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 >>
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 >>
Okay, Wtf Is Ethereum?
A beginners guide to the worlds second most popular cryptocurrency. By now, chances are pretty good that you've heard of bitcoin, the cryptocurrency unleashed on the world in 2009 by a mysterious person or group that goes by Satoshi Nakamoto. Maybe you've heard it's the currency that fuels massive darknet drug markets like the now-defunct Silk Road . Or maybe your encounter with the cryptocoin was more benign and you saw one of the weird looking bitcoin ATMs in a convenience store. But unless you're already pretty involved in the cryptocurrency world, you may not have heard of ethereum, the second largest crypto asset that's recently been giving bitcoin a run for its virtual money. Even if you have heard of ethereum, you may be at a loss when it comes to explaining how it differs from bitcoin. In either case, you've come to the right place. Ethereum is often touted as a "world computer." What that fancy language really means is that ethereum is a platform for the creation of decentralized applications (dapps), using what are known as smart contracts . Smart contracts are bits of code that automatically execute an action after certain requirements have been metsay, sending a slice of an app's profits to investors after a predetermined date has passed. Bitcoin has smart contracts, too, but ethereum makes them really easy to use since they're baked into the system's design. All of this takes place on a blockchain, which bitcoin uses, too. All a blockchain does is act as a public ledger that lists everything that goes on in the network in real-time. It's the tool that makes the whole thing possible. The blockchain, and thus the ethereum network, is distributed across thousands of computers (or "nodes") around the world. It's also "Turing complete," which means that smart c Continue reading >>
Fin How Can Ethereum Be Leveraged In Fintech?
Bitcoin may be the longtime darling of the cryptocurrency world, but Ethereum enthusiasts will tell you that the second most valuable cryptocurrency by market cap in fact holds the most potential for innovation in the financial services space. While we dont take sides, that possibility is intriguing, particularly considering how Ethereum might be leveraged in financial technology. Below, well unpack whats already being built and the possibilities the technology holds. Weve covered the basics of Ethereum in a separate post , but there are a few key features worth reiterating before diving into its applications. is a protocol that uses underlying blockchain technology to create a platform for developers one that hosts decentralized applications based on smart contracts; is Turing-complete, meaning that programs built on Ethereum can theoretically solve any computational problem. Ethereum itself functions like a distributed Turing machine; uses a tradeable currency called ether, which can be used to pay fees on the network; expands on many other cryptocurrencies in that its primary function is to power the apps built upon it (called dapps), as opposed to tracking and storing ownership records of the currency; is highly flexible, and can therefore fill a number of roles in both fintech and in other industries. Given its functionality, Ethereum can theoretically be used to build any application that requires a third-party intermediary that is, a trusted outside party that can facilitate a transaction or exchange, whether or not money is involved. Ethereum lowers the barriers to entry by making it easy for any developer to code a new application, decreases costs for both developers and users of their applications, and makes transactions on these applications secure and verif Continue reading >>
Ethereum: Everything You Want To Know Aboutgas
Gas keeps Ethereum Blockchain alive, thanks to it we can transfer Ether and other Ethereum tokens such as: GameCredits (GAME), OmiseGo (OMG) or Golem (GNT), it also allows to smart contracts to do their job. In this blogpost Im going to explain: what is Gas? how is it used? and why is it so important for the future of Ethereum? Important: Dont be misled by the Token named GAS which is something completely different. Ethereum blockchain is run by nodes that keep the blockchain state but also calculate new blocks. New blocks are needed to change Blockchains state e.g. move Ethereum from one account to another. Calculation of the new block is made by miners, to cover their effort transaction sender must pay a fee. Transaction fee depends on complexity of transaction sender wants to make, if its a regular send Ether transaction or more complex one like create smart contract (smart contract a special kind of the blockchain account, that can not only keep Ether but also computer program with its state). Sending Ether from one account to the other costs 21,000 Gas. On the other hand creating smart contract which is responsible for handling OmiseGo Token costed 1,197,977 Gas. So the more complex transaction, the more Gas we need to pay for its execution on Blockchain. Main complexity factors are: operations performed by the smart contracts code e.g. arithmetical operations data that is stored on blockchain e.g. storing information in the smart contract or updating an amount of Ether on the account We know more or less what Gas is, but how much does it cost? The answer is as always it depends. Each transaction sender (e.g. person who is sending Ether) is defining price of Gas for created transaction (e.g. 1 Gas = 0.000000001 ETH). If the price is high enough, transaction will b Continue reading >>
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 >>
What Is Ethereum? A Guide To Ethereum Explained Ethereumprice
One of Ethereums most well known creators, Vitalik Buterin describes Ethereum as a world computer. Ethereum can be accessed by anyone in the world with an internet connection, and users can interact with its computational features without permission. Ethereum can be used for data storage, financial transactions, land ownership and much more both imagined and yet to be imagined. Ethereum is decentralized; a record of all Ethereum transactions are stored on thousands of different computers around the world. In traditional systems, data is far more centralized, and it can become enormously expensive to achieve the same level of distribution (and thus security) that is enabled by Ethereum. Ethereum is trusted; thanks to cryptographic signatures and complex mathematics, Ethereum can be interacted without a 3rd party. Information entered into the network is immutable (will not change) and ownership of said information can be proven by its rightful owner. Ethereum is pseudonymous; with cryptographic signatures, users who own information on Ethereum do not need to release personally identifiable information to prove their ownership. Transacting value across the Ethereum network can be done pseudonymously, and personal details can be revealed only if the sender chooses to do so. Ethereum is fast; storing and transferring data on Ethereum can happen in seconds, whilst retaining the trust, privacy and decentralized (secure) fundamentals with which Ethereum provides. Once the protocol fully matures and the Ethereum application layer is established, the system will provide utility that is several orders of magnitudes greater than alternative options today. Of course, Ethereum is still a very young technology. It launched in June 2015 and is still working through a number of upgrade Continue reading >>
What Is An Ethereum Token: The Ultimate Beginners Guide
What is An Ethereum Token: The Ultimate Beginners Guide Angel Investors, Startups & Blockchain developers... To a beginner, the entire concept of Ethereum and Ethereum token can get very confusing very fast. The idea that Ethereum not only has its own currency (Ether) but also has tokens on top of that which can act as currency themselves, can be a little mind-boggling. Before we even begin understanding what Ethereum tokens are all about, its important to grasp some basic concepts. The entire Ethereum network is a giant mass of nodes (computers) connected to one another. In fact, the entire network can be visualized as a single entity called the Ethereum Virtual Machine or EVM for short. All the transactions that have happened and will ever happen in this network are automatically updated and recorded in an open and distributed ledger. So what is the advantage of this? Before we explain that it is important to know what a smart contract is. Smart contracts are how things get done in the Ethereum ecosystem. When someone wants to get a particular task done in Ethereum they initiate a smart contract with one or more people. Smart contracts are a series of instructions, written using the programming language solidity , which work on the basis of the IFTTT logic aka the IF-THIS-THEN-THAT logic. Basically, if the first set of instructions are done then execute the next function and after that the next and keep on repeating until you reach the end of the contract. The best way to understand that is by imagining a vending machine. Each and every step that you take acts like a trigger for the next step to execute itself. It is kinda like the domino effect. So, lets examine the steps that you will take while interacting with the vending machine: Step 1: You give the vending mac 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 Ethereum? How Bitcoin's Major Rival Works | Money
Bitcoin gets the lions share of the attention in the cryptocurrency space. But Bitcoin isnt even the best-performing cryptocurrency around especially now that it has lost 40% of its value from its peak at the start of this week to around $12,000. That means Bitcoin is up around 12-fold this year. By comparison, rival Ethereum has seen its value jump more than 60 times from $8.40 at the beginning of the year to around $530, and thats counting Fridays big across-the-board slide in cryptocurrency prices. What is Ethereum? And does it deserve the same exuberance (rational or otherwise) that Bitcoin is garnering today? Heres everything you need to know. 1. Ethereum is the second-largest cryptocurrency in the world. The total value of Ether in the global marketplace is more than $53 billion . While that still pales in comparison to the $205 billion value on Bitcoins circulating around the world, ethereum is well ahead of other major digital currencies such as Ripple ($21 billion), Litecoin ($10 billion), and IOTA ($9 billion). 2. Ether can be mined like Bitcoin, but with a key difference. Both Ethereum and Bitcoin rely on so-called blockchain technology , a system in which transactions are not recorded and verified by a central bank or institution but rather by a decentralized network of cryptocurrency users. As incentive for those users to serve this function, they are allowed mine for new Bitcoin or Ether to create wealth. However, the total number of Bitcoin that is allowed to circulate in the system is capped at 21 million . And right now, its estimated that there are roughly 16 million Bitcoins in circulation. So from that perspective, Bitcoin is maturing fast. Ethereum, on the other hand, does not have a similar overall cap. There is, however, an annual limit on new is Continue reading >>
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 >>
Beginner's Guide To Erc-20 Tokens: Digital Assets Built On Ethereum
If youre reading this article, youre probably doing your homework on the cryptocurrency space. Which also means that youve likely ran into the words token and tokenization more than a few times already during your research. What you may not know is that the vast majority of this so-called tokenization is created though ERC-20 otherwise known as the Ethereum token standard. In laymans terms, an ERC-20 token is simply a cryptocoin thats built atop Ethereum the smart contracts platform powered by ether , the current #2 cryptocurrency by market cap thats flirting with unprecedented all-time price highs at press time. ERC-20 tokens can be built any time, anywhere, and for pretty much any reason you can possibly imagine, too. And the vast majority of the Initial Coin Offerings (ICOs) we see today use Ethereums token standard to create their tokens. The point? ERC-20 tokens are surging in significance. So heres a quick 101 guide to help you better understand how these tokens work. 8 ERC-20 Tokens Will Only Become More Dominant Consider the ERC-20 standard as a set of rules: In order for a token to be created and transacted on the Ethereum network, it must follow these rules. Theres no wiggle room. Within these rules, though, is a great deal of freedom for developers. That means that the ERC-20 standard is very adaptable and can be used to make a limitless variety of tokens, each with varying functionalities. Currently, the most popular use for ERC-20 tokens is ICOs . How about an example: A new blockchain project will need funding, so they develop an ERC-20 token to crowdfund from investors. These tokens are released and investors have an opportunity to make gains while the original project keeps developing their own blockchain. If youve heard of the OmiseGo (OMG) token , the Continue reading >>
Is Ethereum More Important Than Bitcoin?
By Adam Hayes, CFA | Updated June 13, 2017 1:57 PM EDT Blockchain technology, the distributed ledger system that underpins the digital currency Bitcoin, is getting a lot of attention from Wall Street lately. With uses ranging from cross-border payments to settlements and clearing of over-the-counter derivatives to streamlining backoffice processes, the potential for disruption in the financial industry and elsewhere is growing more real each day. While bitcoinis the most widely used and well known use case of blockchain, Ethereum may be thekiller app that allows for this disruption to finally take place. The tokennative to the Ethereum blockchain , Ether (ETH), has recently risen to over $10 per ETH, and the market capitalization of all ether is nearly $800 million, making it the second most valuable blockchain behind bitcoin (which represents approximately $6.5 billion of value).What is Ethereum and why is it interesting? Ethereum was developed to augment and improve on bitcoin, expanding its capabilities. Importantly, it was developed to feature prominently smart contracts:decentralized, self-executing agreements coded into the blockchain itself. Ethereum was first proposed by Vitalik Buterin in 2013 and went live with its first beta version in 2015. Its blockchain is built with aturing-complete scripting language that can simultaneously run such smart contracts across all nodes and achieve verifiable consensus without the need for a trusted third party such as a court, judge or legal system.According to its website ,Ethereumcan be used to codify, decentralize, secure and trade just about anything. In late 2014, Ethereum raised over $18 million in bitcoinby way of a crowdsaleto fund its development. The Ethereum Virtual Machine (EVM) is capable of running smart contr 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 >>
4 Answers - What Is Ethereum Used For?
Over $20,000 in your IRA or 401k? Here's how to move to Bitcoin. Open a Bitcoin IRA now for massive growth potential on a tax-deferred basis. Get a free info guide now. Think of Ethereum as a platform for building decentralized services. For storage, you can think of a service like Dropbox as a centralized service. There is a one set of servers that is maintaining your files and one company in control of it. An alternative like Storj is now available where your files are encrypted and stored on many, many different servers with many different participants. There is not single company in control of your files. Storj has decided to move to Ethereum because it provides a better development platform and users. In the future, youre going to see a lot of service being offered in the decentralized space. Ethereum is fuel for a giant decentralized computer based on the blockchain. Its not actually fuel. But its made to work like a fuel because Decentralized computers cannot be shut down by a single entity at will. There needs to be a mechanism to make its operations finite to avoid wastage of computing power and energy. This is why ethereum is made to be consumed by Decentralized Apps (Dapps). Running a decentralized computer requires computing power. This computing power is provided by miners. Miners need incentive to keep themselves running. This is why ethereum is produced as a reward for mining. Note that ethereum isnt really transferred from a Dapp developer. Its simply consumed by the app-developer and produced by the computation-provider. Like all commodities, fuel can be exchanged as if it were currency. Its value will depend on supply and demand. Since Ethereum is granular, fungible, transferable, durable and scarce, its as good as currency. Learn blockchain. Earn up Continue reading >>