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Ethereum Definition

Ethereum Definition | Bankrate.com

Ethereum Definition | Bankrate.com

Ethereum is a distributed computingplatform built on blockchain technology. One way to think of it is as a world computer in which anyone, anywhere can run an application and havean unlimited amount of processor power available to them. Apps that run in ethereum are verysecure because no third party can manipulate them. Ethereum developed afterthe cryptocurrency bitcoin. Bitcoin uses whats called a blockchain, a publicly accessible digital ledger, to record and verify every bitcoin transaction. The blockchain cannot be manipulated, which permanently protects the integrity of the system. Ethereum takesthe blockchain advantagesof automatic verification and total transparency, and applies them to software. Apps are built on the ethereum platform usingsmart contracts:aprogramer recordsinstructionson the blockchain in the form of a smart contract, and the fulfillment of certainconditions executesthecontract: a good is ordered, a service is rendered, or an investment is secured. All transactions onethereum utilizeacryptocurrency called ether. The blockchain enforces the smart contract even when the users dont know or trust each other, giving theman advantage over conventional contracts that must be enforced by civil courts. There is no room for interpretation and no possibility of loopholes: the code runs the same way every time. Smart contractscan be used to certify the results of an election or a sports bet, or manage every part of a businesss workflow. One company is using ethereum to verify exchanges made in a person-to-person energy-sharing power grid. Another authenticates the existence and ownership of precious assets, like gold. Major institutions like J.P. Morgan , the Royal Bank of Scotland, and Microsoft have all deployed ethereum. This all works because every app Continue reading >>

What Is Ethereum, In Layman's Term?

What Is Ethereum, In Layman's Term?

When we use our computers and use Word docs or other files we normally save them in folders. A folder with docs, photos, spreadsheets, music files, other files, etc. could be called our database. When we use Facebook, for example, we don't keep that "database" of photos, status reports, messages, links, etc in our computer, Facebook keeps a database of all our activities on their servers in a data-center, which is a building full of servers (powerful computers). In the case of Bitcoin instead of using Facebook, or any other service, to store our stuff in their databases, we download a software that is more or less like Skype, and instead of sending and receiving voice or video or text between us we send and receive units called bitcoins. The Bitcoin software (Bitcoin Core) instead of centralizing "the database" in a service like Facebook or Google or Dropbox, it keeps a copy of the database on your laptop or PC. Imagine 10 friends at a bar around a table and everybody with a laptop and a copy of Bitcoin. Each laptop has the complete database of the Bitcoin list of accounts and transactions. When friend A sends 1 bitcoin to friend B it sends the message to all 10 laptops and they all check that the balance is correct, the accounts, etc. and after checking (and doing some other calculations) they all agree to post, on the databases that they all have in their disks, the new transaction. The Bitcoin database is called a blockchain, because of how it operates, and the process by which all computers check transactions and reach an agreement is called "consensus" (there is another process called mining, but I think it's not relevant in a layman's explanation). The world changing invention of Bitcoin is that all computers participating in the network can keep this "distribute Continue reading >>

What Is Ether?

What Is Ether?

Ether is a necessary element a fuel for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations. To put it another way, ether is the incentive ensuring that developers write quality applications (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources). If you just want to test the technology, you probably don't need real ether. Download the latest Wallet app and switch to the Test Network Check your ether presale balance safely here: The total supply of ether and its rate of issuance was decided by the donations gathered on the 2014 presale. The results were roughly: 60 million ether created to contributors of the presale 12 Million (20% of the above) were created to the development fund, most of it going to early contributors and developers and the remaining to the Ethereum Foundation 5 ethers are created every block (roughly 15 seconds) to the miner of the block 2-3 ethers are sometimes sent to another miner if they were also able to find a solution but his block wasn't included (called uncle/aunt reward) Note that after the Byzantium update is implemented, the mining and uncle reward is reduced to 3 ethers and 0.625-2.625 ethers, respectively. No. According to the terms agreed by all parties on the 2014 presale, issuance of ether is capped at 18 million ether per year (this number equals 25% of the initial supply). This means that while the absolute issuance is fixed, the relative inflation is decreased every year. In theory if this issuance was kept indefinitely then at some point the rate of new tokens created every year would reach the average amount lost yearly (by misuse, accidental key Continue reading >>

Ethereum - Wikipedia

Ethereum - Wikipedia

This article has multiple issues. Please help improve it or discuss these issues on the talk page . This article relies too much on references to primary sources . Please improve this by adding secondary or tertiary sources . Some of this article's listed sources may not be reliable . Please help this article by looking for better, more reliable sources. Unreliable citations may be challenged or deleted. The Ethereum Project's logo, first used in 2014 Ethereum is an open-source , public, blockchain -based distributed computing platform featuring smart contract (scripting) functionality. [2] It provides a decentralized Turing-complete virtual machine , the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a cryptocurrency token called "ether", which can be transferred between accounts and used to compensate participant nodes for computations performed. [3] "Gas", an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network. [2] [4] Ethereum was proposed in late 2013 by Vitalik Buterin , a cryptocurrency researcher and programmer. Development was funded by an online crowdsale between July and August 2014. [5] The system went live on 30 July 2015, with 11.9 million coins "premined" for the crowdsale. [6] This accounts for approximately 13 percent of the total circulating supply. In 2016, as a result of the collapse of The DAO project, Ethereum was forked into two separate blockchains - the new forked version became Ethereum (ETH), and the original continued as Ethereum Classic (ETC). [7] [8] [9] Ethereum was initially described in a white paper by Vitalik Buterin , [10] a programmer involved with Bitcoin Magazine , in late 2013 with a goal of buildin Continue reading >>

What Is Ethereum?

What Is Ethereum?

Traditional law is a form of agreement. It is an agreement among people and their leaders as to how people should behave. There are also legal contracts between individuals. These contracts are a form of private law that applies to the participants. Both types of agreement are enforced by a government's legal system. For example, if you loan someone money and they don't pay you back, you might take them to court. In practice, this is messy and unpredictable. Court cases require expensive lawyers to argue about the law, are often measured in years and even if you "win", you have the problem of collecting. Hopefully you wrote down the terms of that loan as a contract. However, the authors of laws and the writers of contracts face a special kind of challenge. Ideally, there should never be any confusion about the meaning of the agreement. But laws are written with words, and words are famously imprecise. There is no greater impediment to the advancement of knowledge than the ambiguity of words. So these are big problems with traditional law. Agreements are ambiguous. And enforcement is hard. Ethereum solves both these problems. It does this with the marriage of two special ingredients: a digital currency, and a complete programming language. Let's look at both. Ethereum includes a digital currency called ether. Ether has a lot in common with the famous digital currency Bitcoin. Both are a purely digital store of value and means of exchange that cannot be counterfeited. Both are implemented so that no one can manipulate the currency supply. Both can be transferred around the world, like email, and in a very final way, like cash. Both have value today because users expect them to have value tomorrow, and because they can do things traditional money cant. Ethereums other hal Continue reading >>

Ethereum Definition | Investopedia

Ethereum Definition | Investopedia

Launched in 2015, Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (Apps) to be built and run without any downtime, fraud, control or interference from a third party. Ethereum is not just a platform but also a programming language (Turing complete) running on a blockchain, helping developers to build and publish distributed applications. The potential applications of Ethereum are wide ranging. The applications on Ethereum are run on its platform-specific cryptographic token, ether. During 2014, Ethereum had launched a pre-sale for ether which had received an overwhelming response. Ether is like a vehicle for moving around on the Ethereum platform, and is sought by mostly developers looking to develop and run applications inside Ethereum. Ether is used broadly for two purposes, it is traded as a digital currency exchange like other cryptocurrencies and is used inside Ethereum to run applications and even to monetize work. The current market cap of ether (ETH) is now more than Ripple and Litecoin although its far behind bitcoin (BTC). According to Ethereum, it can be used to codify, decentralize, secure and trade just about anything. One of the big projects around Ethereum is Microsofts partnership with ConsenSys which offers Ethereum Blockchain as a Service (EBaaS) on Microsoft Azure so Enterprise clients and developers can have a single click cloud based blockchain developer environment. Continue reading >>

Understanding Ethereum, Bitcoins Virtual Cousin

Understanding Ethereum, Bitcoins Virtual Cousin

Technology |Understanding Ethereum, Bitcoins Virtual Cousin Vitalik Buterin was a fan of Bitcoin before he created the Ethereum network and its virtual currency, Ether. Credit Steve Jennings/Getty Images Bitcoin has many cousins and competitors. None have grown more popular than Ethereum, a global computer network with its own virtual currency, called Ether. Ethereum is a global computing network operating according to rules defined by Ethereum software. Those rules allow the Ethereum network to be programmed to complete certain types of computing tasks, with every computer on the network completing the task in parallel to ensure it is done correctly. Generally the tasks involve money. The creator of Ethereum, Vitalik Buterin, has likened it to a global smartphone that can be programmed to operate according to the apps built on top of it. The apps are called Dapps because they are run by a decentralized network of computers. Mr. Buterin says he chose the name because it refers to the hypothetical invisible medium that permeates the universe and allows light to travel. He announced Ethereum in late 2013, but it didnt go into operation until 2015. The Ethereum network has its own virtual currency, Ether. In the simplest sense, Ether are needed to pay the other computers on the network to complete tasks. It isnt free to use the network. People have also decided to buy and hold Ether, betting that it will become more valuable as more people want to use the network and need Ether to pay for the networks computing power. What does Ethereum have to do with Bitcoin? Mr. Buterin was a Bitcoin aficionado, and he was inspired by its success. But he set out to build something that could do more than Bitcoin: He wanted to build a system that would make it possible to program more c Continue reading >>

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 - Definition And Explanation - Corporate Finance Institute

Ethereum - Definition And Explanation - Corporate Finance Institute

With the rise of Bitcoin (BTC), the cryptocurrency market has been validated. Because of this, new cryptocurrencies or coins have tried to penetrate the market and grab a slice of the pie. Ethereum is Bitcoins strongest competitor. It currently holds the second largest market capitalization, recently tying with Bitcoin for first, before dropping back down to secondplace. As cryptocurrencies, Ethereum and Bitcoin both share a lot of commonalities. Most importantly, both ETH and BTC run on the blockchain network. This is part of the value in these cryptocurrencies, as well as what provides the security needed to manage the digitized currency. When cryptocurrencies are transferred, the blockchain network must confirm the transaction. The number of required miner confirmations for each cryptocurrency is different. Bitcoin will generally require a lesser amount of confirmations than ETH, because of several factors, as listed below: ETHs infrastructure allows confirmations to happen quicker and more often than Bitcoin. Because of this reason, 3-10 ETH confirmations can occur for every BTC confirmation. Because ETHs blockchain network is open sourced, companies can build APIs and other applications directly on top of an ETH network. This means that online shops or other types of utility can be connected directly to Ethereum, and ETH can be used directly. Because ETH is relatively newer than Bitcoin, there are fewer avenues to purchase it. That being said, Ethereum is still openly traded and not hard to get your hands on. You have the following options: Dealers offer to sell or purchase ETH just like any other currency exchange dealer. They make a profit from the difference between their buy and sell price, which are often slightly different from the market. In trading with a Continue reading >>

Ethereum Project

Ethereum Project

You are responsible for your own computer security. If your machine is compromised you will lose your ether, access to any contracts and possibly more. You are responsible for your own actions. If you mess something up or break any laws while using this software, it's your fault, and your fault only. You are responsible for your own karma. Don't be a jerk and respect the rights of others. What goes around comes around. The user expressly knows and agrees that the user is using the Ethereum platform at the users sole risk. The user acknowledges that the user has an adequate understanding of the risks, usage and intricacies of cryptographic tokens and blockchain-based open source software, eth platform and ethereum The user acknowledges and agrees that, to the fullest extent permitted by any applicable law, the disclaimers of liability contained herein apply to any and all damages or injury whatsoever caused by or related to risks of, use of, or inability to use, ethereum or the Ethereum platform under any cause or action whatsoever of any kind in any jurisdiction, including, without limitation, actions for breach of warranty, breach of contract or tort (including negligence) and that neither Stiftung Ethereum (i.e. Ethereum Foundation) nor Ethereum team shall be liable for any indirect, incidental, special, exemplary or consequential damages, including for loss of profits, goodwill or data that occurs as a result. Some jurisdictions do not allow the exclusion of certain warranties or the limitation or exclusion of liability for certain types of damages. Therefore, some of the above limitations in this section may not apply to a user. In particular, nothing in these terms shall affect the statutory rights of any user or exclude injury arising from any willful misconduct Continue reading >>

What Is Ethereum? Ethereum Homestead 0.1 Documentation

What Is Ethereum? Ethereum Homestead 0.1 Documentation

Ethereum is an open blockchain platform that lets anyone build and use decentralized applications that run on blockchain technology. Like Bitcoin, no one controls or owns Ethereum it is an open-source project built by many people around the world. But unlike the Bitcoin protocol, Ethereum was designed to be adaptable and flexible. It is easy to create new applications on the Ethereum platform, and with the Homestead release, it is now safe for anyone to use those applications. Blockchain technology is the technological basis of Bitcoin, first described by its mysterious author Satoshi Nakamoto in his white paper Bitcoin: A Peer-to-Peer Electronic Cash System, published in 2008. While the use of blockchains for more general uses was already discussed in the original paper, it was not until a few years later that blockchain technology emerged as a generic term. A blockchain is a distributed computing architecture where every network node executes and records the same transactions, which are grouped into blocks. Only one block can be added at a time, and every block contains a mathematical proof that verifies that it follows in sequence from the previous block. In this way, the blockchains distributed database is kept in consensus across the whole network. Individual user interactions with the ledger (transactions) are secured by strong cryptography. Nodes that maintain and verify the network are incentivized by mathematically enforced economic incentives coded into the protocol. In Bitcoins case the distributed database is conceived of as a table of account balances, a ledger, and transactions are transfers of the bitcoin token to facilitate trustless finance between individuals. But as bitcoin began attracting greater attention from developers and technologists, novel p Continue reading >>

What Is Ethereum? A Step-by-step Beginners Guide

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 >>

Blockchain - How Would I Explain Ethereum To A Non-technical Friend? - Ethereum Stack Exchange

Blockchain - How Would I Explain Ethereum To A Non-technical Friend? - Ethereum Stack Exchange

How would I explain Ethereum to a non-technical friend? I've recently attempted to explain Ethereum to several non-techy friends. My explanation usually involves starting with a comparison to Bitcoin, but this quickly becomes complicated as I then have to explain the backstory of how the Bitcoin blockchain works, which is similarly technical in nature. Is there a better way to describe the general concepts of Ethereum to non-techies? Are there any analogies I can make to things that are less technical in nature? Or is it just the case that the technology is quite complicated...? Ethereum is a world computer [ 1 ] and might change how we interact, just like the internet did, 20 years ago. Like Bitcoin, it is based on a block chain, but Ethereum is more than just a currency: Secure backbone for e-commerce and the Internet of Things Integrated development environment for debugging, development and deployment of Ethereum applications Free software - all released under the General Public Licence (GPL) The substantive content of your Answer was almost entirely in a linked video and therefore unavailable in this StackExchange. There was no attempt to summarize the salient points of the video. user75798 Jan 20 '16 at 21:25 Brilliant! I was having trouble to understand it myself Zorgatone Jan 21 '16 at 13:44 Many parts of Ethereum software are not released under the GPL. E.g. pyethereum , evmjit . Pawe Bylica Mar 9 '16 at 19:14 This answer isn't that sexy. For us who understand, it says everything. But for someone new: "Transparent, why is that cool? I expect all services to be secure. Paypal is secure and something license." Not being a hater in any way, just trying to find more of a elevator pitch which makes the other person go "Aha!" Jon Ramvi Aug 23 at 12:45 It depends on Continue reading >>

How Ethereum Works - Coindesk

How Ethereum Works - Coindesk

CoinDesk Launches 2017 Year in Review Opinion and Analysis Series Now that we've covered what ethereum is, let's dive deeper into how the platform functions under the hood. Consider the online notebook application described in " What is Ethereum? " Using ethereum, the appdoesn't require one entityto store and control its data. To accomplish this, ethereum borrows heavily from bitcoin's protocol and its blockchain design, but tweaks it to support applications beyond money. Ethereum aims to abstract away bitcoin's design, however, so that developers can create applications or agreements that have additional steps, new rules of ownership, alternative transaction formats or different ways to transfer state. The goal of ethereum's 'Turing-complete' programming language is to allow developers to write more programs in which blockchain transactions could govern and automate specific outcomes. This flexibility is perhaps ethereum's primary innovation, as explained in the guide " How Ethereum Smart Contracts Work ". The structure of the ethereum blockchain is very similar to bitcoin's, in that it is a shared record of the entire transaction history. Every node on the network stores a copy of this history. The big difference withethereum is that its nodes store the most recent state of each smart contract, in addition to all of the ether transactions. (This is much more complicated than described, but the text below should help you get your feet wet.) For each ethereum application, the network needs to keep track of the 'state', or the current information of all of these applications, including each user's balance, all the smart contract code and where it's all stored. Bitcoin uses unspent transaction outputs to track who has how muchbitcoin. While it sounds more complex, the id Continue reading >>

What Is Ethereum? - Definition From Whatis.com

What Is Ethereum? - Definition From Whatis.com

virtual agent (intelligent virtual agent or virtual rep) Ethereum is an open source, distributed software platform and cryptocurrency built off of blockchain technology. Blockchain is a distributed ledger technology, or DTL, that keeps a permanent, tamper-proof list of records. Ethereum is Bitcoins main competitor. Ethereum allows developers to build decentralized applications. Miners produce Ether tokens which can be used as a currency as well as to pay for usage fees on the Ethereum network. The platform also supports smart contracts, which are a type of digital contract. Ether tokens are produced by the nodes or computers of volunteers who mine for the coin. Mining produces the cryptography upon which the currency is based. Because mining is a demanding use of a computers resources, miners are rewarded with Ether. The Ethereum platform offers the computationally complete (Turing complete), Ethereum Virtual Machine (EVM). EVM executes scripts worldwide across its network of distributed public nodes. These nodes provide the processing power for decentralized applications created by developers to run on the network. Developers may purchase Ether to pay for network use, or mine for the tokens themselves, becoming a part of the network. The pricing of transactions on the network is set by an internal mechanism called Gas. Smart contracts are carried across the network in the same blockchain that records the ledger of transactions for the Ether cryptocurrency. These digital contracts can have conditions that run on scripts until fulfilled. Ethereum has built-in mechanisms to detect when an agreement is not met. Smart contracts can be used to exchange things such as properties, money and stocks on the back of a token of Ether. Ethereum came from a proposal made by cryptocu Continue reading >>

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