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Ethereum Advantages Disadvantages

How Is Ethereum Different From Bitcoin?

How Is Ethereum Different From Bitcoin?

{{article.article.images.featured.caption}} Opinions expressed by Forbes Contributors are their own. The author is a Forbes contributor. The opinions expressed are those of the writer. This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe Answer by Samantha Radocchia , Emerging Technologies Entrepreneur and Scholar, on Quora : The Primary Difference Between Ethereum And Bitcoin: A Beginners Guide Todays hype surrounding Bitcoin, Ethereum, cryptocurrency, and blockchain technologies rivals the dot-com bubble in the 90s. There is a lot of money pouring into this space, and it doesnt seem to be slowing down anytime soon. Unfortunately, while the masses may be able to say, Yeah, Ive heard of Bitcoin, a large percentage of people still arent quite sure what it isand are even more confused about Ethereum. If youre even remotely interested in this space, consider this your beginners guide. The easiest way to define Bitcoin is to call it a digital dollar. Thats really all it isminus all the formal regulations that come with a bank (which is what makes it such a disruptive concept). Its not a technology. Its not a company. Its your money, held in a digital form. Anyone can create an account to buy and sell Bitcoin through websites like Coinbase. The price of Bitcoin then fluctuates based on supply and demand. However, now people are beginning to convert their Bitcoin into what are called tokens, which companies issue during an ICO, or Initial Coin Offering, which allows people to invest in a company by purchasing tokens with their Bitcoin. Based on the supply and demand of those tokens, their price (just like a share of stock after a company holds an Initial Public Offering, otherwise known as an IPO) goes up Continue reading >>

Ethereum Vs Bitcoin: What's The Main Difference?

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 >>

Bitcoin Vs Ethereum: Driven By Different Purposes

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 >>

What Are Blockchain's Issues And Limitations?

What Are Blockchain's Issues And Limitations?

What are Blockchain's Issues and Limitations? There are treacherous passes in any technological revolution. Some people in the blockchain industry have pointed outthat blockchain has become overhyped, when, in reality, the technology has limitations and is inappropriate for many digital interactions. But through research and development, success and failure, and trial and error, we've learned the currentissues and limitations of blockchains. Blockchain technology involves an entirely new vocabulary. It has made cryptography more mainstream, but the highly specialized industry is chock-full of jargon. Thankfully, there are several efforts at providing glossaries and indexes that are thorough and easy to understand. Blockchains (like all distributed systems) are not so much resistant to bad actors as they are 'antifragile' that is, they respond to attacks and grow stronger. This requires a large network of users, however. If a blockchain is not a robust network with a widely distributed grid of nodes, it becomes more difficult to reapthe full benefit. There is some discussion and debate about whether this a fatal flaw for some permissioned blockchain projects. Bitcoin currently has notable transaction costs after being toutedas near free for the first few years of its existence. As of late 2016, it can only process about seven transactions per second, and each transaction costs about $0.20 and can only store 80 bytes of data. Theres also the politically charged aspect of using the bitcoin blockchain, not fortransactions, but as a store of information. This is the question of 'bloating' and is often frowned upon because it forces miners to perpetually reprocess and rerecord the information. If a blockchain is used as a database, the information going into the database nee Continue reading >>

Ethereum Vs. Bitcoin

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 >>

Why Most New Tokens Are Ethereum Icos

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 >>

Dis/advantages Of Ethereum | Ethereum Use Cases

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 >>

Pros And Cons Of The Ethereum Network | All Things Crypto

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 >>

Ethereum Classic | Beginners Guide

Ethereum Classic | Beginners Guide

Ethereum Classic is the original Ethereum blockchain and allows for the implementation of decentralized applications and smart contracts. The project was born out of an unwavering belief in core principles. It symbolizes the importance of a cryptocurrency being fungible and its blockchain immutable. The Ethereum and Ethereum Classic blockchains were identical all the way up to block 1920000. But then the infamous DAO changed a blockchain and cryptocurrency forever. A smart contract known as The DAO, the Decentralized Autonomous Organization was created on the Ethereum platform. The DAO was essentially a venture capital fund where investors would vote on how to allocate capital. The fund was so popular that it attracted roughly 14% of all Ether in existence at the time, raising 150 million dollars. The advantage and disadvantage of a smart contract is the autonomous execution. In this case, the smart contract had a design flaw that allowed someone to steal over 3.6 million Ether from The DAO. Vitalik Buterin, creator of Ethereum, and the majority of the community wanted to perform a hard fork that would roll the blockchain back to block 1920000 to before the hack so that funds could be returned. You can read more about the controversy and the decision to hard fork Ethereum here . After the hard fork to return peoples funds, the original Ethereum blockchain remained and is now known as Ethereum Classic or ETC. The community that continued to mine and support the original blockchain believe there should be no outside influence on what was supposed to be an immutable blockchain. Ethereum Classic has since blazed its own trail in the cryptocurrency world. In the long run, the Ethereum Classic community hopes there is value in taking the principled approach that code is law. Continue reading >>

Bitcoin Vs Ethereum Vs Ripple: Comparing The Cryptos

Bitcoin Vs Ethereum Vs Ripple: Comparing The Cryptos

Bitcoin vs Ethereum vs Ripple: Comparing The Cryptos The cryptocurrency niche is becoming somewhat crowded, and increasingly defined by a Bitcoin vs Ethereum vs Ripple war! These three cryptos can be considered the market leaders, with Bitcoin the most established, Ethereum the major challenge to its supremacy, and Ripple having made a big splash in a short period of time. Although each of these products has generated a significant amount of noise in their short lifespans, many people still only have a sketchy understanding of the differences between the major crypto players. So here ValueWalk gives a rundown on the differences between the three, and assesses how the Bitcoin vs Ethereum vs Ripple battle is shaping up . When making the Bitcoin vs Ethereum vs Ripple comparison, there are four key areas to look at. The first of these is scalability; namely, how many transactions can be conducted by the cryptocurrencies every second. It is in this area that we can instantly see a massive difference between the three, and begin to understand how Ripple has indeed made such a Ripple! While both Ethereum and Bitcoin are scalable, the latter achieves a maximum number of transactions of 7 per second, while Ethereum can deliver nearly double this with around 15 per second. These figures may sound as if they hand Ethereum a major advantage, but Ripple absolutely blows both of the major players out of the water in this department. Ripple is capable of delivering a staggering 1,500 transactions every second, providing it with a huge advantage over Bitcoin and Ethereum. It is this above all else which has led to the early prominence of Ripple, and which could play a major part in the development of the cryptocurrency sector. Another major front in the Bitcoin vs Ethereum vs Ripple b Continue reading >>

Advantages And Disadvantages Of Smart Contracts In Financial Blockchain Systems

Advantages And Disadvantages Of Smart Contracts In Financial Blockchain Systems

Advantages and Disadvantages of Smart Contracts in Financial Blockchain Systems Smart contracts represent special algorithms for the automation of contracts including deal making processes. Such a contract allows people to sell realties, exchange shares, money, documents or any proprietary. One of the important features of smart contract implementation is that you wont need to use intermediary services such as brokers, notaries, agents etc to make a transaction. The key properties of smart contracts are: Autonomy implies that after a smart contact launches, the deal initiator does not have to participate any more in the process. Smart contracts are not focused on one central server but are distributed by various network points so they can be referred to as being decentralized. Auto-sufficiency supposes that contracts are able to collect money, realize transactions, distribute resources, issue and spend funds to allow a larger capacity of storage and computation power. Blockchain is the ideal space for smart contract storing. As a decentralized system it does not require intermediaries to be present at the time of realizing transactions or signing deals. Smart contracts are stored in the distributed registry as a one time written code. They carry out their work thanks to a computer network which controls the blockchain. Thus, if a code is written in a proper way, nobody will be able to change it. The use of smart contracts has just begun to be popular. Existing limitations of the development of such a type of deal signing due to some technical aspects can soon disappear thanks to such platforms as CREDITS . To write and transfer smart contracts in blockchain the system uses a powerful encryption system and has a language specific completeness as per Turing. Just to comp Continue reading >>

Problems Ethereum/wiki Wiki Github

Problems Ethereum/wiki Wiki Github

Anti-spam and anti-sybil attack algorithms Incentivized marketplaces for computational resources Decentralized systems for social welfare / mutual aid / basic income Decentralized governance (for both for-profit and non-profit entities) The increasing prominence of cryptoeconomics in the last five years is to a large extent the result of the growth of cryptocurrencies and digital tokens, and brings a new, and interesting, dimension to cryptography. While before cryptography was, by and large, a purely computational and information-theoretic science, with strong guarantees built on security assumptions that are close to absolute, once money enters the picture the perfect world of mathematics must interact with a much more messy reality of human social structures, economic incentives, partial guarantees and known vulnerabilities that can only be mitigated, and not outright removed. While a cryptographer is used to assumptions of the form "this algorithm is guaranteed to be unbreakable provided that these underlying math problems remain hard", the world of cryptoeconomics must contend with fuzzy empirical factors such as the difficulty of collusion attacks, the relative quantity of altruistic, profit-seeking and anti-altruistic parties, the level of concentration of different kinds of resources, and in some cases even sociocultural circumstances. In traditional applied cryptography, security assumptions tend to look something like this: No one can do more than 279 computational steps Taking nth roots modulo composites is hard The elliptic curve discrete logarithm problem cannot be solved faster than in 2n/2 time In cryptoeconomics, on the other hand, the basic security assumptions that we depend on are, alongside the cryptographic assumptions, roughly the following: No se Continue reading >>

What Are The Advantages And Disadvantages Of Ethereums Blockchain Architecture? - Quora

What Are The Advantages And Disadvantages Of Ethereums Blockchain Architecture? - Quora

What are the advantages and disadvantages of Ethereums blockchain architecture? Answered May 3, 2017 Author has 1.4k answers and 5m answer views Based on my time experimenting with the Ethereum blockchain and interacting with the community, here are some of my thoughts about the advantages and disadvantages of Ethereum. By allowing for a turing complete language on the blockchain, Ethereum has created a platform where more complex contracts can be run on the network. No need for 3rd parties services in a lot of cases. This makes Ethereum a whole package, unlike a lot of other blockchains. Ethereum acts as a platform for other products and services, allowing for a robust ecosystem to grow around the system. This means that as time goes on, more and better information will be published about Ethereum, making it easier for developers to enter and contribute. Other blockchains just dont have this network effect working for them. Ethereum was designed with a robust roadmap to take it from prototype to year 35. This means that the community has some clear standards on what to expect out of the next few years. This roadmap and the execution on it is rare for the industry, as the continuous improvement is encouraging. There are a lot of companies getting involved with improving Ethereum beyond the foundation. Between the Ethereum Enterprise Alliance (EEA) and the Hyperledger team approving their first Ethereum project, there are dozens of enterprise organizations working to improve the ecosystem. Besides Bitcoin, no other blockchain has that much support from the current business community. Because Ethereum is a platform, it will never be as effective as other chains that are designed specifically to be a cryptocurrency. Bitcoin only really acts as a ledger, but Ethereum is tr Continue reading >>

Advantages And Disadvantages Of Cryptocurrency

Advantages And Disadvantages Of Cryptocurrency

Advantages And Disadvantages Of Cryptocurrency Before talking about the advantages and disadvantages of cryptocurrency, it is essential to know what it really is. Cryptocurrency is a digital currency that can use as a standard currency where ever that accepts it. However it is not under the regulation of the governments or issued by the central banks. Cryptocurrency does not enjoy the same kind of stability when comparing to regular physical currencies but nowadays many people are using it for different purposes like shopping online or money transactions. Bitcoin is the first cryptocurrency to come out and because of this, it has become the de-facto crypto which is just another benefit of Bitcoin. In reality, it is a form of digital currency that uses encrypted cryptographic technology and runs on blockchain technology. Today there are various functioning websites which allow you to convert cryptocurrency to real money and transfer it directly to your bank account or vice versa. It doesnt have a physical tangible form which is why its called digital. Unlike all other forms of currencys, its intangible so you cant touch it, smell it, or put it in a safe (kind of). This makes it hard for the older generations to take it seriously but it is being used to purchase, sell and transfer billions of dollars every single day. Many people often claim we already have different forms of currency so what are Bitcoins used for or what do people use Bitcoins for? Knowing it is a decentralized currency that no government or bank can control is a very big reason why many people are starting to use it. There are over 1200 altcoins with a lot of them being considered shitcoins, or in other words, useless. A lot of them have very good use-cases like privacy coins which helps mask your iden 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 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 >>

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