications Although commonly associated with Bitcoin , blockchain technology has many other applications that go way beyond digital currencies. In fact, Bitcoin is only one of several hundred applications that use blockchain technology today. [Blockchain] is to Bitcoin, what the internet is to email. A big electronic system, on top of which you can build applications. Currency is just one. Sally Davies, FT Technology Reporter Until relatively recently, building blockchain applications has required a complex background in coding, cryptography, mathematics as well as significant resources. But times have changed. Previously unimagined applications, from electronic voting & digitally recorded property assets to regulatory compliance & trading are now actively being developed and deployed faster than ever before. By providing developers with the tools to build decentralized applications, Ethereum is making all of this possible. At its simplest, Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications. Is Ethereum similar to Bitcoin? Well, sort of, but not really. Like Bitcoin , Ethereum is a distributed public blockchain network. Although there are some significant technical differences between the two, the most important distinction to note is that Bitcoin and Ethereum differ substantially in purpose and capabil Continue reading >>
Advantages Of The Ethereum-cryptocurrency
As we have seen, the ethereum was presented by Vitalik Buterin in 2014 and has since attracted increasing interest from the public. Its technology is comparable to that of the bitcoin , as it also uses a blockchain and therefore applies the principle of decentralization. But it exceeds this technology thanks to a programming language of its own and which allows to design applications that will also be decentralized. The currency generated by the Ethereum, Ether has known a very great craze and very rapid growth which in May exceeded the billion dollars. At the base Ether was not conceived as a crypto money, but was to serve as a means of payment facilitating the good operation of the Ethereum network: By remunerating those who would bring their computing power to the network and as a means of payment under the Smart contracts. Ethereum has thus generated a cryptocurrency which a priori resembles the bitcoin because both based on transactions verified by a network and working through proof of calculation which make it possible to pay the miners . But these two currencies have many differences, and these differences can give certain advantages to the Ethereum. -Bitcoin was limited from the outset to a fixed number of 21 million units making this currency a deflationary currency. -Ethereum on the contrary has no limit and is therefore inflationary. -The bitcoin works with blocks limited to 1MB, used to avoid filling the blocks with quasi-zero transactions that can jam the network. But this limit reduces in fact, necessarily the field of possibilities of the bitcoin. -Ethereum also has no limit in MB, but has a limit of gas, that is to say the cost required in Ether to ensure the execution of a transaction. This limit can be increased as new blocks are created by the vote Continue reading >>
Bitcoin Vs Ethereum: Driven By Different Purposes
Bitcoin Vs Ethereum: Driven by Different Purposes Ethereum has received a lot of attention since its announcement at the North AmericanBitcoinConference in early 2014 byVitalikButerin. The natural consequence of its rising popularity has been its constant comparison toBitcoin, the first virtual currency. It is important for investors to understandthe similarities and differences between BitcoinandEthereum. Bitcoin, the first virtual currency, was born seven years back. It introduced a novel idea set out in a white paper by the mysterious SatoshiNakamoto:Bitcoinoffers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government issued currencies . There are no physicalBitcoins , only balances associated with public and private keys. Over these years, the acceptance of the concept of a virtual currency has increased among regulators and government bodies.Althoughit isnt a formally recognized medium of payment or store of value, it has managed a niche for itself and continues to coexist in the financial system despite being regularly scrutinized and debated. The attempts to understandBitcoinmoreclosely resulted in the discovery of blockchain , the technology that powers it. Theblockchainis not just the hottest topic in theFinTechworld but also asought after technology in many industries. Ablockchainis a public ledger of all transactions in a given system that have ever been executed. It is constantly growing as completed blocks are added to it. The blocks are added to theblockchainin linear, chronological order through cryptography, ensuring they remain beyond the power of manipulators. Theblockchainthus stands as a tamper-proof record of all transactions on the network, accessible to all Continue reading >>
Ethereum Vs. Bitcoin
The AskMen Acquire team thoroughly researches & reviews the best gear, services and staples for life. Cryptocurrencies are on the rise and are beginning to function just like the US dollar, Swiss Franc, or Japanese Yen but in encrypted digital form. Using cryptography, a system of generating codes to secure information, holders of cryptocurrency can do business transactions digitally, while maintaining privacy and security on a global scale. Right now, there are two majorcryptocurrencies Bitcoin and Ethereum. These two currencies are fighting for dominance in the digital world. Both have their unique advantages and disadvantages. Both have the potential to change how we conduct global commerce and trade. To get a better idea of how they stack up against one another, we took a look at the benefits and flaws of Bitcoin and Ethereum. Bitcoin was launched in 2009 as an alternative to the worlds fiat currency system. It is the worlds first decentralized digital currency. Note: Fiat currency is the popular currency used by the majority of governments. This is a currency with full legal tender, but no physical commodity. Bitcoin is the first of its kind so it has taken the lead as the dominant cryptocurrency. This leadership role has given it an air of legitimacy as the preeminent digital currency of choice, since it has weathered the battles to be accepted, a battle it still fights to this day. Bitcoins launch was exciting and attracted many early-adopters who hoped to cash in on Bitcoin as it blazed new trails into the financial world. As a result, Bitcoin exchanges and trading services began to offer currency exchange, margin trading, data services, and liquidity for Bitcoin holders. As more of these specific financial centers sprung up, Bitcoin became more accepted, and i Continue reading >>
What Advantages And Disadvantages Does Ethereum Have Over Bitcoin?
What advantages and disadvantages does Ethereum have over Bitcoin? What advantages and disadvantages does Ethereum have over Bitcoin? What can you do with Ethereum that you simply cannot with Bitcoin? What price do you pay for these additional functionalities? I am just summing up some points found on various website and forums, thanks to original authors. While both the technologies focus on financial market and are based on a cryptographic blockchain with several programmatic features, they still differ significantly in many areas. For instance, Bitcoin is basically a cryptocurrency which was designed to replace the notes and coins in your pocket with a much reliable and easily available internet-based alternative. Whereas, Ethereum is a programmatic platform that can be utilized to build, deploy and implement smart contracts equally contributed by human and computer counter-parties. Both Bitcoin and Ethereum serve as currencies, they serve different purposes. Where Bitcoin is intended to be a general purpose currency, Ethereums Ether (its own internal currency) is used specially to finance the internal processes of Ethereum. In short, Bitcoin can be seen as an alternative currency whereas Ethereum is said to be the alternative law. All transaction processors come to an agreement in Bitcoin about what happened and when according to the transmission and storage of the Bitcoin value token. Whereas, the same is taken care of by Ether in Ethereum, along with the agreement about all processing done in all shared programs on Ethereum World Computer. Continue reading >>
Ethereum Vs. Bitcoin, Is One Cryptocurrency Better Than The Other? | Digital Trends
Cryptocurrencies can be a little confusing. Are they digital money or more like gold? Are they a new way to pay for things online or a way to store value? Those arent easy questions to answer when youre talking about hundreds of different cryptocurrencies, some old, some new, and some very different from the rest. When you focus Ethereum vs. bitcoin, though, there are some stark, obvious differences. Their age is the most obvious, with bitcoin having entered this world as the very first global cryptocurrency in 2009 and Ethereum only showing up in 2015 as a potential alternative. Although it is less proven than its predecessor, Ethereum does have a few nifty features which give it a lot more potential than its older sibling in some key areas. For the purpose of this guide, well look at two shared aspects of the cryptocurrencies: Their ability to act as a store of value and as transactional mediums. Well also take a look at some of the unique features which make them stand apart. If you want a more general look at cryptocurrencies, or the steps for how to buy , sell or trade bitcoin and Ethereum, have a read of some of our other guides. The most successful cryptocurrency for storing value continues to be bitcoin. As the most valuable coin in the world by quite some margin and the progenitor of the entire cryptocurrency revolution bitcoin has proven itself. Its far more recognized than any of its peers, and that makes it easier to buy, store, and sell. Thats not to say that Ethereum and its coin, Ether, have been ineffective. For such a young currency, Ethereum has proved to be one of the most popular. At the time of writing its market value and 24-hour trading volume are second only to Bitcoin. The actual monetary value for a single ETHhowever, is less than five percent Continue reading >>
Why Most New Tokens Are Ethereum Icos
The summer of 2017 has seen an explosion in new cryptocurrencies, with dozens of startups using digital currency as a fundraising mechanism. According to Bloomberg , initial coin offerings (ICOs) have raised over $1.6 billion in the past year, prompting many to speculate on the decline of venture capital as a model for funding new startups. The ICO explosion of the past year can be mostly attributed to the growth of the Ethereum blockchain , and the ease with which Ethereum permits the creation of new coins. Many startups have raised millions of dollars on Ethereum with little more than a concept and a white paper, circumventing the traditional routes for seed funding from accredited investors. While theres some controversy over how to classify and regulate these ICOs, its clear that a new alternative model has emerged for early stage funding. By and large, that model is based on the capabilities of the Ethereum blockchain. Creating an ICO: Limitations of the Bitcoin Blockchain An ICO is essentially a program that collects cryptocurrency from contributors and, after reaching a target amount, distributes newly created tokens to the ICOs contributors. In order to do so, the ICO needs a system that can be programmed to distribute the tokens without outside input. An ICO relies on common programming commands like conditional statements and loops to analyze, verify, and respond to incoming transactions. These pieces of code need to integrate with the blockchain on which the ICO is built. To understand Ethereums rise, its important to appreciate why its difficult to build new applications and currencies on the original Bitcoin blockchain. There are a few problems with the Bitcoin blockchain that make it a poor choice for ICOs. First, Bitcoin was designed as a currency system Continue reading >>
Ethereum Vs Bitcoin: What's The Main Difference?
12/20/2016 08:56 am ETUpdatedDec 06, 2017 Ethereum Vs Bitcoin: What's The Main Difference? While Bitcoin has long been dominant in the cryptocurrency scene, it is certainly not alone. Ethereum is another cryptocurrency related project that has attracted a lot of hype because of its additional features and applications. The first thing about Ethereum is that it is not just a digital currency. It is a blockchain-based platform with many aspects. It features smart contracts, the Ethereum Virtual Machine (EVM) and it uses its currency called ether for peer-to-peer contracts. Ethereum's smart contracts use blockchain stored applications for contract negotiation and facilitation. The benefit of these contracts is that the blockchain provides a decentralized way to verify and enforce them. The decentralized aspect makes it incredibly difficult for fraud or censorship. Ethereum's smart contracts aim to provide greater security than traditional contracts and bring down the associated costs. The smart contract applications are powered by ether, Ethereum's blockchain based cryptocurrency. Ether, as well as other crypto-assets, are held in the Ethereum Wallet, which allows you to create and use smart contracts. The system has been described by the New York Times as.. "a single shared computer that is run by the network of users and on which resources are parceled out and paid for by ether." Implement Smart Contracts With Your Own Cryptocurrency Ethereum allows you to create digital tokens that can be used to represent virtual shares, assets, proof of membership and more. These smart contracts are compatible with any wallet, as well as exchanges that use a standard coin API. You can copy the code from Ethereum's website and then use your tokens for many purposes, including the repr Continue reading >>
What Benefits Can Ethereum Offer Over Centralized Models?
Across every single layer of web development and technology, simplification is always the preferred route when evaluating two options. While thats a broad generalization, its true that when considering long term resources and general benefits of one option over another, the simpler product or service should win out most of the time . As Bitcoin, blockchain tech and now Ethereum have been proliferating throughout cutting edge early adopter circles, were seeing an early rush to be first-movers on capitalizing on the technology. Just about any app you can think of now that flows through a centralized server system could in theory become a Dapp (Decentralized Application). However, technology creators and advocates should objectively question whether Ethereums technology is right for them and if a blockchain or Ethereum based Dapp model actually holds benefits to their core idea over building a centralized model. What are the best examples of where decentralization and distribution trump traditional centralized models? Ethereum Smart Contracts ALWAYS Execute As Written Contracts of all types are written to be enforced and honored, however when the centralized model of having a contract written and managed by a lawyer or needing to be enforced by a judge or legal entity, the confidence that a contract will work as expected is not always there. Theres a sense of confidence when a business doesnt need to worry that their operations will execute as expected within the confines of their DAO (Distributed Autonomous Organization) or smart contract network. Whats more, the human and technological layers of enforcing contracts and operations arent needed as much anymore. Its expensive to keep employees within roles that are oriented towards ensuring that processes are happening as Continue reading >>
Dis/advantages Of Ethereum | Ethereum Use Cases
The blockchain is a wonderful, novel thing. But in order to know when a blockchain is the tool to fix a problem, it is important to understand what the blockchain does well. The data written on the blockchain cannot be changed. It can be updated, but the previous versions are still kept. In addition the details of the transaction (sender, receiver approximate time) are always recorded. What is stored on the blockchain is safe. No one has ever stolen from a blockchain wallet, without having the passwords. So protect those passwords. Ok, big proviso here. It is fair to say that data and Eth on the blockchain is not at all safe. Phishing scams are actively trying to steal your passwords and code written in Solidity is sometimes found to be flawed resulting in funds being lost or locked. The two multisig wallet incidents recorded here are good examples. But the underlying technology is secure and these weaknesses will be resolved as the technology matures The Ethereum Network is distributed amongst thousands of individual computers in a variety of countries. No individual, country or organization can control the blockchain Public: All transaction are view able by everyone. This is both up and down. Privacy is coming but if you want a fully private set of transactions, maybe Ethereum is not for you While a major development goal for Ethereum is speed, it will always be slower than traditional computer processes. Its distributed architecture drives this and I cant see it changing Every transaction takes gas, because it is requiring work from a number of computers Internet based. There is no offline Ethereum. No network, no Ethereum Storage is very expensive. While there is no limit to the size of data that can be stored on the blockchain, the price of writing the data can be Continue reading >>
Blockchain: A Very Short History Of Ethereum Everyone Should Read
Blockchain: A Very Short History Of Ethereum Everyone Should Read Opinions expressed by Forbes Contributors are their own. Even those who are not familiar with blockchain are likely to have heard about Bitcoin, the cryptocurrency and payment system that uses the technology. Another platform called Ethereum, that also uses blockchain, is predicted by some experts to overtake Bitcoin this year. Ethereum is an open-source public service that uses blockchain technology to facilitate smart contracts and cryptocurrency trading securely without a third party. There are two accounts available through Ethereum: externally owned accounts (controlled by private keys influenced by human users) and contract accounts. Ethereum allows developers to deploy all kinds of decentralized apps. Even though Bitcoin remains the most popular cryptocurrency, its Ethereums aggressive growth that has many speculating it will soon overtake Bitcoin in usage. While there are many similarities between Ethereum and Bitcoin, there are also significant differences. Here are a few : Bitcoin trades in cryptocurrency, while Ethereum offers several methods of exchange, including cryptocurrency (Ethereums is called Ether), smart contracts and the Ethereum Virtual Machine (EVM). They are based on different security protocols : Ethereum uses a "proof of stake" system as opposed the "proof of work" system used by Bitcoin. Bitcoin allows only public (permissionless or censor-proof) transactions to take place; Ethereum allows both permissioned and permissionless transactions. The average block time for Ethereum is significantly less than Bitcoins: 12 seconds versus 10 minutes. This translates into more block confirmations, which allows Ethereums miners to complete more blocks and receive more Ether. It is estimat Continue reading >>