To get to know every inch of Ethereum, we must first understand how it can affect the whole market and society. What are the significant characteristics that distinguish it from other standard approaches in the market?
IT is a decentralised system and cannot be controlled by governmental authorities. It exercises full autonomy and has no central point of flaws and failure. Everything is spread out in the system it is being operated by thousands of nodes or computers worldwide.
Ethereum is an open-source operating system launched in 2015. It is not just a platform but a programming language that functions on a blockchain which aids in the development and building of distributed applications.
Ethereum (ETH) and Ethereum Classic (ETC)
To understand the difference between Ethereum Classic and Ethereum, we need to go through the concept of ‘smart contract’. In amateur terms, a smart contract is a code-written agreement between two parties. It states the conditions to be met by each party to execute the contract. When the conditions are fulfilled, blockchain processes the contract without any interference from a middleman.
Both ETH, ETC shared the identical blockchain before 2016 July. In 2016, the platform of ethereum was split into two distinct blockchains; ethereum and ethereum classic. Ethereum Classic came into being after a malicious attacker stole more than 50 million dollars worth of funds. It was developed as a potent weapon that would protect the platform from further attacks.
This diversification divided the people in the community. Most developers decided to switch to the upgraded version (ETH).
Who created Ethereum?
In 2013, on a white paper, Vitalik Buterin conceived the idea. He sent it out to his friends, who sent the idea out further.
Due to this, about 30 people reverted to Vitalik to further discuss the concept. He thought that the idea would be subjected to many flaws, and critical mistakes would be pointed out. But nothing like that happened.
In 2014, a team consisting of Vitalik Buterin, Mihai Alise, Anthony Di Lorio, Joe Lubin, Gavin Wood, and Charles Hoskinson announced the project publically.
The leading mind behind Ethereum, Vitalik Butrein, is a Canadian-Russian programmer and writer. He was involved in the market of Bitcoin and was writing articles for a magazine centred around bitcoins. At the early age of 23, he is now known as the ‘genius boy’ who developed the second most popular and valuable cryptocurrency platforms.
Is Ethereum a cryptocurrency?
To imbibe meaning, is an open-source platform that is decentralised and has its cryptocurrency called Ether. Even acts as a decentralised app store.
Ether, therefore, is a digital asset of that facilitates trade and payment. However, it is not just a digital currency but also acts as a ‘stimulus’ for the whole network’s apps. If any user wants to make any changes within an app, they must pay a transaction fee so the difference can be processed in the network. The transaction fee is based on how much ‘power’ is required to complete that action.
Is Ethereum similar to Bitcoin?
Bitcoin and Ethereum are compared to each other now and then. But the truth is they both are two different project implementations with entirely different aims. It has taken up the technology behind Bitcoin and has given it new dimensions.
gives users the freedom to create new decentralised applications or rework existing projects or concepts. This eliminates the need for the third party and leads to cutting off all the extra costs associated with intermediaries.
Bitcoin has developed a personality of a stable and the most successful cryptocurrency to date.on the other hand, is a multifunction platform that functions with Ether as its currency.
How do Ethereum works: Ethereum Mining
As mentioned earlier, Ethereum is based on the notions of Bitcoin’s platform and the blockchain design. and Bitcoin blockchain is responsible for storing the comprehensive history of transactions in the networks, but the Ethereum blockchain does so much more than that.
To be precise, the blockchain is a state machine based on transactions. A state machine can read multitudes of inputs and paves the way for transitions towards a new state based on those inputs. After the execution of commerce, the machine moves towards a new form.
In every state, there are millions of transactions; those transactions grouped make ‘blocks’. The transaction that goes through the process of Mining so can be added to the ledger.
consists of a process in which a group of nodes or computers complete a task that looks much like a mathematical riddle. The more power the node or computer has, the more rapid the riddle will be solved. When this riddle gets solved, it provides validity to the block. each miner competes with the other miners to achieve this block validity to get rewarded with Ether tokens.
wallet is an application that acts as a bridge to your account. The wallet notifies you of your balance, facilitates transactions and trade and connects to various applications.
wallet lets you send and manage your Ether. Many wallets let you even manage multiple Ethereum accounts.
How to Trade Ether
One can buy Ether on exchanges that take place in the Ethereum markets. You can find a business that deals and trades in Ether and is operating within your jurisdiction.
You can also trade in Ether through peer-to-peer trading, exchanging any currency like Bitcoin for Ether. This can be done virtually or in-person too.
Ethereum mining is another way in which Ethereum exchange takes place. The process of Ethereum mining rewards miners who validate the Ethereum blocks.
Advantages of Ethereum
- The main advantage that Ethereum offers lies in its blockchain technology. There are no third party or middlemen involved. This means that all decentralised apps function on their own within the network and are not controlled by anyone.
- Ethereum eliminates the possibilities of frauds and corruption within the system. The principle of ‘consensus’ is what drives Ethereum mining. Every change made within the blockchain is approved and agreed on by all the nodes within the system.
- There is no focal or central point of failure as the whole platform is spread out and decentralised. The applications are always online and are never turned off.
- The feature of cryptographic security protects the whole network from hackers and attackers.
Disadvantages of Ethereum
- It is known that Ethereum works with a fault-proof network, but it can be still prone to human error, which cannot be escaped. The system can only function as good as the codes written for their functionality. The only way to escape this error is to teach towards a consensus and write the code again. However, this goes against the principle on which blockchain functions
- There are not enough guides and tutorials available for understanding the inner workings of Ethereum. It might look like a small problem but can have significant impacts. It is hard for new investors to adapt to the platform and work with Ether.
- Ethereum is a complicated platform because it engages in multiple functions. This makes its performance a bit weak.
Significant app developments on Ethereum
Since ethereum does not just act as a trading platform, it has the potential to open the doors for the developments of decentralised apps. This could lead to the mass-adoption of blockchain technology. Currently, the network can be accessed through the indigenous browser called ‘Mist’, which accounts for a user-friendly and smooth interface. It also provides a digital wallet to store and trade ether. With Mist, users can manage, write and even employ intelligent contracts.
Here is a list of some significantly helpful apps that are performing very well in their areas of services and industries and were developed on the platform.
- EtherTweet: This app takes basic functionality from Twitter and gives way to uncensored communication.
- Gnosis is a decentralised prediction app that allows users to poll and vote on anything, be it weather or elections.
- Etheria – Looks like a twin of Minecraft, but Etheria exists ultimately on the Ethereum blockchain.
- Enhance – This is a freelancing platform that exchanges the works, especially for Ether.
- Alice – This platform focuses on bringing transparency to the process of social funding and charity by using blockchain technology.
- Provenance – Provenance, as a project, aims to create an open structure of information for users to make more precise and informed decisions.
- Bitnation – This is the first virtual nation and included most similar functions as a conventional nation, like, insurance, programmes of diplomacy, ID cards, education.
Some good books on Ethereum Mining
To gain a more profound sense, you can always dive into details. There is no better way than to read books.
Here is a list of books from which you can choose to learn in-depth
- Mastering Ethereum by Andreas M. Antonopoulos, Gavin Wood.
- Investing in Ethereum: by Oscar Flynt.
- The Blockchain Developer by Elad Elrom
- Introducing Ethereum and Solidity by Chris Dannen
- Hands-On Smart Contract Development with Solidity From Fundamentals to Deployment by David H. Hoover, Kevin Solorio, and Randall Kanna
What does the future hold for Ethereum Mining?
Despite being around for so many years, started getting light from mainstream media and public attention in the last few years.
Many experts think thatis revolutionary and can change how the Internet functions and change the course of services and industries that have existed for decades.
Ethereum, Vitalik Buterin, is being very cautious and humble with his predictions regarding the platform. In a recent interview, he said that he wants Ethereum to lead in blockchain and intends to eliminate technical issues and improve the future security framework.
All in all, the opinions around the performance of Ethereum in the future tend to be quite optimistic. However, some old school experts are predicting the downfall of outstandingly successful currencies like Bitcoin and Ether.
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