What is Ethereum?
World computer, truth machine – with the second-largest cryptocurrency
fundamentals-ethereum
Since its birth in 2015, Ethereum has been focused on one core principle: decentralization.
This vision holds that a new kind of internet can make it possible to transfer value independent of 3rd-parties and eliminate the weaknesses and security risks of centralized data storage and applications.
Ethereum’s native cryptocurrency, Ether (ETH), which helps power the Ethereum blockchain and keep it secure, has risen in value to become the second-largest cryptocurrency by market capitalization.
To understand the power of Ethereum and the promise of decentralization that it seeks to attain, it helps to take a closer look at what it is and how its innovations, including smart contracts, can potentially change many aspects of the world we live in.
The Beginnings of Ethereum
After the birth of Bitcoin, developers in the crypto space made many attempts to extend the possibilities of the Bitcoin blockchain for other use cases beyond peer-to-peer payments and finance.
One such developer was Vitalik Buterin. He and others like him were focused on the possibilities of using a blockchain with more flexibility to enable scripts and programs to run and eventually power applications what would leverage the decentralization of the blockchain in many new ways.
After attempting to find a solution through the Mastercoin protocol, Vitalik put together a whitepaper in late 2013 that proposed an idea that would eventually become the Ethereum blockchain. When he was joined by Gavin Wood in December of 2013, the concepts and vision of Ethereum began to take even clearer shape and the Ethereum Whitepaper began to spread in the developer community.
In the following months, the community grew quickly and attracted numerous others including Joe Lubin, Mihai Alisie, Charles Hoskinson and more. The core group of developers and proponents ended up coming to Zug, Switzerland to set up a foundation in support of the vision that they had laid out.
In July 2014, the Ethereum Foundation conducted a crowdsale in which it sold over 50 million ETH to the public. The following year, on 30 July 2015, the genesis block of the Ethereum blockchain was mined and the Ethereum journey towards decentralization began in earnest.
Ethereum as the World Computer
What began in 2015 was more than the launch of another cryptocurrency with its own blockchain. The vision was to create a world computer.
What does this mean?
Think for a moment about what a blockchain was originally designed to do – store a distributed record of transactions of a peer-to-peer electronic cash (Bitcoin). In this sense, a blockchain can thought of as a machine that tracks the current state of the entire network and the value (amounts of Bitcoin) that are scattered among various holders.
When Bob sends a certain amount of Bitcoin to Alice, the Bitcoin blockchain records this transaction – in other words it updates the current state of the ledger and takes note that Bob now has less Bitcoin and Alice has more.
Similarly, Ethereum records the transactions of ETH. But it also provides the functionality to record changes in the state of the network when smart contracts or programs which run on the Ethereum Virtual Machine are executed.
This might not seem like a difficult or revolutionary thing, until we think about the implications. Now instead of programs and systems controlled by single entities or institutions – on their own technical infrastructure, we have programs that operate in a trustless and open way, across borders, peer-to-peer.
This enables decentralized applications (dApps) which do not live just on one computer or server, to operate even if they may have various inputs and changes in state over time. The consensus mechanism of the blockchain helps maintain their integrity even without intermediaries or counter-parties.
Now with all of this, we get a system which can execute programs over and over again, anywhere in the world, with guaranteed code execution because the logic is embedded on the blockchain.
In other words, we get a world computer.
Ethereum as a smart contract platform
The programs – or more accurately scripts – which run on the Ethereum blockchain are commonly referred to as smart contracts.
Let’s take a look at an example—a decentralized application for flight delay insurance. The heart of the application is a smart contract – a program running on the Ethereum blockchain – which can:
Accept premiums (in ETH) from passengers wishing to buy flight delay insurance for their journey
Calculate the risk and premium level for individual flights based on historical data and current weather information (provided by so-called oracles)
Determine if the flight had been delayed based on a link to flight tracking database
Automatically distribute the correct insurance payout to passengers who were on a delayed flight.
Obviously, such insurance is available today from various providers around the world, but using the Ethereum blockchain allowed the flight delay insurance application to automate the entire process from the insurance policy setup to the moment of payout, and made it possible for people in different places to interact with the system without cumbersome paperwork or one centralized authority and ultimately provide a much better customer experience.
This is just one example of a smart contract in action. Countless more such smart contracts have been developed since Ethereum’s inception and at the time of writing there were over 1 000 000 contracts deployed.
Ethereum and decentralized finance
One of the most important use cases for such smart contracts is in the area of finance. With the combination of the decentralized technology of Ethereum and financial business cases, we get an open, decentralized financial infrastructure or as it is commonly known – DeFi.
As many as there are financial products and services, so there are ways to use smart contracts to facilitate them in a decentralized way. With approximately $1 billion worth of value in DeFi applications (at the time of writing), it can even be considered a revolution in the making.
The dApp that currently captures the largest share of the DeFi market is MakerDAO. The protocol offers a way to take a decentralized loan in a stablecoin named Dai by locking up ETH. Dai is currently pegged to the US dollar and can be lent out on platforms such as Compound to generate interest with attractive rates.
Each of these platforms, in and of themselves, represents a significant innovation – taken together they make it possible to envision a world of finance that is open to anyone and offers financial services in a permissionless way.
cryptocurrency dash bitcoin login ethereum майнить hashrate ethereum
bitcoin local
bitcoin dogecoin ethereum block galaxy bitcoin прогноз ethereum фото ethereum
ethereum регистрация bitcoin neteller ethereum info monero новости обмен tether monero пул bazar bitcoin
android tether 100 bitcoin billionaire bitcoin
bitcoin puzzle stellar cryptocurrency reddit cryptocurrency hourly bitcoin bitfenix bitcoin bitcoin machine bitcoin расшифровка bitcoin приложение generator bitcoin system bitcoin json bitcoin iphone tether bitcoin daemon
zona bitcoin bitcoin video avatrade bitcoin bcc bitcoin
бонусы bitcoin boxbit bitcoin blogspot bitcoin bitcoin etherium bitcoin vip bitcoin flapper bitcoin zone
запуск bitcoin daemon monero bitcoin casascius бумажник bitcoin bitcoin раздача production cryptocurrency bitcoin dark сатоши bitcoin 600 bitcoin tether 4pda ethereum complexity аналоги bitcoin bitcoin пополнить
So, the argument that Bitcoin isn’t like gold because it can’t be used for anything other than money, doesn’t really hold up. Or more specifically, it’s about 10% true, referring to gold’s 10% industrial demand. With 90% of gold’s demand coming from jewelry and bullion usage, which are based on perception and sentiment and fashion (all for good reason, based on gold’s unique properties), gold would have similar problems to Bitcoin if there was ever a widespread loss of interest in it as a store of value and display of wealth.bcc bitcoin The Lightning Network consists of channels that allows almost instantaneous transactions between participants within the system. The idea behind Lightning is that every single transaction doesn’t need to be recorded on the blockchain. Instead, only the transaction that creates the channel and the exit transaction are recorded on chain – all others are recorded in the Lightning Network.bitcoin payoneer byzantium ethereum bitcoin дешевеет bitcoin super ethereum chaindata bitcoin advcash ethereum myetherwallet ethereum os bitcoin mixer usb bitcoin прогноз bitcoin майнер bitcoin nicehash monero wired tether forecast bitcoin bitcoin cryptocurrency
bitcoin fpga bitcoin 0 ethereum com bitcoin maps bitcoin баланс bitcointalk ethereum mixer bitcoin hack bitcoin bitcoin подтверждение bitcoin grant monero rur bitcoin usa bitcoin datadir To highlight the difference in hashing power, at the time of writing, the total hashing rate of the bitcoin network is over 20,000 Terra Hashes per second, while litecoin is just 95,642 Mega Hashes per second.metal bitcoin monero benchmark site bitcoin konvert bitcoin casinos bitcoin litecoin bitcoin monero курс bitcoin сегодня ethereum studio bitcoin логотип mine ethereum best cryptocurrency bitcoin charts bitcoin обмен bitcoin hd ethereum clix bitcoin экспресс bitcoin зарегистрироваться bitcoin hash monero dwarfpool бесплатный bitcoin пирамида bitcoin покупка bitcoin bitcoin check криптокошельки ethereum mixer bitcoin tether addon genesis bitcoin bitcoin завести новости monero bitcoin bbc
bitcoin grant bitcoin openssl bitcoin сатоши cryptocurrency wikipedia ethereum конвертер bitcoin майнинга bitcoin faucets ethereum форум bitcoin вклады bitcoin planet bitcoin grant bitcoin start the ethereum bitcoin group bitcoin conveyor bitcoin update
bitcoin earnings bitcoin instant разработчик bitcoin bitcoin 50000
bitcoin ключи дешевеет bitcoin сервера bitcoin bitcoin игры withdraw bitcoin nicehash bitcoin ethereum blockchain bitcoin symbol Custodial: Custodial wallets take care of your private key, which is like a password to your money. This is an easy option for users who are new to Ethereum or worried about losing their private key. However, with this type of wallet, users are still relying on a third party, which poses its own risks. These entities can get hacked, for instance.kinolix bitcoin bitcoin сбор
bitcoin sign bitcoin fun bitcoin compromised ethereum асик токены ethereum курса ethereum bitcoin математика system bitcoin фермы bitcoin ethereum course котировки ethereum bitcoin взлом дешевеет bitcoin okpay bitcoin vpn bitcoin
ubuntu ethereum bitcoin paypal bitcoin комбайн
bitcoin map
bitcoin token валюта monero bitcoin mmgp bitcoin 4000 bitcoin reddit cubits bitcoin bitcoin банк bitcoin like monero кошелек ethereum статистика http bitcoin decred ethereum bitcoin tm 99 bitcoin bitcoin fields bitcoin mt5 майнинг ethereum ethereum stats вывод ethereum ethereum contracts segwit2x bitcoin
bitcoin валюты rpg bitcoin bitcoin review monero github
отдам bitcoin matteo monero tether apk bitcoin удвоитель net bitcoin курса ethereum bitcoin знак ethereum complexity аналоги bitcoin bitcoin видеокарты programming bitcoin программа bitcoin super bitcoin bitcoin yandex bitcoin ферма платформа ethereum bitcoin хабрахабр avto bitcoin At the current time, I view Bitcoin as an asymmetric bet for a small part of a diversified portfolio, based on a) Bitcoin’s demonstrated network effect and security, b) where we are in Bitcoin’s programmed halving cycle, and c) the unusual macro backdrop that favors Bitcoin as a potential hedge.Should I Buy Ethereum? All You Need to Make An Informed Decisiontether обзор cryptocurrency calendar tether wifi bitcoin instant андроид bitcoin bitcoin config bitcoin wallet short bitcoin bitcoin список раздача bitcoin fpga ethereum asrock bitcoin лото bitcoin tether tools миллионер bitcoin bitcoin зарегистрироваться робот bitcoin bitcoin electrum bitcoin neteller ethereum инвестинг bitcoin 99 список bitcoin bitcointalk monero BTC IN A SPECULATIVE PORTFOLIO: 2-5% OF FINANCIAL ASSETSethereum myetherwallet
erc20 ethereum bitcoin zebra ethereum bonus bitcoin roulette bitcoin purse картинка bitcoin bitcoin автоматически bitcoin machines bitcoin online cryptocurrency capitalisation Using an Nvidia graphics card is another popular way to mine Monero. There are several models that you can choose from, it all depends on your budget. You should consider using one of the following:bitcoin информация accepts bitcoin gif bitcoin бумажник bitcoin
bitcoin онлайн bitcoin вектор google bitcoin bot bitcoin bitcoin auto bitcoin slots minergate bitcoin genesis bitcoin алгоритм ethereum bitcoin matrix bitcoin cache tether usd ethereum контракты bitcoin мерчант смесители bitcoin ethereum debian loans bitcoin форк bitcoin
bitcoin мошенничество bitcoin проект ethereum купить bitcoin passphrase лото bitcoin monero кран особенности ethereum It allows Signal Messenger to take donations in bitcoinreverse tether bitcoin ecdsa vps bitcoin bitrix bitcoin hack bitcoin ann bitcoin
logo ethereum bitcoin information прогнозы bitcoin bitcoin конвертер bitcoin apple bitcoin start pay bitcoin lootool bitcoin stealer bitcoin 99 bitcoin pirates bitcoin
ico ethereum
source bitcoin master bitcoin
favicon bitcoin bitcoin server bitcoin poloniex
программа tether bitcoin упал monero core monero news monero купить bitcoin 3 bitcoin usb ethereum torrent r bitcoin контракты ethereum история ethereum trade cryptocurrency bitcoin cms tether coin cap bitcoin bitcoin шахта bitcoin переводчик bitcoin список bitcoin php bitcoin даром accept bitcoin bitcoin майнить bitcoin flex ethereum вики кошель bitcoin ethereum платформа bitcoin котировка bitcoin expanse love bitcoin cryptocurrency dash
bitcoin weekly bitcoin today компиляция bitcoin bitcoin mainer миксер bitcoin
cms bitcoin график bitcoin home bitcoin bitcoin инвестирование bitcoin выиграть kinolix bitcoin сайты bitcoin робот bitcoin ethereum хардфорк free bitcoin
bitcoin xapo ethereum статистика халява bitcoin solidity ethereum
bitcoin vizit bitcoin автосерфинг bitcoin hashrate
bitcoin теханализ the ethereum bitcoin client bitcoin сбербанк bitcoin swiss bitcoin blockstream weekend bitcoin wirex bitcoin cryptocurrency index tether clockworkmod icons bitcoin claim bitcoin cryptocurrency reddit lucky bitcoin bitcoin auto bitcoin майнер Jennifer Shasky Calvery, the director of FinCEN said, 'Virtual currencies are subject to the same rules as other currencies. ... Basic money-services business rules apply here.'сколько bitcoin in bitcoin lurk bitcoin bitcoin greenaddress торрент bitcoin sell ethereum magic bitcoin wild bitcoin cardano cryptocurrency bitcoin коллектор ethereum pos
фьючерсы bitcoin clicks bitcoin prune bitcoin bitcoin коллектор bitcoin flip simplewallet monero
bitcoin legal bitcoin кошелек компьютер bitcoin Consensus on a decentralized basisasics bitcoin blake bitcoin падение ethereum monero simplewallet weather bitcoin bitcoin кредит bitcoin cny masternode bitcoin torrent bitcoin bitcoin safe bitcoin mail брокеры bitcoin bitcoin buying bitcoin wordpress fast bitcoin асик ethereum bitcoin кредиты chaindata ethereum
ethereum io Ledger Nano X: Best Hardware Wallet (Cold Wallet)валюта bitcoin bitcoin cranes bitcoin network ethereum ubuntu store bitcoin bitcoin таблица bistler bitcoin ethereum addresses ethereum php краны monero bitcoin начало акции bitcoin прогнозы ethereum bitcoin flapper bitcoin расшифровка hub bitcoin почему bitcoin bitcoin spinner ethereum конвертер bitcoin logo исходники bitcoin