Ethereum Basic Cryptocurrency Information
Essence of the ethereum
Ethereum is an independent platform for developing blockchain-based applications and services. The internal currency here is ethereum. It is used as a «crypto fuel» for transactions through smart contracts.
The creator of the service is Canadian developer Vitalik Buterin, who first presented his idea at a Bitcoin conference in 2014. A year later, in July 2015, the platform was launched into operation. It is noteworthy that at the time of launch, Vitaly was only 19 years old.
According to the developer, the idea of Ethereum appeared as a result of the desire to use the concept of a block chain for comprehensive use, and not just as a means of payment. The platform, unlike the others, is written in the programming language Turing-complete, which allows anyone to use it to create decentralized applications.
In simple terms, Ethereum is both a cryptocurrency and a decentralized functional environment. By creating a single virtual machine, it facilitated the use of blockchain technology, made the system more versatile and more convenient.
ETH has demonstrated that the blockchain can be flexible, convenient, and therefore universal. It expanded his opportunities, opened new horizons of development. Many experts believe that the appearance of Ethereum is a revolution in the world of high technologies.
Ethereum Features and Bitcoin Differences
Like many other tokens, ethereum was conceived as an improved version of Bitcoin. But with the development of cryptocurrency, the differences between digital coins became increasingly significant.
Despite the fact that Ethereum and Bitcoin are open-source blockchains, there are many things that distinguish ethereum:
- A smart contract is the basis of ethereum. Using a computer algorithm, the contract is implemented in the blockchain. Smart contract is structured in such a way that the transaction is made only if the parties have fulfilled the necessary conditions. Conditions are described mathematically and programmatically, which guarantees their reliability.
- A distinctive feature of Ethereum is to conduct all transactions under the control of the computer, while operations with Bitcoin are anonymous. This allows you to exclude the possibility of errors, as well as to use the ether to combat criminal activity, since all transactions can be traced.
The program independently performs a money transfer after receiving confirmation of network performance. You can track the transaction online.
- Unlike Bitcoin, in which the emission is limited by the program code, Ethereum does not have a border emission limit. Naturally, this inevitably leads to a depreciation of the currency in the future.
However, at the moment, developers are thinking about switching to an algorithm «Proof-of-Stake» is a specialized protection method.
- The generation time of a one block of ethereum is 15 seconds, which is much faster than Bitcoin, which takes 10 minutes for the same process. And for the extraction of each unit the miner receives 5 ETH.
- Ethereum is much more adaptive and flexible than its older brother. Ethereum works as a programmable block-chain, which allows developers to create their own applications based on it.
Compared to Bitcoin, Ethereum is not as convenient as a means of payment. And while not all services work with it. But, nevertheless, ETH ranks third in terms of capitalization, which allows it to win seats in the market.
Benefits of using Ethereum
Ethereum is both a means of payment and a platform on which other cryptocurrencies or applications can be built. This fact highlights the ether and provides it with advantages over other currencies.
Here are a few reasons to take a closer look at ethereum:
- Ethereum provides very fast and secure transactions.
- Very low transfer fee. Ethereum tariffs make up approximately 0.1% of the entire transaction amount.
- Secure transactions embedded in a smart contract
- Global and widespread use of currency
Today Ethereum is the third largest market capitalization, and more and more applications are emerging based on it. In addition, the management of the platform continues to work on partnerships with large corporations, such as Microsoft.
If ethereum continues to develop at the same pace, it will play one of the key roles in changing and shaping world technological advances.
Mining of Ethereum
Let’s see what ways you can get on your cryptocurrency purse ethers. Like other currencies, ethereum can be mined in various ways:
- Solo mining. As the name suggests, solo mining involves the extraction of ethereum only with the help of your personal capacities. It should be noted that at the moment it is almost pointless to try to mine alone, using only processors. Moreover, if you do not have enough GPU-power, then you are unlikely to be able to complete at least one block.
- Mining in the pool. For this, the user will need a powerful computer and a miner program. Pools such as Minergate or ETH Supernova are currently popular.
- Cloud mining. Renting the computing power of large companies, you get a steady passive income. At the same time do not pay for electricity and do not buy expensive equipment.
By registering on the portal, the user selects a tariff plan and enters into a contract. Its term varies from 1 year to 3 years. Many cloud mining services offer profitable referral programs. Now, the popular service Genesis Mining.
Naturally, in addition to the extraction of ether, you can always buy it through cryptocurrency exchanges or exchangers. And since the coin is very popular, as a rule, there are no difficulties with the purchase or exchange. A feature of pricing at ETH is the direct dependence of quotes on the success of projects of the same platform.
Where is the best place to store Ethereum (ETH)?
Choosing a cryptocurrency wallet, users want to maximize the comfort of use and security. We strongly recommend a careful approach to his choice, since the safety of your funds will depend on its reliability.
There are four types of purses for etherium:
- Browser online platform wallet (MyEtherWallet);
- Official local wallet from the creators of the platform (Mist);
- Multicurrency wallets for PC and smartphone (Jaxx and Exodus);
- Wallets on cryptocurrency exchanges (Poloniex, Bittrex, YObit).
Each wallet, regardless of where you register it, is assigned its own unique number. This address will consist of 40-44 random letters of the Latin alphabet and numbers.
Ethereum is a popular cryptocurrency, the capitalization of which in 2018 exceeded $ 24 billion. Ethereum as a currency and as a technology has many prospects. The project is very attractive for developers of independent applications. In addition, the idea of smart contracts is innovative and can make the broadcast even more valuable.