What Is Ethereum? - Coinbase
Ether is a digital currency used for operating smart contracts on the Ethereum network. Like Bitcoin, the Ethereum network and Ether tokens are not controlled or issued by any bank or government - instead it is an open network which is managed by its users. Ethereum has been deployed in different phases. Currently the Ethereum project is in the 2nd phase, called “Homestead”. The 4 planned phases for the growth of the Ethereum network are, in order: Frontier, Homestead, Metropolis, and Serenity. Ethereum Homestead clients are working smoothly after being in beta for several months without any major incidents. However, Ethereum is still an experimental technology. Since it allows for programs to run on a virtual machine, it’s still possible that some things may still go wrong, such as poorly written smart contracts that contain bugs. While Bitcoin allows you take part in a global financial network, using Ethereum you can participate in a global computational network. This is done by means of smart contracts, which are scripts of code that can be deployed in the Ethereum blockchain. Although smart contracts are still a very new technology, they have a wide range of potential applications in many different areas, such as voting, global supply chains, medical records, the financial system, and possibly others that have yet to be discovered. The value of Ethereum is not tied or pegged to the value of any other currency. Similar to stocks or property, Ethereum's value is determined by buying and selling in the open market. The price of Ethereum changes in real time based on the number of people who want to buy or sell it at a given moment. Ethereum is traded for bitcoin, dollars, euros, yen, and other currencies in real time 24 hours a day. Depending on the demand for b 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 >>
What Is Ethereum And How Does It Differ From Bitcoin?
What is ethereum and how does it differ from Bitcoin? The ethereum cryptocurrencyCredit:Bloomberg Ethereum is a rising star in the cryptocurrency world. It has quickly become the second largest digital currency in just over two years, booming in value and spurring the rise of hundreds of new rivals to Bitcoin. Launched in 2015, the value of ether (ethereum's currency)has increased rapidly. It suffered a set back before Christmas 2017, suddenly dropping from $850 to around $690 -a drop of about 20 per cent. Since then it has continued to show intense volatility, hitting highs of $1400 in January before slumping to less than $560. Last year sawmonths of increase in the price of Ethereum and rival cryptocurrencies like Bitcoin and Litecoin.At the start of 2017, one coin was worth around... Register or log in to view this and other Technology Intelligence articles. It's free and easy to do. Access brilliant stories, features and analysis Sign up to our exclusive Technology Intelligence daily newsletter Become part of our ambitious new Tech networking community 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 >>
What Is Ether? Is It The Same As Ethereum?
What Is Ether? Is It the Same as Ethereum? By Nathan Reiff | Updated January 24, 2018 11:22 AM EST As digital currencies have become increasingly popular, youre likely to have encounteredterms and names that may have been unfamiliar just a short time ago. This industry is an exciting and fast-changing one, but it canbe difficult to stay on top of all of the terminology and to understand the technology thatunderlies the virtual currency world. Ethereum is a name that comes up often in discussions of the digital currency space, and with good reason. Alongside mentions of ethereum, you may also encounter the term ether." In this explainer, well take a look at the differences between ethereum and ether, providing clarification onhow they differ. Put simply, ethereum is a technology which makes use of the blockchain development that has undergirded most cryptocurrencies in the past several years. Before we can look at what makes ethereum unique, though, it will be helpful to explore some foundational concepts related to blockchain. In the modern, internet-focused era, we store all types of information (passwords, personal data, and financial details) on clouds and servers which are owned by major providers like Google and Facebook. There are a number of reasons for this; these companies allow the storage and retrieval of data for low costs and help to prevent the hassle of hosting and uptime. On the other hand, having personal data stored on someone elses computer makes that data vulnerable to hacking or other modes of intrusion. This is the basis of what is referred to as the centralized internet; it is one in which individuals are connected in myriad ways. Recent years have brought the advent of a decentralized internet movement, with technologies like blockchain looking Continue reading >>
What Is Ethereum? | The Ultimate Beginners Guide
What is Ethereum? | The Ultimate Beginners Guide What is Ethereum? The Ultimate Beginners Guide With the second largest market cap in the cryptocurrency world, Ethereum has drawn a lot of attention from investors and crypto enthusiasts alike. This relatively new cryptocurrency not only presents a significant change to the status quo, it also allows for the quick development and deployment of new applications. Ethereum essentially enables dozens of new and extremely innovative cryptocurrencies to exist. While Ethereums utility is obvious to programmers and the tech world at large, many people who are less tech-savvy have trouble understanding it. Weve designed this guide to appeal to both crowds and expose anyone from complete crypto beginners and intermediates to this potentially game-changing cryptocurrency. If youre interested in Ethereum, chances are you have some sort of foundational knowledge of Bitcoin . All cryptocurrencies inevitably get compared to Bitcoin, and it frankly makes understanding them much easier. Bitcoin launched in 2009 as the worlds first cryptocurrency, with the single goal of creating a decentralized universal currency. This currency would not require any intermediary financial institutions, but would still ensure safe and valid transactions. This was made possible by a revolutionary technology called the blockchain. The blockchain is a digital ledger, continuously recording and verifying records. Its used to track and verify Bitcoin transactions. Since the global network of communicating nodes maintains the blockchain, its pretty much incorruptible. As new blocks are added to the network, they are constantly validated. Similar to Bitcoin, Ethereum is a distributed public blockchain network. While both Ethereum and Bitcoin are cryptocurrencies 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 >>
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? - Coindesk Guides
Before you can understand ethereum, it helps to first understand the internet. Today, our personal data, passwords and financial information are all largely stored on other people's computers in clouds and servers owned by companies like Amazon, Facebook or Google. Even this CoinDesk article is stored on a server controlled by a company that charges to hold this data should it be called upon. This setup has a number of conveniences, as these companies deploy teams of specialists to help store and secure this data, and remove the costs that come with hosting and uptime. But with this convenience, there is also vulnerability. As we've learned, a hacker or a government can gain unwelcome access to your files without your knowledge, by influencing or attacking a third-party service meaning they can steal, leak or change important information. Brian Behlendorf, creator of the Apache Web Server, has gone so far as to label this centralizeddesign the "original sin" of the Internet. Some like Behlendorf argue the Internet was always meant to be decentralized, and a splintered movement has sprung up around using newtools, including blockchain technology, to help achieve this goal. Ethereum is one of the newest technologies to join this movement. While bitcoin aims to disrupt PayPal and online banking, ethereum has the goal of using a blockchain to replace internet third parties those that store data, transfer mortgages and keep track of complex financial instruments. In short, ethereum wants to be a 'World Computer' that would decentralize and some would argue, democratize the existing client-server model. With ethereum, servers and clouds are replaced by thousands of so-called "nodes" run by volunteers from across the globe (thus forming a "world computer"). The vision is that Continue reading >>
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 >>
Explainer: What Is Ether?
That was the biggest rise of any cryptocurrency in 2017 except for ripple . And much of ethers overall rise came at the very end of the year (65% in December alone), suggesting that ether and Ethereum, the network it runs on, are super-hot right now. You might ask: why?What is ether? What is Ethereum? And how is it different from bitcoin? Yahoo Finance is holding a live summit on cryptocurrencies, featuring a range of big-name guest speakers, on Feb. 7 in New York City. Get your ticket here . For starters, remember that bitcoin, invented in 2009, runs on blockchain , a decentralized, immutable, peer-to-peer ledger that records every transaction done in bitcoins. Bitcoin miners use expensive machines to verify and upload (or mine) bundles of transactions (called blocks) to the chain. Ethereum also runs on a blockchain, also maintained by miners. But unlike the bitcoin blockchain, Ethereum is designed specifically to carry out smart contracts, which are automated agreements for an exchange of value. (This is also called scripting.) Smart contracts are a way to cut the middleman out of financial transactions; a network of nodes carry out agreements by independently verifying them. The Ethereum blockchain not only records every ether transaction, but also the most up-to-date form of every smart contract. Ether ( ETH ) is the token of the Ethereum chain. So ether is to Ethereum what bitcoin is to the bitcoin blockchain. (Be warned: most people simply refer to ether, the token, as ethereum.) Vitalik Buterin published the Ethereum white paper in 2013, but the network did not go live until July 2015 when the genesis block of ether was mined on the Ethereum blockchain. Leading up to that, Ethereum held a token sale, nowadays popularly called an initial coin offering (ICO), in w Continue reading >>
Ethereum - What Is It?
By now, most people know Ethereum as the second most valuable cryptocurrency, currently valued at over $70 billion dollars.Well, it turns out that Ethereum isn't actually a cryptocurrency - it's a software platform that lets programmers build applications on top of blockchain technology. Within the ethereum platform is a cryptocurrency called ether that is used to power applications built on the Ethereum blockchain. Before I dive into how it works, let's lay out where it came from. Bitcoin uses a global network of computers that maintain a shared ledger called a blockchain that keeps track of who owns bitcoin. Once blockchain technology was introduced to the world, people realized that blockchains could be used to keep track of anything of value. In 2013, a 19 year old named Vitalik Buterin introduced the Ethereum white paper. It proposed an open source platform that would let programmers build blockchain applications that could facilitate the exchange of money, content, property, shares or anything of value. As with Satoshi Nakamoto's paper, Buterin's was met with widespread excitement, and software developers around the world began building toward the vision Buterin had laid out. Much like Bitcoin, Ethereum isn't owned or controlled by any one person.Unlike Bitcoin, whose creator remains anonymous, Ethereum has a leader in Vitalik Buterin (pictured below). While Buterin doesn't control Ethereum in the way that a CEO does, his word carries tremendous weight in dictating the direction of the project - this might be considered a strength or a weakness, depending on who you ask. Rumored to be an alien from the planet Neptune (or maybe Canada), this guy is really smart. The basic function that programs built on Ethereum perform are called smart contracts. Smart contracts Continue reading >>
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 >>
What Investors Should Know Before Trading Ether - Coindesk
What Investors Should Know Before Trading Ether Given the increasing prominence of the idea blockchain tech will impact enterprise business, both retail investors and investment institutions are optimistic the market could soon develop into a vibrant new asset class. However, to date, there have been few alternative digital assets that have offered a value proposition that differs from that of bitcoin, the oldest publicly traded blockchain-based cryptocurrency. Today, bitcoin appeals to investors with both a high tolerance for risk and those who believe the digital currency could one day become a stable store of value and financial rail competitive in global commerce. Though often cited as volatile, bitcoins market remains one of the more stable among digital currencies, with a market cap today in excess of $7bn at press time. Many alternative digital currencies, in turn, have offered a similar value proposition, and comparably more pronounced volatility. Amid this landscape, ether, a currency transacted through the Ethereum platform, is perhaps emerging as a contender for more adventurous portfolios. Despite a recent slump in price, ether volume has seen strong growth as more global exchanges add the asset to their offerings. Ether provides unique benefits not offered by alternative digital currencies, including bitcoin, but it also comes with its own set of risks and considerations. Interested investors can benefit from learning the basics of ethereum, as well as the key variables that influence ethers price movements. A platform for decentralized applications, Ethereum was inventedby Vitalik Buterin and announced in early 2014 . At the time, Buterin indicated in public appearances he was keen to createan alternative blockchain-based system that would offer a superio Continue reading >>
What Is Ethereum? Ethereum Homestead 0.1 Documentation
Ethereum is an open blockchain platform that lets anyone build and use decentralized applications that run on blockchain technology. Like Bitcoin, no one controls or owns Ethereum it is an open-source project built by many people around the world. But unlike the Bitcoin protocol, Ethereum was designed to be adaptable and flexible. It is easy to create new applications on the Ethereum platform, and with the Homestead release, it is now safe for anyone to use those applications. Blockchain technology is the technological basis of Bitcoin, first described by its mysterious author Satoshi Nakamoto in his white paper Bitcoin: A Peer-to-Peer Electronic Cash System, published in 2008. While the use of blockchains for more general uses was already discussed in the original paper, it was not until a few years later that blockchain technology emerged as a generic term. A blockchain is a distributed computing architecture where every network node executes and records the same transactions, which are grouped into blocks. Only one block can be added at a time, and every block contains a mathematical proof that verifies that it follows in sequence from the previous block. In this way, the blockchains distributed database is kept in consensus across the whole network. Individual user interactions with the ledger (transactions) are secured by strong cryptography. Nodes that maintain and verify the network are incentivized by mathematically enforced economic incentives coded into the protocol. In Bitcoins case the distributed database is conceived of as a table of account balances, a ledger, and transactions are transfers of the bitcoin token to facilitate trustless finance between individuals. But as bitcoin began attracting greater attention from developers and technologists, novel p Continue reading >>