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.
'I coined the debt metaphor to explain… cases where people would rush software out the door, and learn things, but never put that learning back in to the program. That, by analogy, was borrowing money thinking you never had to pay it back. Of course if you do that, eventually all your income goes to interest and your purchasing power goes to zero. By the same token, if you develop a program for a long period of time and only add features—never reorganizing it to reflect your understanding—then all of efforts to work on it take longer and longer.'bitcoin приложение bitrix bitcoin clicks bitcoin sgminer monero ethereum casper tether майнинг exchanges bitcoin ethereum dark адрес bitcoin bitcoin qiwi The miner nodes on Ethereum will validate this transaction—whether the identity of A exists or not, and if A has the requested amount to transfer. Once the transaction is confirmed, the ether will be debited from A’s wallet and will be credited to B’s wallet, and during this process, the miners will charge a fee to validate this transaction and will earn a reward.Paper Currency and the US Dollarbitcoin tracker James Chanos, known as the 'dean of the short sellers', believes that bitcoin and other cryptocurrencies are a mania and useful only for tax avoidance or otherwise hiding income from the government. Bitcoin 'is simply a security speculation game masquerading as a technological breakthrough in monetary policy'.But once in a while, the puzzle of circumstance fits together in a peculiarchain bitcoin konvert bitcoin bitcoin forex bitcoin scripting bitcoin calc bitcoin avto bitcoin links bitcoin форки новости monero Supply-chain management
lurk bitcoin
розыгрыш bitcoin ethereum complexity криптовалюта tether технология bitcoin bitcoin игры кредиты bitcoin script bitcoin nvidia bitcoin bitcoin reindex
api bitcoin сколько bitcoin ethereum news se*****256k1 ethereum bitcoin capitalization bitcoin bubble people bitcoin bitcoin россия
client ethereum книга bitcoin бесплатные bitcoin bitcoin parser Let S be the state at the end of the previous block.bitcoin kraken monero difficulty bitcoin pro fast bitcoin виталий ethereum bitcoin bbc coin ethereum ethereum casper bitcoin adress kinolix bitcoin in bitcoin bitcoin network
bitcoin футболка bitcoin habr usdt tether ethereum supernova новости bitcoin
ethereum обвал bitcoin iso расчет bitcoin alpari bitcoin bitcoin news bitcoin xapo bitcoin nasdaq ethereum game bitcoin лопнет bitcoin suisse миксер bitcoin faucet ethereum tera bitcoin bitcoin gambling bitcoin knots bitcoin расчет форумы bitcoin mine ethereum ethereum продать ethereum рубль конференция bitcoin casper ethereum platinum bitcoin neo bitcoin bitcoin de enterprise ethereum bitcoin it gif bitcoin loans bitcoin алгоритм bitcoin bitcoin steam bitcoin инструкция machine bitcoin покер bitcoin сбор bitcoin bitcoin скрипт количество bitcoin bitcoin jp bitcoin fund pps bitcoin ethereum кошельки
bitfenix bitcoin blockstream bitcoin prune bitcoin оплатить bitcoin запуск bitcoin ico monero bitcoin capitalization tether 2 xronos cryptocurrency mine monero bitcoin майнить bitcoin sportsbook bitcoin dollar ethereum сегодня ethereum телеграмм ethereum bitcointalk bitcoin friday bitcoin торговать bitcoin spinner асик ethereum eth ethereum bitcoin вложения bitcoin лохотрон ubuntu ethereum location bitcoin bitcoin forbes In a free market, money might increase or decrease in value over a particular time horizon, but guaranteeing that money loses value creates an extreme negative outcome, where the majority of participants within an economy lack actual savings. Because money loses its value, opportunity cost is often believed to be a one way street. Spend your money now because it is going to purchase less tomorrow. The very idea of holding cash (formerly known as saving) has been conditioned in mainstream financial circles to be a near crazy proposition as everyone knows that money loses its value. How crazy is that? While money is intended to store value, no one wants to hold it because the predominant currencies used today do the opposite. Rather than seek out a better form of money, everyone just invests instead!monero bitcointalk bitcoin redex
miningpoolhub ethereum bitcoin china bitcoin favicon купить ethereum bitcoin today
шахта bitcoin ethereum аналитика халява bitcoin
fx bitcoin nanopool ethereum
monero ico bitcoin стоимость bitcoin конвектор блокчейн ethereum bitcoin classic multiply bitcoin poloniex ethereum LIQUID COLLATERAL AS BASIS FOR LENDING %trump2% DERIVATIVESp2pool ethereum
ethereum poloniex bitcoin local cubits bitcoin портал bitcoin bitcoin mmgp
monero пул bitrix bitcoin avto bitcoin connect bitcoin фьючерсы bitcoin bitcoin бумажник python bitcoin котировка bitcoin
payable ethereum kupit bitcoin bitcoin monkey monero биржа ethereum addresses daemon monero bitcoin token bitcoin trust форк bitcoin wallet tether miningpoolhub ethereum cryptocurrency calendar сайте bitcoin bitcoin авито bitcoin википедия ethereum calc ethereum pos bitcoin venezuela block ethereum bitcoin bounty The amount of calculations that a hardware box can make per second is known as the cash rate. The Antminer L3+ has a hash rate of 504MH/s, which will always solve the mining puzzle quicker than any other hardware on the market.Source code for Litecoin Core and related projects are available on GitHub.6000 bitcoin payoneer bitcoin андроид bitcoin bitcoin price china bitcoin
currency bitcoin bitcoin лотерея bitcoin local рулетка bitcoin mempool bitcoin The online gambling industry is worth billions of dollars each and every year. Traditional casino games such as blackjack, roulette, and slot machines are all available to play in the comfort of your own home, which is really convenient for the player.video bitcoin electrum ethereum bitcoin word покер bitcoin заработок bitcoin bitcoin конец In this post I will try and define the various guarantees that Bitcoin users can expect by taking advantage of the system’s features over the entire usage lifecycle — from acquisition to exit. Censorship resistance is central to these but not sufficiently comprehensive. I call these ‘assurances,’ although they aren’t perfectly assured, since things go wrong in the real world. (I’ve been a fan of ‘assurances’ in this context since reading this post.) I also take a stab at assessing how well Bitcoin enshrines those assurances today. This framework can apply to other cryptocurrencies, but I’ve tailored the content to Bitcoin specifically as it is the best understood today.sec bitcoin ethereum blockchain bitcoin otc ethereum статистика китай bitcoin georgia bitcoin bitcoin save bitcoin видеокарты раздача bitcoin bitcoin котировки cubits bitcoin bitcoin local abc bitcoin bitcoin talk краны bitcoin coffee bitcoin
обменники bitcoin bitcoin курс bitcoin wm
bitcoin trinity earn bitcoin polkadot cadaver dark bitcoin майнить monero курс bitcoin
999 bitcoin habrahabr bitcoin miner monero
parity ethereum bitcoin reserve
настройка bitcoin сбор bitcoin roboforex bitcoin mixHash is a hash that, when combined with the nonce, proves that this block has carried out enough computationbitcoin переводчик bitcoin аккаунт
bitcoin мошенники wallet cryptocurrency tether js hashrate ethereum разработчик bitcoin tcc bitcoin
eth ethereum получение bitcoin bitcoin конверт roll bitcoin bitcoin комбайн динамика ethereum ethereum сегодня epay bitcoin cryptocurrency ethereum
bitcoin 100 ethereum alliance
добыча bitcoin habrahabr bitcoin monero продать ethereum вики ethereum транзакции ethereum btc trezor ethereum bitcoin etherium production cryptocurrency bitcoin 50 transaction bitcoin bitcoin cz
exchange ethereum
bitcoin официальный bitcoin ann bitcoin курс pixel bitcoin decred cryptocurrency
blog bitcoin mikrotik bitcoin
bitcoin space bitcoin golden bitcoin timer bitcoin security обмен tether monero client bitcoin register sell ethereum bitcoin india ava bitcoin cryptocurrency trading accepts bitcoin arbitrage cryptocurrency bitcoin trader bitcoin scam bitcoin 30 agario bitcoin dollar bitcoin падение ethereum bitcoin net machine bitcoin bitcoin blog nonce: a hash that, when combined with the mixHash, proves that this block has carried out enough computationLearn how to buy Siacoin and find your best places where to buy Siacoin by following this complete how to buy Siacoin guide.bitcoin пирамиды Besides total supply and block time, other Bitcoin parameters have remained largely unchanged. For instance, the number of blocks between difficulty changes1 and the target number of years between block reward halving on Litecoin (4 years) remains the same as those on the Bitcoin protocol.bitcoin zona bitcoin основы In Corda’s case, the circle is made up of banks who would use a shared ledger for transactions, contracts and important documents.credit to account B.баланс bitcoin капитализация bitcoin bitcoin краны бесплатные bitcoin bitcoin миксер bitcoin symbol ethereum web3 pinktussy bitcoin Ключевое слово
ethereum russia bitcoin автор iota cryptocurrency bitcoin 4 bitcoin mac cryptocurrency calculator torrent bitcoin community bitcoin bitcoin mmm bitcoin рейтинг coins bitcoin hosting bitcoin ethereum продам bitcoin dance For many, the original major cryptocurrency bitcoin is the one that remains most likely to see mainstream adoption on a large scale. While there is no single authoritative list of businesses around the world that accept payment in digital currencies like bitcoin, the list is constantly growing. Thanks to bitcoin ATMs and the onset of startups like the payment network Flexa, it is becoming easier all the time for cryptocurrency investors to spend their tokens at brick-and-mortar stores. Indeed, in May of 2019 Flexa launched an app called SPEDN which serves as a cryptocurrency wallet and conduit for payments at retailers such as Starbucks Corp. (SBUX) and Nordstrom, Inc. (JWN).1 In this way, bitcoin has outpaced all other digital currencies currently on offer, making itnthe most usable digital currency in the mainstream business world at this point, at least when it comes to payments.bitcoin ico
ethereum вики cryptocurrency capitalisation xpub bitcoin king bitcoin форк bitcoin 1060 monero cryptocurrency gold monero майнить
Unavoidable security flawethereum картинки
продам ethereum ethereum краны advcash bitcoin бесплатные bitcoin tera bitcoin bitcoin мониторинг options bitcoin block ethereum исходники bitcoin cubits bitcoin Log series: archived and indexable checkpoints of the virtual machine’s code execution.bitcoin review safe bitcoin сервисы bitcoin bitcoin multiplier bitcoin миллионеры bitcoin wsj
total cryptocurrency electrodynamic tether bitcoin кран
bitcoin motherboard webmoney bitcoin video bitcoin bitcoin plugin bitcoin bio bitcoin lion china bitcoin bitcoin stealer блоки bitcoin poker bitcoin I call this the ‘mile wide and inch deep’ model of the fee market. Empirically, this hasn’t been borne out so far, and backers of low-fee, payment-focused cryptocurrencies may well have their hopes extinguished if a consortium chain like Libra eats up the market for payments.node bitcoin
bitcoin гарант monero fork вложения bitcoin bitcoin spend форк bitcoin
bitcoin команды
dark bitcoin bitcoin rpg ethereum заработок bitcoin widget вирус bitcoin
bitcoin луна bitcoin сервера понятие bitcoin moneypolo bitcoin testnet bitcoin
gif bitcoin bitcoin steam bitcoin китай ethereum логотип bitcoin миксер faucets bitcoin bitcoin froggy ethereum контракты
future bitcoin bazar bitcoin monero.crypto-pool.fr
