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?
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 >>
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 >>
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 >>
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 >>
Popular Use Cases Of Blockchain Technology You Need Toknow
Popular Use Cases of Blockchain Technology You Need toKnow I am the Blockchain! I am invincible because I replicate myself on multiple computers. Yea like the Ultron. You cannot corrupt me. Though Bitcoin and Ethereum were my first applications. My true power is yet to be unleashed. Let me start with identity cards, badges, and things. Fancy designs can be replicated. You know about 3D printers right? How do you verify them? Some organisations provide online verification service. You can scan the card or punch in the number and verify if its authentic. But, this can be costly, you need to pay for the cloud. With Blockchain you dont have to build your own identity infrastructure, you can use Ethereums open Blockchain to store the identity details. Anyone who wants to verify just has to query the open Blockchain. Most of your ownership records are stored in paper ledgers. These can be tampered. The data on Blockchain cannot be altered. On a Blockchain there are two things. A block and a chain. At a very high level, it is just a chain of blocks. Since its inside computers, we can rule out the physical stuff. Here digital information is divided into blocks and linked together. For example consider the following blocks, each represent a country. Each of them contains the city names of the respective country. Wait, there is something more. Each of these blocks has something called a hash. A hash is a set of characters (eg. 1hi515AHA5H ). Hash is derived from the information contained in the block. The block of U.S.A has cities New York, Los Angeles, and Chicago. So the hash would be something like NYLAC (Technically thats not the case, but you get the idea). Every successive block will contain the previous blocks hash. This is what binds them together (The force). If someone Continue reading >>
How Ethereum Became The Platform Of Choice For Icod Digital Assets
How Ethereum became the platform of choice for ICOd digital assets Jason Rowley is a venture capital and technology reporter for Crunchbase News . For most of the history of blockchain-based currencies and assets, the story has been all about Bitcoin. At a market capitalization of around $40 billion, it remains the most valuable cryptocurrency . But with the rise of a new chain on the ahem block, namely Ethereum , and new ways to fund the development of new crypto-platforms with ICOs, the narrative is shifting somewhat to the entire cryptographic asset class . Today, lets take a more in-depth look at some of the historical trends in the digital currency space, paying close attention to Ethereum and its role as the platform of choice for new cryptographic assets. The number of new digital assets is on the rise In roughly the past 12 months, the number of cryptocurrencies listed on CoinMarketCap.com , a main reference site for digital asset developers and speculators alike, has increased significantly. Below is a chart compiled from the count of cryptocurrencies listed on historic snapshots of the sites main table starting with the first snapshot on April 28, 2013 (featuring a whopping seven cryptocurrencies) and the most recent snapshot from June 4, 2017 . As of the June 4 snapshot, there were 809 cryptocurrencies and other digital assets listed on the main CoinMarketCap page. As ofMonday, June 5, 2017, at around 6:00 PM Central time, there were 857 cryptocurrencies and assets listed on the site. Between January 3, 2016 the first snapshot of 2016 and June 5, 2017, the number of cryptographic assets listed on CoinMarketCap grew from 551 to 857, an increase of about 56 percent in almost exactly 18 months. As the chart shows, the pace of growth in the number of crypto-back Continue reading >>
What Is Ethereum: The All Purpose Blockchain?
Crypto and Blockchain Enthusiast, Entrepreneur, check out my website @ www.Crypt0Bits.com What is Ethereum: The All Purpose Blockchain? Many of the services we use today have one thing in common: they are governed by a central body. When we deposit money into our bank, we trust our bank to keep our money safe. When we purchase insurance, we trust insurance companies to deliver on our agreed terms. Similarly, with our Gmail accounts, we trust Google to store our personal information securely and to maintain our privacy. The centralized model has been a business standard for hundreds of years, but history has proven that it has many flaws. Governments have a mixed track record of influencing third party services for information (Remember when the US government tried to woo over Silicon Valley?). Centralized business models offer convenience, but having a single point of failure makes them vulnerable to attacks as we repeatedly see in security breaches like the Yahoo! hack and, most recently, with Equifax . Ethereum is an open-source, decentralized platform using blockchain technology that enables the development of decentralized applications and smart contracts. Decentralized applications have no middlemen and users interact all in a peer-to-peer fashion. Smart contracts are business logic coded into programs that are capable of automating, facilitating, executing and enforcing terms of agreements. Ethereums blockchain connects thousands of computers (known as nodes) around the world, forming a massive, many times mirrored world computer. Anyone can access it, upload programs, and execute programs on. Ethereum was designed to apply blockchain technology to applications beyond payments. Its platform improves upon Bitcoins as a programmable general purpose blockchain that 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 >>
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 >>
Why Use The Blockchain Instead Of A Database? What Gives Tokensvalue?
Why use the blockchain instead of a database? What gives tokensvalue? A primer on blockchain and token concepts for beginners. I see these questions asked all the time by novice investors entering the space, either for specific projects, or as a general question. So I thought Id attempt to write a detailed yet basic explanation on the utility of tokens, and what justifies the use of a blockchain. Basically, blockchain embodies a lot of game theory and incentive models. In order for a blockchain network to be valuable or useful, it has to have participants in a network, it would be worthless if Bitcoin only had me and you using it, theres not much value there in a barren network with not much utility. In order to secure participants, there needs to be some sort of incentive to attract them, the most common method is via issuance or reward of the token used in the network, the more participants, the more decentralized it is. So why not just a database, why do these projects need a blockchain? There are a few key benefits to decentralizing things instead of keeping it in a centralized server/database: Having records and data decentralized, and deployed on a blockchain makes it virtually impossible for any one party to tamper with data or records. Versus how it is now, if you host your data on lets say, your computer, you can easily edit that file, before you send it to someone else, how can I ensure I can trust you? Traditional servers or data are generally centralized, making it a likely target for malicious attacks. Just look at the Equifaxs security breaches and other cybersecurity concerns arising in recent times. Instead of having a single or limited # of servers hackers can attack, decentralization via the blockchain greatly increases the difficulty. The more partic 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 >>
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 >>
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 >>
Blockchain: A Very Short History Of Ethereum Everyone Should Read
Blockchain: A Very Short History Of Ethereum Everyone Should Read Opinions expressed by Forbes Contributors are their own. Even those who are not familiar with blockchain are likely to have heard about Bitcoin, the cryptocurrency and payment system that uses the technology. Another platform called Ethereum, that also uses blockchain, is predicted by some experts to overtake Bitcoin this year. Ethereum is an open-source public service that uses blockchain technology to facilitate smart contracts and cryptocurrency trading securely without a third party. There are two accounts available through Ethereum: externally owned accounts (controlled by private keys influenced by human users) and contract accounts. Ethereum allows developers to deploy all kinds of decentralized apps. Even though Bitcoin remains the most popular cryptocurrency, its Ethereums aggressive growth that has many speculating it will soon overtake Bitcoin in usage. While there are many similarities between Ethereum and Bitcoin, there are also significant differences. Here are a few : Bitcoin trades in cryptocurrency, while Ethereum offers several methods of exchange, including cryptocurrency (Ethereums is called Ether), smart contracts and the Ethereum Virtual Machine (EVM). They are based on different security protocols : Ethereum uses a "proof of stake" system as opposed the "proof of work" system used by Bitcoin. Bitcoin allows only public (permissionless or censor-proof) transactions to take place; Ethereum allows both permissioned and permissionless transactions. The average block time for Ethereum is significantly less than Bitcoins: 12 seconds versus 10 minutes. This translates into more block confirmations, which allows Ethereums miners to complete more blocks and receive more Ether. It is estimat Continue reading >>