CryptoCoinsInfoClub.com

Is Ethereum Decentralized

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 >>

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 >>

Why Ethereum-style Blockchains Do Not Really Decentralize

Why Ethereum-style Blockchains Do Not Really Decentralize

Why Ethereum-Style Blockchains Do Not Really Decentralize You are all ready for decentralization - it sounds like a new and free and better tech utopia to you. But then you realise, you might not be as free as you'd like to be. Ethereum and similar platforms intend to generalize Bitcoin technology by adding a Turing complete language to the stack. The idea is to have a powerful language at hand with which to implement all kinds of applications - Bitcoin is just the first app, the real technology is the immutable Blockchain and consensus over a distributed system. Bitcoin, on the contrary, deliberately supports a very sparse, incomplete scripting language to avoid attack vectors. Bitcoin is a platform which enables transactions, and generalizing it towards an application platform can enable many interesting innovations around so-called smart contracts. Ironically, this defeats the decentralization purpose, because application data and logic will be centralized on the Blockchain. Smart contracts with code that is shared among all participants, which cannot be changed - unless there is a hard fork, which requires the consent of the community - and data in an immutable ledger can be a powerful platform for certain use cases. Often, these can be legally relevant contexts - contracts that enforce itself based on input (an oracle from the outside world, claiming, for example, a certain temperature at some place at some time or a payment received) and an effect - such as regulating energy supply or enabling a key for a flat. Cause and effect do not need an intermediary, an agent or a legal system other than the smart contract. These just execute unstoppable - like a vending machine: insert a coin and the mechanics ensure you get your bottle and you don't need a shop in between Continue reading >>

What Is Ethereum? Sfox

What Is Ethereum? Sfox

The advanced #Bitcoin trading platform for advanced #Bitcoin traders. Our algorithms volatility. Backed by @YCombinator. Ethereum is a blockchain-based platform for decentralized applications, or dApps. Whereas Bitcoin was designed primarily as a decentralized digital currency, Ethereum was built with a Turing-complete language for contracts, allowing it to serve as a platform for all types of dApps. In Ethereum, you can write a smart contract to do virtually anything, from executing a token crowdsale to automatically distribute your assets after your death. Its nothing short of a world computer a decentralized virtual machine in the cloud that will execute anyones code in exchange for a fee. The platform design is based on two key differentiating features: Blockchain: Ethereum accounts store contract code and data in addition to keeping a balance. This is referred to rich statefulness, which is basically the ability for Ethereum to remember more and maintain more state at the blockchain level. Turing-complete programming language: As a world computer, Ethereum can run any code that a normal computer could run. People pay gas to miners for computational resources to run their contracts. From the early days of Bitcoin, software developers have seen the power in the underlying blockchain technology and have looked for other areas in which to apply it. Today, Ethereum is the blockchain development platform of choice, hosting hundreds of different decentralized apps or dApps. Apps built on Ethereum are called dApps, short for decentralized applications. Because Ethereum theoretically can power any app that Amazon Web Services could, app ideas have been thrown around enthusiastically, for example from the Ethereum whitepaper , decentralized file storage, decentralized hedge Continue reading >>

Ethereum Is Not The Future Of A Decentralized Internet

Ethereum Is Not The Future Of A Decentralized Internet

Ethereum is not the future of a decentralized internet Experienced CEO and systems engineer. Responsible for product management, financial management and overseeing marketing and strategic technical programs as well... When Ethereum was conceived in 2013, as a distributed technology for application development, many hailed it as the essential layer on which the apps of the future would be built. Even now, when you think of the words decentralized application, Ethereum instantly comes to mind. But a lot has happened in the four years since, both for Ethereum and the other blockchains in the crypto-economy. While Im not predicting the end of Ethereum, the landscape for app developers looking to leverage the power of blockchain is very different now. Which is why they would be well advised to remain blockchain agnostic. the landscape for app developers looking to leverage the power of blockchain is very different now When Vitalik Buterin first proposed the idea that became Ethereum, it was in order to build decentralized applications. At the time, he couldnt get agreement to implement this as part of the Bitcoin blockchain and so he decided to develop it as a new one. This blockchain would understand a general-purpose programming language and therefore enable the building of decentralised applications. Key to Ethereums blockchain was its use of smart contracts, the programmes that could execute payments automatically based on a set of rules being met. This functionality automatically opened up a whole range of potential use cases, not just within financial services but many other markets too. This is why Ethereum has such a close association with decentralized applications and why the vast majority that exist today are built on Ethereum. While the forecasts looked good, E 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 >>

[1801.03998] Decentralization In Bitcoin And Ethereum Networks

[1801.03998] Decentralization In Bitcoin And Ethereum Networks

Computer Science > Cryptography and Security Title:Decentralization in Bitcoin and Ethereum Networks Authors: Adem Efe Gencer , Soumya Basu , Ittay Eyal , Robbert van Renesse , Emin Gn Sirer Abstract: Blockchain-based cryptocurrencies have demonstrated how to securely implementtraditionally centralized systems, such as currencies, in a decentralizedfashion. However, there have been few measurement studies on the level ofdecentralization they achieve in practice. We present a measurement study onvarious decentralization metrics of two of the leading cryptocurrencies withthe largest market capitalization and user base, Bitcoin and Ethereum. Weinvestigate the extent of decentralization by measuring the network resourcesof nodes and the interconnection among them, the protocol requirementsaffecting the operation of nodes, and the robustness of the two systems againstattacks. In particular, we adapted existing internet measurement techniques andused the Falcon Relay Network as a novel measurement tool to obtain our data.We discovered that neither Bitcoin nor Ethereum has strictly better propertiesthan the other. We also provide concrete suggestions for improving bothsystems. Continue reading >>

How Are Ethereum And Bitcoin Centralized And Decentralized? | Cryptocurrencies - Quora

How Are Ethereum And Bitcoin Centralized And Decentralized? | Cryptocurrencies - Quora

How are Ethereum and Bitcoin centralized and decentralized? WePower - blockchain based green energy trading network. WePower token is backed by green energy. Token grows with platform expansion. Backed by biggest funds. Bitcoin and Ethereum are themselves distributed but they are currently each highly dependent on highly centralized groups of actors. Bitcoin and Ethereum are two types of digital currencies (Bitcoin for now is more like digital gold) that can be exchanged without any intermediary, broker or third party. You and I can exchange Bitcoin by ourselves. We dont need to use a broker or Bitcoin exchange. Theres no central entity needed. At all. Just you and me. This is what Localbitcoins. com helps you accomplish. Most people keep their Bitcoin on a hard wallet or at an exchange like Coinbase. More formally, a distributed system is true peer-to-peer without a central entity. Decentralized is a term that most people use to describe distributed, but technically it means things that require you to go through a third party, but there are at least a few third parties you can pick from. Centralized technically means you have to go through one party (as in a monopoly) but people use it to mean a limited number of options. So when people say banks are centralized, they mean you cant avoid using a bank. Right now there is a fierce fight for the soul of Bitcoin. Said more cyncically, there is a big power struggle over who controls Bitcoin. Above is a tiny excerpt of just one of many debates happening daily. (warning: I do not practice BNBR on Twitter)- As blockchains, both Ethereum and Bitcoin are distributed systems and not centralized. However, Bitcoin and Ethereum each depend on or are greatly influenced by, among others, the following groups of actors - which are gen 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 A Decentralized Application?

What Is A Decentralized Application?

Internet users don't have sole control over the data they share on today's websites. Ethereum is unique in that it attempts to wield the blockchain as a way to correct what its designers believe is a problematic part of the internet's design. It's like a decentralized appstore where anyone can publish their unstoppable apps (dapps), which unlike todays apps (think Gmail or Uber) dont require a middleman to function or to manage a users information. Dapps connect users and providers directly. One example is to use this design for a decentralized Twitter thats resistant to censorship. Once you publish a message to the blockchain, it cant be erased, not even by the company that created the microblogging system. There isnt one definition of a dapp, though, as its a newer concept. A couple of main characteristics are that they're open source and don't have a central point of failure. With this new technology out in the wild, ethereum advocates might feel electrified by the thought of decentralizing "all the things." But the types of applications that users can build with the computing platform might be somewhat narrow. The ethereum white paper splits dapps into three types: apps that manage money, apps where money is involved (but also requires another piece), and apps in the other category, which includes voting and governance systems. In the first type of app, a user may need to exchange ether as a way to settle a contract with another user, using the network's distributed computer nodes as a way to facilitate the distribution of this data. The second type of app mixes money with information from outside the blockchain. For example, a crop insurance application that's dependent on an outside weather feed. (Say a farmer buys a derivative that automatically pays out if ther Continue reading >>

Ethereum Is Not A Cryptocurrency

Ethereum Is Not A Cryptocurrency

Im sick and tired of intelligent developers and economists comparing Ethereum to Bitcoin. If you read crypto headlines at all, especially in the last few months, youll have seen plenty of Bitcoin vs Ethereum or ETH will suffer as BTC succeeds. On behalf of the blockchain/crypto community, can I please ask you all to do one thing? Stop it. Bitcoins Alternative Ethereum. Comparing Bitcoin to Ethereum is so illogical that you cant even say its like comparing apples to oranges . Bitcoin is a currency. Ethereum is a platform. Claiming the two are similar enough to compare makes just as much sense as saying youre going to build a website on top of a physical $1 bill . Bitcoin is a currency . Ethereum is a platform. Bitcoin, being a currency, should ideally be used in place of fiat currency . This means you trade it for goods and services , in the same way you would trade the green stuff in your wallet . Ethereum, in stark contrast, is a place for innovative developers to build programs, businesses, and services. The two are very different. There should be no Ethereum vs Bitcoin debate. You should invest in both. I can understand if you have some problems investing in Bitcoin, though. Lots of people are wondering what the future looks like for the crypto-powerhouse. While I deeply appreciate the advancements its brought us, I have some concerns about Bitcoin myself: Mining BTC isnt an option for most people While Ethereum Bitcoins alternative, there is a solid cryptocurrency out there you can invest in instead: Decred. Decred has already developed solutions to the three BTC problems I listed above, and discusses them in detail on their website . Heres my take on Decreds solutions to BTCs problems: Decred currently costs $11/DCR and is available on 3 large exchanges . Decred i Continue reading >>

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 >>

Bitcoin And Ethereum Have A Hidden Power Structure, And Its Just Been Revealed

Bitcoin And Ethereum Have A Hidden Power Structure, And Its Just Been Revealed

Bitcoin and Ethereum have a hidden power structure, and its just been revealed Close examination reveals how power is being consolidated across their networks. In cryptocurrency circles, calling something centralized is an insult. The epithet stems from Bitcoin creator Satoshi Nakamotos revelation: a monetary system doesnt need a central authority, like a government, to work. Thats such a potent idea that its morphed into a battle among crypto-enthusiasts between goodthat is, decentralized currencies and evil ones, or anything with a whiff of centralization, that are assumed to threaten the utopian view of cryptocurrencies as the vehicle for a new financial world order. Do these arguments hold any water? Emin Gn Sirer , a cryptocurrency expert at Cornell University, says in many cases the jurys still outmainly because no ones bothered to take a hard look at how decentralized these networks actually are. This piece first appeared in our new twice-weekly newsletter, Chain Letter, which covers the world of blockchain and cryptocurrencies. Sign up here its free! We dont have any real metrics yet. he says. His group aims to help change that with newly published results from a two-year-long study focused on Bitcoin and Ethereum, the worlds most popular cryptocurrency networks. Can a booming crypto-currency really compete with conventional cash? Perhaps the most striking finding is that the process of verifying transactions and securing a blockchain ledger against attack, called mining, is not actually that decentralized in either system. Bitcoin and Ethereum are open blockchain systems, meaning that in principle anyone can be a miner (see What Bitcoin Is, and Why It Matters ). But organizations have formed to pool mining resources. The researchers found that the top four Bit Continue reading >>

Decentralization In Bitcoin And Ethereum

Decentralization In Bitcoin And Ethereum

We have been conducting a longitudinal study of the state of cryptocurrencynetworks, including Bitcoin and Ethereum. We have just made publicour results from our study spanning 2015 to 2017, in a peer-reviewed paperabout to be presented at the upcoming Financial Cryptography and Data Security conference in February [1] . Here are some highlights from our findings. Bitcoin nodes generally have higher bandwidth allocated to them than Ethereum.Compared to our previous study in 2016 , we see that the median bandwidth for a Bitcoin node has increased by a factor of 1.7x. The typical Bitcoin node has much more bandwidth available to it than it did before. Higher allocated bandwidth indicates that the maximum blocksize can beincreased without impacting orphan rates, which in turn affectdecentralization. If people were happy about thelevel of decentralization in 2016, they should be able to increase theblock size by 1.7x to clear almost twice as many transactions per secondwhile maintaining the same level of decentralization. Some people argue that increasing the maximum block size would also prohibitively increase CPU and disk requirements. Yet these costs were trivial in the first place, especially compared to today's transaction fees, and have come down drastically. For instance, a 1TB disk cost $85 on average in 2016 and $70 in 2017 [2] . To date, we have seen no sound, quantitative arguments for any specific value ofthe maximum block size in Bitcoin. Arguments on thistopic have consisted of vague, technical-sounding-yet-technically-unjustifiedargumentation, bereft of scientific justification. Thedissonance between the technical-soundiness of the arguments and theactual technical facts on the ground is disconcerting for atechnological endeavor [3] . Ethereum is Better Dist Continue reading >>

Microsoft Eyes Role For Bitcoin, Ethereum In Decentralized Id

Microsoft Eyes Role For Bitcoin, Ethereum In Decentralized Id

Microsoft Eyes Role for Bitcoin, Ethereum in Decentralized ID Feb 13, 2018 at 11:15 UTC|UpdatedFeb 13, 2018 at 13:37 UTC Software giant Microsoft has said it sees potential for public blockchains in supporting decentralized identities and will explore the possibilities within its Microsoft Authenticator app. In a blog post released on Feb. 12, Microsoft'sIdentity Division doubled down on its belief that blockchain technology is the right solution to store, maintain, protect and distribute users' identification information in a tamper-proof and decentralized environment. Ankur Patel of Microsoft's Identity Division stated in the post, "Some public blockchains (bitcoin, ethereum, litecoin, to name a select few) provide a solid foundation for rooting DIDs, recording DPKI operations, and anchoring attestations." That said, the company admitted that scaling is a key obstacle before a decentralized ID authentication can be available for millions of users simultaneously. As such, the firm explained that it now eyes on developing additional layers to achieve the scaling goal. "To overcome these technical barriers, we are collaborating on decentralized layer-two protocols that run atop these public blockchains to achieve global scale, while preserving the attributes of a world class DID system," Patel wrote. For now, the firm will "experiment" with decentralized identities by adding support for them into its Microsoft Authenticator app, which is already used by millions worldwide. In what could be seen as a dig at Facebook, which is widely and controversially used across the internet for access to different services and sites, the post said: "Rather than grant broad consent to countless apps and services, and have their identity data spread across numerous providers, individual Continue reading >>

More in ethereum