What Is Ethereum?

What Is Ethereum?

ETHEREUM_GUIDE
Mar 3, 2018 by admin
9210
Do you adore cryptocurrencies lately? Have you developed an interest in the investment in cryptocurrencies? If yes, Ethereum should be on your mind too! Of more than 1300 cryptocurrencies,
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An Introduction

Do you adore cryptocurrencies lately? Have you developed an interest in the investment in cryptocurrencies? If yes, Ethereum should be on your mind too! Of more than 1300 cryptocurrencies, Ether has reached the top of the charts along with the flag bearer, the bitcoin! Though there’s a long way to go for Ethereum and its token, the Ether to attain the stature of the Bitcoin. It is still a great cryptocurrency with a lot of potential for the future! Here’s all that you should know about Ethereum now!

What is Ethereum?

Ethereum platform was introduced in 2013 by Vitalik Buterin, a cryptocurrency researcher, and programmer. He is the genius who has worked so hard for Ethereum. Ethetreum is an open platform based on blockchain technology. Its operating system is based on smart contract (script) functionality. After Bitcoin Ether is a pioneer in blockchain cryptocurrency. It is based on distributed ledger and blockchain technology. Ether can be used to transfer from one account to another and it is also used to compensate the payments of the miner. The platform was supported by crowd-funding and went live after two years of trust and faith.

What are the features of Ethereum?

Let us give a detailed look at several features of this currency. They are described hereunder. Let us take a quick review!

  • On 30th July 2015 Ethereum Came into existence with 11.9 million coins which were pre-mined for crowd sale.

  • In the year 2016 somehow with the collapse of the DAO project ethereum was separated in two Ethereum (ETH) and Ethereum classic (ETC).

  • Ethereum is a decentralized network and it turns into complete Virtual Machine which can execute scripts from an international network of public nodes.

  • In 2017 worth of ethereum currency went 13000 % higher. Ethereum raised approximately $ 25 million through crowd-funding. Ethereum mining can be done through GPU or on cloud mining with Hash fire or by Genesis mining.

In simple words, Ether is a digital currency which uses encryption techniques to secure its transactions and is decentralized! It can be traded while the blockchain methodology protects the details like units of currency generated or transferred! Well, Ethereum is a blockchain network, an operating system which bears smart contract scripting! A front-runner along with bitcoin as a popular blockchain platform, its token Ether is the cryptocurrency associated with it! All this is being operated independently, without any central banks involved to validate the transactions.

As we have by now understood the definition of Ethereum, as well as its highlighting features, it’s now time to look for certain technical aspects of Ethereum. We will now read about:

  • What are smart contracts?

  • What is Ethereum Virtual Machine?

  • Why this currency got split?

  • What is the Difference between Ether and Bitcoin?

  • Do You Have Ether?

  • What Do Developers Do with Ethereum?

  • What is the present Demand for Blockchain Developers?

  • What are the disadvantages of Ethereum?

  • What are the benefits of Ethereum?

  • Which are the Apps Built on Ethereum?

  • Conclusion

So let’s begin our hunt to understand all the technical aspects of each and every part of the Cryptocurrency Ethereum.

What are Smart Contracts?

Ethereum showcases the Smart Contract functionality! The Smart contract is a computer code which smoothes barter of information which has a value associated with it! For example, money, property, shares or content! It is programmed to self-operate when its specifics are met and manages the transaction performance extraordinarily! All this is being secured by blockchain to avoid any fraudulence, third party interference or downtime!

What is Ethereum Virtual Machine?

Ethereum offers EVM or Ethereum Virtual Machine which is its most significant creation! It is complete software which works on Ethereum network and sprints the programming code of any given decentralized application! It enables developing several applications on one platform instead of building individual blockchains for every application! EVM is to Ethereum what internet is to emails!

Do you know Ethereum got split into two? Although, the currency was working so well in the market, then what could have been the probable reason for it’s’ split? You would get the answer in the passage to come!

Why this currency got split?

In the year 2016, a set of SMART CONTRACTS was developed on this platform and it raised the record crowd-funding of $150 million. But The DAO, which stands for Decentralized Autonomous Organization got exploited as somebody claimed $50 million which created an issue. Somehow hard fork worked out the situation by rearranging the affected funds but due to this event, Ehereum got split in ETC, which stands for Ethereum Classic and ETH, i.e. Ethereum. The Ethereum was forked twice in the 4th quarter of 2016. Cyber-security of the network is increased so that hackers can be avoided.

An important decision was taken to split this digital currency. However, Ethereum still remains on number two if we look at the market statistics. Let’s give a look why Bitcoin is still so much preferred in the public, by looking at the difference between Ethereum and Bitcoin.

What is the Difference between Ether and Bitcoin?

  • The block time of Bitcoin is 10 minutes whereas ether is having 15 seconds only.

  • Transaction fees are different based on computational complexity as Ether has GAS (internal system of ether) as an internal mining system whereas in case of Bitcoin data is recorded and stored in bytes.

  • Mining of Ether generates new coins consistently whereas in case of Bitcoin rates get half by every four years.

  • GWEI is the measuring unit of the price GAS that Ether charge for every transaction but in case of Bitcoin, this price is paid in SATOSHIS per Byte. Bitcoin uses UTXO system; technically both systems are different systems and have their own pros and cons.

  • Ethereum is planned to work on hybrid system proof of stake or proof of work.

  • Median Transaction fees in case Ether is $0.33 whereas it is dollar $23 in case bitcoin.

By now we have clearly understood the difference between the top two demanded cryptocurrencies in the world. Let us now see what you can do with the Ethereum currencies if you possess any.

Do You Have Ether?

If you are an Ether owner, your blockchain is created and bonded by the Ethereum platform.

You can do online transactions with your ether,

  • Buy it,

  • Sell it or

  • Save it and

  • Earn profits with its growing value!

Launched in 2015 it has grown from $10 per Ether to a whopping $1200! However, it fluctuates and is not crash proof!

What Do Developers Do with Ethereum?

Developers use Ethereum as a software platform to develop decentralized applications and use its crypto token to pay for services used or any transaction fees on the Ethereum network! Ethereum has made the building of complex blockchain applications very simple in terms of the

  • cryptography,

  • coding,

  • resource utilization, and

  • Mathematics!

Developers have all the freedom with Ethereum to develop thousands of applications as per their needs or freewill! As we have seen the cryptocurrencies based on Blockchain technology are really useful and gives a proof of advancement in technology. Why not give a look at those who wish to work on this Blockchain?

What is the present Demand for Blockchain Developers?

There is a surge in the blockchain developer jobs in the market and the demand for blockchain developers is seeing an all-time high! Some universities and companies have introduced blockchain courses in their curriculum to meet the requirements! Their supply being low currently lead blockchain developers to earn around 200,000 USD as annual income!

Hopefully, facts regarding Ethereum, Cryptocurrency, and Blockchain are now clear to you. So it’s now time to proceed and see if this currency really has any negative side or in short any disadvantages?

What are the disadvantages of Ethereum?

  • The codes for Ethereum powered applications are written by humans and hence prone to humane errors! Any loops can lead to a cyber attack which can only be fixed by rewriting the code! This is against the Blockchain principle which is immutable and does not allow anyone to tamper with it!

  • No matter how decentralized an application is, it has a centralized governing body who decide on what happens to the application next! However, such decisions raise eyebrows and concerns over the decentralized nature of Ethereum!

Hmm, so there are several disadvantages of this advanced technology currency. But wait; there are many more advantages to disadvantages. Let’s see…

What are the benefits of Ethereum?

  • Ethereum helps build decentralized applications. Decentralized applications are safe from hackers since they are made up of codes which run on blockchains and are free from any central entity.

  • Any centralized application can be decentralized using Ethereum which makes it most sought after across various industries offering a range of services like loans to voting machinery and regulatory mechanisms!

  • Ethereum is also useful in building DAO or Decentralized Autonomous Organizations. These DAO’s are fully autonomous bodies which have no defined leadership or hierarchy! People who contribute to the organization by purchasing tokens have voting rights as owners replacing a need for centralized control!

  • No third party can intervene or make changes to an Ethereum decentralized application which is tamper resistant. They are encrypted hence secured from hackers and cyber thefts!

  • The decentralized applications powered by Ethereum have nil downtime and can never shut down!

Do you know the use cases of Ethreum Technology? If not give a look at the following use-cases of Ethereum:

Which are the Apps Built on Ethereum?

Ethereum is used to develop many applications across various industries. A few successful ones are:

  • Weifund is a platform built on Ethereum used for crowdfunding campaigns.

  • BlockApps helps enterprises to manage and deploy blockchain apps. They empower the private, semi-private, and public industry with tools which are specifically required to bring up blockchain applications.

  • Augur is a market forecasting platform that rewards users for correct predictions! The predictions are for world-famous events brought into effect by trading virtual shares!

  • Uport helps in controlling the identities of the users by securing their personal information. The controlling rights of user data and information are with the users itself instead of third parties.

  • Provenance uses Ethereum to give transparency to supply chains! Consumers have access to all the relevant information to help them make up their minds to buy the right products!

This is just a trailer! There are lot more examples to go.

Conclusion

VitalikButerin, inventor of Ethereum has given marvelous software to the world. The road ahead for Ethereum looks bright with brilliant possibilities! The decentralization as promised by Ethereum is certain to impact the Finance, Real Estate, Education, Healthcare, and Public sectors in a positive way! Go On Ethereum! Let us know what your views on Ethereum are after reading this article. Let us know in comment section if you have any query related to Ethereum or other Cryptocurrencies.