What is ethereum, In this world of cryptocurrency, if Bitcoin is king then Ethereum is Queen and it’s better then bitcoin.
In the last few months Ethereum has also increased significantly and in today’s time, it is one of the most promising Cryptocurrency. If we talk about Ethereum, then this is a rising star in the world of CryptoCurrency. It has achieved its status very soon and if I talk about it now, it has secured second place in the CryptoCurrency List. In this article, I will help you understand Ethereum and as a beginner, you will learn everything about it that you should know.
After its launch in 2015, the value of ether (there’s currency) has increased by more than 6,800 per cent. If we talk about the figures till 2018 then Now the price of 1 Ether has come to nearly $ 500. After Bitcoin, if any CryptoCurrency has gained such popularity then it is only Ethereum. So, today I thought about why you should be given full details about Ethereum so that you also know about it already so that you will be able to understand about it and to buy it. Then without delay, let us know what is ethereum and how it is different from Bitcoin.
What is ethereum?
So as Ethereum’s official project website says:
“Ethereum is a decentralized platform for applications that run exactly as programmed without any chance of fraud, censorship, or third-party interference.”
“Ethereum is a decentralized platform for applications that run programmed through any scope of fraud, censorship, or third party intervention.”
But what is special in it? All software works just as they are programmed.
So what Ethereum’s blockchain’s code is, it can not be altered, tempered or hacked again. So that this cryptography of tamper-proof to be a great application of this feature is sure that this is blockchain technology.
Ethereum, also called Ether, is the third most valuable Digital Money after Bitcoin and whose market value is in second place. The technology that works on it is called Ethereum Blockchain.
History of Ethereum
A Russian programmer Vitalik Buterin created Ethereum at the end of 2013. He did this formally announce January 2014 at the North American Bitcoin Conference in Miami, the USA of tamper-proof this Russian programmer
Since this is the second-biggest cryptocurrency since Bitcoin, Ethereum has always been compared with Bitcoin. But it has been found that Ethereum has been considered to be better than many types of Bitcoin. So let’s know about it.
The work of both of them is almost the same, but there is some difference between them.
1. Shortening of Block Times –
It takes about 15 seconds to mining blocks in Ethereum, which is from the 10-minute rate in Bitcoin’s. By making a quick move, Blockchain takes very little time to confirm the transaction data, which can lead to more transaction.
2. Having more Sophisticated Fee Structure –
transaction fees in Ethereum are based on storage needs and network usage. They are based on Bitcoin transactions block size and compete with each other.
3. Having more sophisticated mining –
Bitcoin mining requires ASICs (Application-Specific Integrated Circuits), which requires a large amount of capital investment to mine. The algorithm of Ethereum’s mining has been designed keeping ASIC-resistance in mind so that mining can easily be decentralized.
4. Not having more transaction fees –
Transaction fees are less in Ethereum compared to Bitcoin.
5. Using more and more technology –
In Ethereum, currency, as well as third-party applications are also allowed to run in Network. In Bitcoin, only currency is allowed to run in Network.
6. Much Profit for Miners –
Miners earn much profit compared to Bitcoin in Ethereum.
How does Ethereum Price Affect?
Since Ethereum has been launched since then, its value has been gradually increasing, so the price of bitcoin has increased significantly.
There was a considerable decrease in Ethereum price in the middle because someone had declared its founder dead, which was a rumour, due to which the cost of Ethereum decreased by 20% in one day. Recently many big companies have invested well in Ethereum, which has led to a substantial increase in its value.
Ethereum gives more Focus on “smart contracts”
Now the thing is that what are these Smart Contract? So let me tell you that this contract is written in the code, which the Creator (s) uploads in the blockchain. If any contracts are executed anytime, all the nodes running in the network run them, which are later uploaded to Blockchain, and similarly, they are stored in Public Ledger, which is theoretically tamper-proof.
Small contracts are structured like “if-then statements” when certain conditions are fulfilled then that program meets that contract.
Because all the computers which are in the network, are tracking all the transactions which are happening in the digital ledger, so it is not possible to tamper or tease this thing. If somebody has tampered with it, then everyone will know about it.
Vitalik Buterin (CEO) – With the help of Bitcoin in 2011, Vitalik discovered cryptocurrencies and blockchain technologies. He saw Bitcoin Magzine in 2012 to understand Bitcoin. After getting Theil Fellowship in 2014, he dropped out the University of Waterloo to work full-time in Ethereum project. Vitalik understood that what blockchain technology has to offer in the future and in 2013 he invented Ethereum.
Gavin Wood (CTO) – Vitalik Meet Gavin through a mutual friend in 2014. He made the smart contract language Solidity. For Ethereum Virtual Machine (EVM), he also wrote the first yellow paper on the Ethereum blockchain.
Jeffery Wilcke – After Inception, he is looking the implementation of Go Programming on Ethereum.
Ming Chan – He is working as Ethereum’s Executive Director and oversees Ethereum Blockchain’s regulatory and legal matters.
Total how many Ethers will be produced?
Many people know how much bitcoins will be produced. But this is not Ethereum which will be produced or mine, because it is Ether.
Ethereum is a network that is based on blockchain technology, and Ether is a cryptocurrency that runs this network.
Ether will be issued by block mining process at the constant annular linear rate. This total annual ETH which will be made in pre-sale will be 0.3 times.
Made in Presale 60,102,216 Ether.
It’s 0.3 times is, 18,030,664.8
So this way about every year approx.18 million Ether becomes.
Mining of Ether
Ethereum blockchain is kept safe by Ether, which is an incentive for miners.
The supply of Ether is limited to 18 million annually. In every 12-14 second, there is a new Ethereum block mine, and 5 Ether’s reward is given to the computer that has mine it.
Ether can be mine from CPU and GPU mining, by mine blocks on ethereum blockchain.
Ethereum’s Popular Wallets
- Hardware Wallets – Trezor, Ledger neno s
- Mobile Wallets – Jaxx (iOS, Android), Coinbase (iOS, Android), Ethereum Wallet (iOS)
- Desktop wallets – Jaxx (Windows, Mac OS, Linux), Coinbase
- Web wallets: CoinPayments
- Paper Wallets – MyEtherWallet, Classic Ether Wallet, EthAddress
The ETH, ETC split, The DAO, and The Hack
Decentralized Autonomous Organization (DAO in short) was added to Ethereum blockchain so that it could work as a Venture Capital Firm that no one neither owns nor operates. It was made with smart contracts that used to execute DAO tokens, with the possibility of working on their basis.
In June 2016 it was launched with a crowdfunding of $ 150 million.
Hackers hacked immediately after the launch.
DAO Tokens of US $ 60 Million was removed due to a DAO faulty code.
Immediately after that, a Hard Fork was implemented on the Block 192000 of Ethereum blockchain so that the loss of DAO token holders could be refunded. This Hard Fork created a new version of the blockchain by treating the hacked transaction as invalid.
With this, ETC (Ethereum Classic) was born.
Ethereum Classic’s blockchain is similar to Ethereum Block 192000 where this Hard Fork was implemented.
Users who do not like the hard Fork’s idea, instead of upgrading to a new version, keep mine from the old version only.
Since then, according to the versions of the block chains, it is different from each other. ETC (Ethereum Classic) is traded on an exchange platform and offers the same functionality of decentralized apps and smart contracts.
Ethereum Use-Cases: Making Science Fiction a Reality
There are use-cases of Ethereum, which are being developed.
Some of them are:
Golem is the world’s first decentralized and open sourced supercomputer that is developed on Ethereum and anyone else can use it.
This computation power has been available from small personal laptops to the contribution of large data centers.
As a user of this platform, you have run a website, you can calculate a difficult computational problem or you can run a long code with additional computational code.
You can also run miners by using additional computer resources and can mine cryptocurrencies.
It gives birth to such an economy where computing power is unused, it can be used properly.
In this way, anybody can take computers on rent in exchange for any money.
Brass Golem, which was introduced by Golem, is the first such application, which made the computer graphics computation much faster.
Similarly, there is Slock.it (Blockchain + IoTs).
How many people use ethereum?
Today there are more than 12 million cryptocurrency wallets, which are held by ether. Their number is also increasing gradually.
What is Ethereum’s Future?
The future of Ethereum is not only bright as a digital currency, but it is also bright as a platform to run smart contracts and DApps.
It is accelerating from a centralized economy to the decentralized, borderless, and allowed less migration of the global economy.
Decentralized applications will disrupt and change industries such as finance, entertainment, real estate, academia, insurance, healthcare, public sector, and social media.
As the internet’s inventors had no idea that social media and cloud computing applications would reach this extent in the coming decades, similarly, what would be the future of based applications on Ethereum blockchain.
After D AO Hack, the future of Ethereum seems promising. In Volume terms, Ethereum has already become the most traded cryptocurrency of 2017.
In other words, maybe Ethereum’s prices will increase.
To be up to date about Ethereum, you can follow the links below:
- Ethereum WhitePaper
- Ethereum DApps
I sincerely hope that I gave you complete information about what ethereum is and I believe you guys have understood about ethereum. I am convinced of all the readers that you too share this information with your neighbours, relatives, friends so that we will be aware of our interactions and will all benefit from it. We need people’s support from you so that we can bring you even more new information.
My always try is to do that I always help my readers, if you have any doubt of any kind, then you can ask me comfortably. I will definitely try to solve those Doubts. Please tell us what you think about this article Ethereum so that we can get a chance to learn something from your thoughts and improve something.