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 >>
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 >>
Why Is Ethereum Different To Bitcoin?
Ethereum differs from Bitcoin in 7 main ways: 1. In Ethereum the block time is set to 14 to 15 seconds compared to Bitcoins 10 minutes. This allows for faster transaction times. Ethereum does this by using the Ghost protocol. 2. Ethereum has a slightly different economic model than Bitcoin Bitcoin block rewards halve every 4 years whilst Ethereum releases the same amount of Ether each year ad infinitum. 3. Ethereum has a different method for costing transactions depending on their computational complexity, bandwidth use and storage needs. Bitcoin transactions compete equally with each other. This is called Gas in Ethereum and is limited per block whilst in Bitcoin, it is limited by the block size. 4. Ethereum has its own Turing complete internal code... a Turing-complete code means that given enough computing power and enough time... anything can be calculated. With Bitcoin, there is not this form of flexibility. 5. Ethereum was crowd funded whilst Bitcoin was released and early miners own most of the coins that will ever be mined. With Ethereum 50% of the coins will be owned by miners in year five . 6. Ethereum discourages centralised pool mining through its Ghost protocol rewarding stale blocks. There is no advantage to being in a pool in terms of block propagation. 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, 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 >>
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 >>
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 >>
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 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 >>
Pros And Cons Of The Ethereum Network | All Things Crypto
ICO Investigator | January 27, 2018 | Ethereum | No Comments Vitalik Buterin came up with the idea for the Ethereum network in 2013. Buterin is a software developer who worked with the bitcoin network and wanted to create a cryptocurrency that would offer its users more functionality compared to bitcoin. The crowdsale for the Ethereum network ran in July and August of 2014. The network went live a year later, on July 30, 2015. This article will introduce you to the main features of the network. Just like bitcoin, Ethereum network is based on blockchain technology, is open and decentralized, meaning that there is no single authority that processes transactions or makes decisions about what happens on the network. The network was developed by the Swiss organization called Ethereum Switzerland GmbH and a Swill non-profit called the Ethereum Foundation. One of the main differences between the Ethereum network and other blockchain networks is Ethereums ability to run and execute smart contracts. Smart contract are a way of using a cryptocurrency to create agreements between parties on blockchain networks. Smart contracts do not add capabilities to regular contracts. Instead, they allow parties to create contracts in a way that does not require a lot of trust or a presence of a third party. This means that two or more parties who do not know each other or do not trust each other can create a contract on the Ethereum network and the network will execute the contract as created, in a way that does not provide either party with an option of deceiving the other party. When parties enter into agreement on a blockchain network, the network will execute the agreement regardless of how the parties feel about it after entering into it. In the past, many of the contracts that people a Continue reading >>
What Are The Advantages And Disadvantages Of Ethereums Blockchain Architecture? Steemcreated With Sketch.
Bottom dollar: Ethereum is a platform, and thus will never be seen as efficient asother faster blockchains. Many complain at the speed of transactions for its cryptocurrency ETH, and I myself have had some laggy delays in transactions, as has @craig-grant who has talked about this in his videos. The roadmap instils major upgrades all the time it seems, and this includes moving Ethereum from a proof of work platform to a more efficient proof of stake one. This will be a tricky upgrade that will keep the developers busy, as well as the daily attacks that happen on the blockchain by rogue hackers. The worst thing I find about Ethereum is the lack of documentation to help people become Ethereum developers. I myself tried a few years ago and failed. Most of the online content is out of date and only covers the basics. To get to any depth within smart contracts is a tough gig. The Ethereum blockchain is such a new technology just like Steemit. Hopefully someone will put some Ethereum documentation together just like we've done with our FAQ section on Steemit - well done to Mr @timcliff on that one. Bottom dollar: Ethereum is a platform, and thus will never be seen as efficient asother faster blockchains. Many complain at the speed of transactions for its cryptocurrency ETH, and I myself have had some laggy delays in transactions, as has @craig-grant who has talked about this in his videos. I disagree with this statement entirely. ETH blocktimes are not slow at all ~15s. I am not sure what sorts of lag you are talking about but I send dozens of transactions every day and I would have conformations within a minute. Just because Ethereum is a platform does not mean it is inherently inefficient. The roadmap instils major upgrades all the time it seems, and this includes moving E 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'll answer the middle question from the White Paper . Bitcoin can allow simple scripting and a weak version of smart contracts. The scripting that you can do has these limitations (quoting from the white paper, where UTXO means "unspent transaction outputs") Lack of Turing-completeness - that is to say, while there is a large subset of computation that the Bitcoin scripting language supports, it does not nearly support everything. The main category that is missing is loops. This is done to avoid infinite loops during transaction verification; theoretically it is a surmountable obstacle for script programmers, since any loop can be simulated by simply repeating the underlying code many times with an if statement, but it does lead to scripts that are very space-inefficient. For example, implementing an alternative elliptic curve signature algorithm would likely require 256 repeated multiplication rounds all individually included in the code. Value-blindness - there is no way for a UTXO script to provide fine-grained control over the amount that can be withdrawn. For example, one powerful use case of an oracle contract would be a hedging contract, where A and B put in $1000 worth of BTC and after 30 days the script sends $1000 worth of BTC to A and the rest to B. This would require an oracle to determine the value of 1 BTC in USD, but even then it is a massive improvement in terms of trust and infrastructure requirement over the fully centralized solutions that are available now. However, because UTXO are all-or-no Continue reading >>
4 Amazing Benefits Of Ethereum Over Bitcoin
Bitcoin and Ethereum had always have strong competition between each party. Over the years, Ethereum was able to give Bitcoin a strong fight when it comes to winning peoples hearts and catching peoples attention. Some people that had a problem using Bitcoin always run to Ethereum. What is Ethereums advantage over Bitcoin? It Ethereum worth the risk? Lets find out! In todays contemporary world, the latest hype that is going on is the Crpto currency trend. People are confused between Bit coin and Ethereum and they actually do not know which surpasses the other. Though both the ecosystem is trying to do things in their own way, there are definitely some distinctive marks between the two. Various people are of impression that Bitcoin is better compared to all other currency platforms where they are token or digital asset. Bitcoin is one of the first major crypto currencies and has been around for nearly 9 years now. Ethereum is a very new currency platform that has been launched just a few years ago. Ethereum in comparison to Bitcoin offers some very interesting technological facts. The platform runs on smart contracts, which are a very new revolutionary technology, and it is being heard that this technology would also be part of the Bitcoin platform. Ethereum is technologically smarter while Bitcoin is not as sound and lacks decentralized applications. This makes Ethereum better than Bitcoin. Ethereum is technologically sound . Since Ethereum is a relatively new platform there is much more availability of coins. Bitcoin in comparison is a lot scarcer. Bitcoin is known to have a coin supply cap of 21 million BTC. Ethereum has around 92 million coins that are being circulated. People usually tend to overlook the fact that it will remain an inflatory currency. People tend to 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 >>