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 >>
How To Use Ethereum - Coindesk
The thought of using ethereum might sound intimidating, but it could be rewarding. If the 'unstoppable world computer' develops according to plan, it could provide alternatives to the Facebooks and Googles that many people use everyday(as explained in " What is Ethereum? "). Ethereummight not be as intuitive as the web as we know it today, but still, anyone with a computer or a smartphone can try the platformout as long as they own ' ether 'unique pieces of code that allow updates to the blockchain's ledger. First, you need a place to securely store your ether (or at least a place to store your private keys). This brings us to ethereum 'wallets'. One caveat is that losing your private key is a much bigger deal than misplacing a password: it means losing your ether, forever. Removing trusted partiesis a two-edged sword. While intermediaries are no longer needed to verify transactions, there's no help desk to turn to for help recovering your secret key. With that in mind, there are plenty of options for wallets to store cryptocurrency: desktop wallets, web wallets, hardware wallets and paper wallets. Choosing one depends on your preferences for convenience and security. Usually these two concepts are at odds with one another: the more convenient, the worse the security (and vice versa). Desktop wallets run on your PC or laptop. One option is to download an ethereum client (a copy of the entire ethereum blockchain). There are a few ethereum clients written in different programming languages and with different performance tradeoffs. This process can take up to a couple days, and will only increase as ethereum grows. The wallet then needs to stay in sync with the latest transactions on the blockchain. Mobile clients, or 'light' clients, require less data to be downloaded to Continue reading >>
How Does Ethereum Work,anyway?
Odds are youve heard about the Ethereum blockchain, whether or not you know what it is. Its been in the news a lot lately, including the cover of some major magazines, but reading those articles can be like gibberish if you dont have a foundation for what exactly Ethereum is. So what is it? In essence, a public database that keeps a permanent record of digital transactions. Importantly, this database doesnt require any central authority to maintain and secure it. Instead it operates as a trustless transactional system a framework in which individuals can make peer-to-peer transactions without needing to trust a third party OR one another. Still confused? Thats where this post comes in. My aim is to explain how Ethereum functions at a technical level, without complex math or scary-looking formulas. Even if youre not a programmer, I hope youll walk away with at least better grasp of the tech. If some parts are too technical and difficult to grok, thats totally fine! Theres really no need to understand every little detail. I recommend just focusing on understanding things at a broad level. Many of the topics covered in this post are a breakdown of the concepts discussed in the yellow paper. Ive added my own explanations and diagrams to make understanding Ethereum easier. Those brave enough to take on the technical challenge can also read the Ethereum yellow paper. A blockchain is a cryptographically secure transactional singleton machine with shared-state.  Thats a mouthful, isnt it? Lets break it down. Cryptographically secure means that the creation of digital currency is secured by complex mathematical algorithms that are obscenely hard to break. Think of a firewall of sorts. They make it nearly impossible to cheat the system (e.g. create fake transactions, erase tr Continue reading >>
What Can You Do With It
The purpose of this page is to serve as an introduction to the basics of Ethereum that you will need to understand from a development standpoint, in order to produce contracts and decentralized applications. For a general introduction to Ethereum, see the white paper , and for a full technical spec see the yellow papers, although those are not prerequisites for this page; that is to say, this page is meant as an alternative introduction to Ethereum specifically targeted toward application developers. Ethereum is a platform that is intended to allow people to easily write decentralized applications (apps) using blockchain technology. A decentralized application is an application which serves some specific purpose to its users, but which has the important property that the application itself does not depend on any specific party existing. Rather than serving as a front-end for selling or providing a specific party's services, a app is a tool for people and organizations on different sides of an interaction use to come together without any centralized intermediary. Even necessary "intermediary" functions that are typically the domain of centralized providers, such as filtering, identity management, escrow and dispute resolution, are either handled directly by the network or left open for anyone to participate, using tools like internal token systems and reputation systems to ensure that users get access to high-quality services. Early examples of apps include BitTorrent for file sharing and Bitcoin for currency. Ethereum takes the primary developments used by BitTorrent and Bitcoin, the peer to peer network and the blockchain, and generalizes them in order to allow developers to use these technologies for any purpose. The Ethereum blockchain can be alternately described a Continue reading >>
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.  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.  "Gas", an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.   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.  The system went live on 30 July 2015, with 11.9 million coins "premined" for the crowdsale.  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).    Ethereum was initially described in a white paper by Vitalik Buterin ,  a programmer involved with Bitcoin Magazine , in late 2013 with a goal of buildin Continue reading >>
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 >>
What Can You Do In Real Life With Ethereum?
What can you do in real life with Ethereum? As I am a little bit familiar with the logistics, I will take a use case from this industry. Lets say you want to ship a pallet of goods to your friend Bob. You trust Bob, but you dont trust trucker Tom, who will carry your pallet. On the other hand, Tom does not trust you as well, maybe you wont pay? Or you do not have money to pay him at all? Therefore, you have to sign an agreement with Tom that you will pay for the shipment in a few days after delivery. Usually third party is involved in this process, legal papers, contracts are scanned, printed, signed. Can we simplify the process? Yes! We can do that with the help of smart contracts. We could define those rules in code. You make a payment for shipment to the smart contract on the day of loading. It holds the payment till the shipment delivery is confirmed by Bob. Then the smart contract releases the payment and money is transferred to Tom automatically. Lets move a little bit forward. What if we would have a GPS tracker attached to the pallet? Then we simply could eliminate Bob from this process and just release the payment automatically, then the location rule is met. It is just a very basic sample, however possibilities are endless. To better understand Smart Contracts and Ethereum, I published publication with a gentle intro to Smart contracts, and planning to provide samples, limitations, possibilities in upcoming posts. Read more: Gentle intro to Blockchain and Smart Contracts. Part 1 Continue reading >>
The Hitchhikers Guide To Smart Contracts Inethereum
The Hitchhikers Guide to Smart Contracts inEthereum Updated Oct 6th 2017, for Truffle v3.4.11 and Solidity v0.4.15. Ive been working with smart contracts for 4 years , mainly in the Bitcoin blockchain. Some projects I participated in are Proof of Existence , bitcore , and Streamium . In the past months, Ive been exploring and working with the Ethereum platform. Ive decided to compile a short guide to ease the way of future programmers learning Ethereum smart contract development. Ive divided the guide in two sections: how to get started building smart contracts in Ethereum, and a quick note on smart contract security. Getting started with Smart Contracts onEthereum This guide assumes you have a basic level of technical understanding on how cryptocurrencies and blockchains work. If you dont, I recommend skimming over Andreas Antonopoulos Mastering Bitcoin book , Consensys Just Enough Bitcoin for Ethereum guide , or at least watching this short video by Scott Driscoll . To continue ahead you should know what a public and private key are, why a blockchain needs miners, how decentralized consensus is reached, what a transaction is, and the concepts of transaction scripting and smart contracts. Two other important and related concepts youll need to understand before working with Ethereum are the Ethereum Virtual Machine and gas. Ethereum was designed as a smart contract platform. Its origin is actually linked to a critique made by Vitalik Buterin on bitcoin as a very limited smart contract platform. The Ethereum Virtual Machine (EVM) is where smart contracts run in Ethereum. It provides a more expressive and complete language than bitcoin for scripting. In fact, it is a Turing Complete programming language. A good metaphor is that the EVM is a distributed global computer wh Continue reading >>
These Are 8 Real World Uses For Ethereum
You are at: Home Knowledge These are 8 real world uses for Ethereum Lets talk today about some real-life applications of ethereum. First of all, Ethereum is a huge platform that is used to build decentralizedservices, also called dapps (decentralized apps).However, just like a large container ship or an airplane, Ethereum also needs fuel to work. This fueliscalled Ether and is traded publicly on several cryptocurrency exchanges. So,very important, Ethereum is NOT the same as Ether.We wrote a very detailed post about that topic some while ago, just click here if you want toknow more. Anyways, now that you know that Ethereum is not the same as Ether,lets talk about what it can be used for. As mentioned before, Ethereum is a huge network. This network is formed of thousands of computers all around the world. This is also called a decentralized network. The main benefit of this is that the computers that form it cannot be shut down, or controlled, by a single entity. And well, a secure and decentralized network has unlimited applications. Ethereum will completely revolutionize the health-care system. All hospitals around the world can store, access and sharetheir patients records. This isa key factor in developing new vaccines for viral outbreaks, or even preventing them in the first hand. You can go toa doctor in Thailand for a check up when you are on holidays and to ahospital in New York when you are back home again, and both will have the same information about you. But thats not all. Remember the whole wearables craze a couple years ago? Well, like it or not, those devices are here to stay. Now imagine that the data your smart watch records every day are automatically shared with every hospital in the world. This way, patterns could be found in medical conditions like Continue reading >>
What Can Ethereum Do For You?
Is Ethereum similar to Bitcoin? Well, sort of, but not really. The structure of the Ethereum blockchain is very similar to bitcoins, keeping a shared record of the entire transaction history. Every node in the network stores a copy of this history. Ethereum is a distributed public blockchain network that enables developers to build and deploy decentralized applications (dapps), thats the advantage and first step to get into blockchain technology. The most important thing when creating this kind of application are smart contracts. Smart contract is just a phrase used to describe computer code that can facilitate the exchange of money, content, property, shares, or anything of value. Zero downtime (Ethereum guarantees that applications will never go down and can never be switched off) Smart contract code is written by humans, smart contracts are only as good as the people who write them Ethers (coins) should be kept in a safe place or at least we should have a place to store our private keys. This brings us to Ethereum wallets. Important thing about these networks is that losing your private key is a much bigger deal than misplacing a password, it means losing your ether forever. The Ethereum dapps are split into two types: applications that manage money and applications in the other category, which includes voting and governance systems. If you are interested into developing your first decentralized application, this is the initial setup you need: Continue reading >>
What Is Ethereum? Michele D'aliessi Medium
The ultimate guide to understand Ethereum in simplewords. In a nutshell: Ethereum is a powerful, decentralised, super computer running on blockchain technology . Some key innovations make Ethereum a unique project with all the necessary building blocks to create a new, better, more secure, privacy and trust oriented internet. And thats a big deal. Well, first of all it is decentralised: this global computer runs on a network of machines (nodes) distributed around the world (more specifically, it runs on a blockchain ). This means that it cannot be stopped, you cant just unplug it or halt its operations. In fact, anyone who wants to run a node of the network can do so from any computer connected to the internet, without asking for permission. Also, being decentralised, it cannot be easily hacked because there is no central point of failure. Its ubiquitous, where there is internet there is Ethereum. - by Gavin Wood Who actually runs Ethereum then? It doesnt belong to anyone. There is no single entity who controls it, as of today it is governed by a community of software developers that write code and run the nodes of the network using their computers. With no single entity managing it, Ethereum is a truly decentralised project which is being built by the crowdsourced work of many skilled computer programmers. The efforts for improving Ethereum technology are coordinated by the Ethereum Foundation , a non for profit organisation whos mission is to  build a more globally accessible, more free and more trustworthy Internet. Its an open project, in fact anyone can make use of this global computer. It can have as many users as we want, and anyone can both read the code that such computer is running or write new code that the computer can run. This means you can run your own Continue reading >>
Ethereum: The Not-bitcoin Cryptocurrency That Could Help Replace Uber
Ethereum: The not-Bitcoin cryptocurrency that could help replace Uber 2017 has been a big year for Bitcoin: its highest price ever , a major disappointment from the SEC for No. 1 Bitcoin fans the Winkelvoss twins, and, for a moment, a value higher than gold . But another cryptocurrency has been quietly growing in volume while everyone was focused on Bitcoin. Ethereum, which is kind of like Bitcoin but slightly nerdier and more complicated, edged up against Bitcoin in its daily volume earlier this month. In plain english, Bitcoin is much bigger in terms of monetary value, but Ethereum is being used so much that it's facilitating nearly as much business. Ethereum's daily volume is now almost as large as Bitcoin's. pic.twitter.com/AFuFG8MgJx Even people who don't care about digital currencies at all have heard of Bitcoin. But according to a brief unscientific survey of the Mashable offices, it appears that approximately no one outside the cryptocurrency loop knows what Ethereum is. Ethereum is a decentralized application that supports a cryptocurrency, or digital currency, just like Bitcoin. You can pay for things online, trade money, and buy and sell anywhere that accepts it. But there's more to Ethereum than there is to Bitcoin. The cryptocurrency, called ether, runs on a "smart contract." The smart contract is a blockchain technology and "if:then" system that allows Ethereum to be traded if a certain condition is met. Bitcoin runs on the blockchain (a distributed, decentralized ledger of transactions) too, but it doesn't involve the extra step of a smart contract. Blockchain is a distributed ledger where all of Bitcoin's and Ethereum's transactions are recorded. It's totally decentralized, which means it's not run by any one person or company. Its decentralization give Continue reading >>
Create A Hello World Contract In Ethereum
Building a smart contract using the command line This page will help you build a Hello, World contract on the ethereum command line. If you don't know how to use the command line we recommend you skip this tutorial and instead build a Custom token using the graphical user interface . Smart contracts are account holding objects on the ethereum blockchain. They contain code functions and can interact with other contracts, make decisions, store data, and send ether to others. Contracts are defined by their creators, but their execution, and by extension the services they offer, is provided by the ethereum network itself. They will exist and be executable as long as the whole network exists, and will only disappear if they were programmed to self destruct. What can you do with contracts? Well, you can do almost anything really, but for our getting started guide let's do some simple things: To start you will create a classic "Hello World" contract, then you can build your own crypto token to send to whomever you like. Once you've mastered that then you will raise funds through a crowdfunding that, if successful, will supply a radically transparent and democratic organization that will only obey its own citizens, will never swerve away from its constitution and cannot be censored or shut down. And all that in less than 300 lines of code. Before you begin: Install the Ethereum CLI Learn more about contracts Please confirm that the GUI is closed before entering the geth console.Run geth to begin the sync process (this may take a while on the first run). Now that youve mastered the basics of Ethereum, lets move into your first serious contract. The Frontier is a big open territory and sometimes you might feel lonely, so our first order of business will be to create a little aut Continue reading >>
What Is Ethereum? Here's Everything You Need To Know | Digital Trends
Deep-learning algorithms help study brain waves to predict seizures Get today's popular DigitalTrends articles in your inbox: If you follow tech or financial news, youve probably seen the name Ethereum popping up over the last couple years, often in connection with bitcoin. Ethereum is a rising star in the world of cryptocurrencies , entirely digital forms of currency that grew in popularity after the creation of bitcoin by a person or group calling themselves Satoshi Nakamoto in 2009. Demand for Ethereum is so high that it may even be driving up the price of graphics cards , as miners try to generate as much currency as they can. What is Ethereum exactly, and what does it mean for the future of cryptocurrency (and maybe society)? Heres the rundown. People often refer to Ethereum as a cryptocurrency, but that isnt precisely true. It is a platform that allows individuals to conduct transactions and draw up contracts, using a currency called ether. To understand what distinguishes Ethereum from a cryptocurrency like bitcoin, it helps to understand what a cryptocurrency is, as well as the concept of a blockchain. A cryptocurrency is a form of digital currency created through encryption. A cryptocurrency has no physical form like a banknote or coin and it is not issued by a central bank or governmental authority. Units of cryptocurrency exist as data on the internet, and are created and managed through something called a blockchain. A blockchain is essentially a digital ledger, shared amongst any number of computers. When transactions occur, they are recorded in blocks; in order for these blocks to go into the ledger, they must be validated by a certain number of computers on the blockchain network. Crucially, the ledger exists, in the same form, for everyone on the networ Continue reading >>
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 >>