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Ethereum Explained For Dummies

What Is Ethereum?

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? 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 >>

Ethereum Cryptocurrency: Everything A Beginner Needs To Know

Ethereum Cryptocurrency: Everything A Beginner Needs To Know

Ethereum Cryptocurrency: Everything A Beginner Needs To Know By: Sudhir Khatwani In: Ethereum Last Updated: In the cryptocurrency world, if Bitcoin is the king, then Ethereum is the queen. The price of Ethereum (ETH) has risen significantly in past few months, and its one of the most promising cryptocurrenciesright now. In this article I will help you understand everything about Ethereum & you would learn all important things that you should know as a beginner. Before that, Consider you have just booked an Uber ride and a driverless car has come to pick you up. That car takes you to the gasoline station and self-pays for its fuel with the money it earned from the previous ride. Afterward, this car takes you to your destination, and the trip fare is auto-deducted from your Uber wallet. While driving you to your destination, the car also self-paid its annual insurance fee and its monthly liability fee on behalf of its (human) owner. After it drops you off, itdrives itself to a mechanic for some repairs. You might be thinking I am telling you a scene from a Sci-Fi movie. Butto your surprise (and mine), I am not!! Such things are being tested, and the use of cryptocurrencies like Ethererum and technology like the Ethereum blockchain are the reasons that something like this can happen. Such autonomy is the direct effect of the theories behind cryptocurrencies. So to be able to digest this futuristic scenario, lets understand Ethereum. As the official Ethereum project websitesays: Ethereumis a decentralized platform for applications that run exactly as programmed without any chance of fraud, censorship, or third-party interference. But whats special about that? All software runs as it was programmed to do so Well, the code written on the Ethereum blockchain cant be altered, Continue reading >>

Bitcoin And Ethereum For Dummies: What You Should Know About Cryptocurrencies

Bitcoin And Ethereum For Dummies: What You Should Know About Cryptocurrencies

Bitcoin and Ethereum for Dummies: What You Should Know About Cryptocurrencies By Jeremy Blackwood access_time 7 months ago chat_bubble_outline Leave a comment The Bitcoin is often called the biggest technological creation since the invention of the Internet. But, what is it really? Cryptocurrency is a digital currency that functions using a blockchain. The blockchain is an innovative technology created by an anonymous person (or a group of people) known as Satoshi Nakamoto. This is a peer-to-peer ledger, which contains each and every transaction that has ever happened in the Bitcoin network. Every peer stores a complete history of all transactions, so there is no chance one can deceive the system. This database is constantly growing and is now around 130+ gigabytes. The reason Bitcoin has become so popular is not just because it is technologically innovative. Many see it as an easy way to get rich quickly. And here is where we get to mining. Mining is the only way to increase the overall amount of cryptocurrency. The role of miners is to process every Bitcoin transaction and to secure the network using the computing power of their mining devices. In return, they are rewarded with newly created Bitcoins. Just a few years ago a relatively powerful PC was enough for competitive Bitcoin mining. After the difficulty increased, more expensive solutions were introduced. Some hardware companies offer readymade solutions - so-called miners consisting of several powerful graphic cards (GPUs). Huge mining farms consisting of thousands of devices are used too. An average mining device pays off in 10 months. Professional ppt can speak a thousand words. A professional presentation design is twice more effective. Which cryptocurrencies are worth mining and investing in? Currently, th 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 >>

A Beginners Guide Toethereum

A Beginners Guide Toethereum

BlockChannel is a new media & educational hub focused on the socio-cultural/economic issues related to blockchain technologies like BTC/ETH/& ZEC. When Bitcoin was created in 2009 it sparked a social and technological movement and has since sent ripples across the financial industry. A promising technology, one often times pushed by the wayside under the guise of blockchain or distributed ledger in the press. It was the first technology that allowed us to securely send money across the internet, without fear of fraud or censorship. However, several pioneers saw some potential in the underlying technology that powered the secure payment system: the blockchain. What initially enabled many individuals to send money, also held the potential to decentralize the Internet as we know it. But there was one caveat (or several for that matter), Bitcoin wasnt designed to send anything more than a few kilobytes of data per transaction, nor was it capable of performing calculations that didnt fit into his limited (by design) scripting language. Satoshi Nakamoto, the creator of Bitcoin, believed that limiting the functionality of the system would significantly improve security. But Vitalik Buterin, the creator of Ethereum , saw things a little bit differently. Vitalik imagined Ethereum as a world computer; one that fits a virtual machine (the EVM), a Turing-complete language(Solidity, and soon Viper), a token (ETH), and fuel (gas) to power every transaction in its network. This combination allows the creation of complex programmatic computational instructions commonly known as smart contracts and decentralized applications or DApps. What previously took entire separate tokens and platforms, Ethereum could implement with a few lines of code. Some examples are currently under developme 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 >>

Blockchain, Bitcoin And Ethereum Explained

Blockchain, Bitcoin And Ethereum Explained

Blockchain, Bitcoin And Ethereum Explained Opinions expressed by Forbes Contributors are their own. Despite hundreds of articles being written and discussions being had on this subject, can anyone truly say that they understand everything about blockchain, Bitcoin,and Ethereum? I spoke to Loi Luu, co-founder and CEO of KyberNetwork , a decentralized exchange that allows for the instant trading and conversion of any cryptocurrency. I asked this renowned cryptocurrency, smart contract security and distributed consensus algorithm researcher the questions most regularly asked about blockchain, as well as its impact on the fintech industry. Madhvi Mavadiya: In layman's terms, how would you describe blockchain's impact on the fintech industry? Loi Luu: Revolutionary, because it takes away the middleman to attain the same purposes in transactions. Traditionally, middlemen such as banks and other forms of financial institutions are needed to ensure that a payment goes through. However, these middlemen cost money, and as a result payment transactions become unnecessarily inefficient, bloated and expensive. Additionally, having middle men introduces potential security risks and financial fraud. Blockchain improves the efficiency of a transaction by eliminating the middlemen, and as a result, we could have a more efficient payment system, reducing the cost of money transfer for everyone. Blockchain also makes things more transparent and easily auditable by any third party. Mavadiya: How would you describe Ethereum's impact on fintech? Loi: Ethereum is the first generic blockchain platform that allows users to easily create and deploy their decentralized and trustless applications. It has created incredible opportunities in the fintech space. Its creation and adoption has allowed Continue reading >>

A Beginners Guide Toethereum

A Beginners Guide Toethereum

According to the Ethereum website , Ethereum is a decentralized platform that runs smart contracts. This is an accurate summary but in my experience when first explaining Ethereum to friends, family, and strangers it helps to compare Ethereum to Bitcoin since a lot of people have at least heard about Bitcoin before. This beginners guide should help those who are new to Ethereum to understand the high level differences between the two. Simply put, Bitcoin can be described as digital money. Bitcoin has been around for eight years and is used to transfer money from one person to another. It is commonly used as a store of value and has been a critical way for the public to understand the concept of a decentralized digital currency. Ethereum is different than Bitcoin in that it allows for smart contracts which can be described as highly programmable digital money. Imagine automatically sending money from one person to another but only when a certain set of conditions are met. For example an individual wants to purchase a home from another person. Traditionally there are multiple third parties involved in the exchange including lawyers and escrow agents which makes the process unnecessarily slow and expensive. With Ethereum, a piece of code could automatically transfer the home ownership to the buyer and the funds to the seller after a deal is agreed upon without needing a third party to execute on their behalf. The potential for this is incredible! Think of the numerous applications that act as a third party to connect you with others based on some set logic (e.g. Uber, Airbnb, eBay). Many of the centralized systems we use today could be built in a decentralized manner on Ethereum. With Ethereum you can make these transactions trustless which opens up an entire world of dec Continue reading >>

Ethereum For Dummies - Introducing The Next Great Technological Leap Forward Steemcreated With Sketch.

Ethereum For Dummies - Introducing The Next Great Technological Leap Forward Steemcreated With Sketch.

Ethereum for Dummies - introducing the next great technological leap forward Many people have at least heard of Bitcoin, by far the #1 cryptocurrency by market cap. But few outside of crypto-enthusiast circles are acquainted with Ethereum, the crypto world's #2 rising star. This post aims to give a simple overview of what Ethereum is and why you should care. Simply put, Ethereum takes the core blockchain technology that lies at the heart of Bitcoin, and evolves it. You know how floppy disks were replaced by CDs, which were replaced by DVDs, which were replaced by Blu-ray? Well, picture Bitcoin as a floppy disk. It's slow and has limits in regards to how many transactions can be processed at a time. Then Ethereum is a CD (maybe an improved future version of it will become the DVD and Blu-ray in this evolutionary analogy). It's much faster, and allows for higher transactional volume. Everything Bitcoin can do (digital store of money, sending / receiving payments), Ethereum can also do. But Ethereum does it better, more efficiently. Just as a CD does everything a floppy disk does (storing / retrieving data), but once you've been introduced to the wonders of CDs, you'll never go back to using those archaic floppy disks. Seriously, I bet a lot of you young uns have never even seen a floppy disk - which makes me wonder if this is the best analogy to be using, but oh well. Got it, Ethereum's a better Bitcoin. So what? What makes Ethereum so special? Glad you asked! Many so-called "altcoins" have attempted to improve on Bitcoin's technology, so that by itself doesn't make Ethereum stand out from the pack. Let's trot out a second analogy. Imagine Bitcoin is a calculator. It's good at what it does, but that's it. You can't really extend it to new & interesting use cases. It will Continue reading >>

Part 2: Ethereum Explained To The Average Internetuser

Part 2: Ethereum Explained To The Average Internetuser

Part 2: Ethereum explained to the average internetuser Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference. In Part 1 , we dived right into creating an Ethereum wallet and attempted to (unsuccessfully) exchange USD for Ether. In this post, we explain what Ethereum is, what it does, and how it works. Even though Ethereum was founded in late 2014, and the volume of articles explaining the intricacies of the technology has grown in the past year, the concept remains complex to grasp. This yellow paper written by Ethereum CTO Gavin Wood or the original white paper written by founder Vitalik Buterin are indicative of the underpinning complexity of the concept. This post is intended for the average user of the internet someone who uses apps but does not necessarily develop them, makes online purchases but does not necessarily understand how they are transacted behind the scenes. We recommend checking out these resources from the Ethereum founding team and decide if you even need a simplified explanation. If you watched at least part of the above video, Ethereum's CTO Gavin Wood describes it as: Wed like to stick with Gavins theme and explore what he really means. A computer is, simply put, a computational machine: it takes inputs, processes these inputs using certain instructions, and creates outputs. Now, lets imagine that you want to record a song on your computer. You could fire up some recording software, start singing and save the song as a file on the computer. You have full control and ownership of this file. Or you could use an app like Soundcloud and record your song directly onto the cloud. You still own this song, but Soundclou Continue reading >>

Ethereum For Dummies

Ethereum For Dummies

To put it in simple words, Ethereum is a decentralized platform for running smart contracts. Smart contracts are applications that run just the way they are programmed, with virtually zero possibility of any censorship, fraud, third party interference or downtime. Ethereum was crowdfunded in the year of 2014 from its fans all over the world, and was developed by a Swiss nonprofit organization, the Ethereum Foundation , in collaboration with some of the greatest minds from around the world. Before talking about Ethereum in detail, knowing more about the three commonly used terms in the Ethereum environment will be helpful so let us get into that. As the name suggests, these are contracts but not in the way we normally think of a contract. A smart contract is a computer protocol/program, which automatically executes the contractual part corresponding to the condition that is fulfilled. With smart contracts, you are looking at an incorruptible system of enforcing contracts, thus eliminating the risks of delayed payments and bringing down the risk of non-performance by over 80%. The Blockchain, being the most talked-about subject in Ethereum and other cryptocurrencies like Bitcoin, is nothing more than a distributed database. It has data records, is growing continuously and also is protected against any form of revision and tampering, even from its own operators. A blockchain, unlike traditional server architecture, does not go down if a single node is compromised or goes offline. The user data is private and apps remain decentralized, working just the way Internet was supposed to do. The Ethereum wallet acts as a gateway for DApps or Decentralized Applications that work on the Ethereum Blockchain. It holds ether, amongst other crypto-assets that are built using Ethereum. Continue reading >>

Everything Youve Ever Wanted To Know About Ethereum, Patiently Explained

Everything Youve Ever Wanted To Know About Ethereum, Patiently Explained

Everything youve ever wanted to know about Ethereum, patiently explained Although Bitcoin and Ethereum are terms that are often paired together, the reality is that they are vastly different.The only thing Ethereum shares with Bitcoin is that its a cryptoasset running on top of blockchain. Instead of being just a cryptocurrency, like Bitcoin, Ethereum also has features which effectively makes it a huge decentralized computer. To understand Ethereum , one must understand how blockchain works. If you already understand it, or have already read my ultimate guide to understand blockchain , feel free to go directly to the next section. A blockchain, simply put, is a database. Its an ever growing database of certain kind of data and has quite remarkable properties: Once data is stored in the database, it can never be modified or deleted. Every record on a blockchain is permanent for eternity. No single individual or organization maintains the database; several thousand individuals do, and everyone has a copy of the database with themselves. To understand how several people are able to keep their copies of the database in sync with everyone else, imagine there are ten individuals in a network. Everyone is sitting with an empty file folder and an empty page in front of them. Whenever anyone does something important in the network, like transferring money, they announce it to everyone in the network. Everyone makes a note of the announcement on their pages until the page is filled. When it does, everyone has to seal the contents of the page by solving a mathematical puzzle. Solving the mathematical puzzle ensures that everyones page had same contents and that they can never be modified. Whoever does it first, gets rewarded with some amount of cryptocurrency. Note: Want to know Continue reading >>

Ethereum Explained For Beginners

Ethereum Explained For Beginners

Ethereum is a digital currency, designed on a block chain open platform, a decentralized application that can be used by anyone. Ethereum cannot be controlled similar to BITCOIN. Ethereum platform was globally designed by many people. However, Ethereum has a strong protocol unlike BITCOIN, in which the user can create an application or use the tool safely with the introduction of Homestead. It is designed to be flexible and adaptable by a large audience. In addition, Ethereum is said to be the next generation technology based on block chain, originally designed by Satoshi Nakamoto, a Peer-To-Peer Electronic Cash System, named BITCOIN. The block chain is a computer structured framework in which each node of network is executed and recorded similar transactions that are grouped within blocks. One block is added at a time where each block contains a proof of mathematics that verifies the chain, linked to earlier block. The transactions of the user are protected by a strong cryptography. Ethereum was initially invented by Vitalik Buterin in 2013, which was the result of his research work for the community of BITCOIN. Soon, after the invention, Vitalik had published the white paper known as Ethereum white paper, describing the details of the design technicalities and rationale for smart contract structure and Ethereum protocol. Vitalik formally announced the program in January 2014, at The North American BITCOIN Conference in Miami, Florida, USA. During that time Vitalik began working in collaboration with Dr. Gavin Wood, jointly founded the Ethereum. Ethereum is based on a programmable block chain that provides the user with the pre-defined set of operations and allow the users to create the operation of their own choice, according to their wishes. This sort of system has Continue reading >>

Smart Contracts For Dummies Freecodecamp

Smart Contracts For Dummies Freecodecamp

If you still dont get what the heck a Smart Contractis Ok, you know a bit about Bitcoin (see: Explain Bitcoin Like Im Five ). Youve been seeing the blockchain on the news. But whats this new Ethereum thing? Apparently its this crypto-currency you can use to build smart contracts. Sounds impressive. So, uh what are they again? (Spoiler: Theyre not that smart. And theyre not really contracts!) Instead of a one line definition, lets try to get an intuition. First, well revisit the blockchain and the word trust. Then, well talk about the word contract. Understanding both words is the secret. Most of the time, when we think Bitcoin (or Ethereum), we have a mental image of, wellcoins. Arent these crypto-currencies after all? Isnt that the whole point? In our minds we see objects digital gold, or silver (or tulips for the skeptics). Because these images are easy to understand, we forget a bit about that thing thats underneath it all. So, I say we start thinking about this in a different way. Ugh, really? Digital rocks? Actually, rocks are pretty useful. We have this idiom in the english language that goes something like this: set it in stone. Ive reviewed the contract Bob. Looks good. Lets set this instone! Dont get too excited Alice, nothings in stoneyet. This is God. Ive written my 10 commandments on these two stone tablets. You know. Just in case ya'll start getting any funnyideas. This metaphor continues to have meaning in a modern world because in the physical (ancient) world, stone had some interesting properties: When you carve something on stone there is a physical finality and permanence to it. You cant make changes just like that. If you try to erase something later on, itll be obvious. Any changes you make to it are quite transparent and tamper proof (provable). Th Continue reading >>

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