What is Ethereum digital currency?
Ethereum digital currency (etherium, Ethereum) Is a decentralized electric currency made on the basis of innovative blockchain technology and with the introduction of smart contracts. Ethereum platform is a unique product, on the basis of which any user has the opportunity to create his new online project, Thus, Ethereum goes far beyond the usual digital currency and bypasses its own main rival in terms of multifunctional capabilities - bitcoin.
The accepted designation for the exchange ticket of the digital currency Ethereum - ETH.
The emergence of the first digital currency bitcoin forever turned the money world upside down, changing a person's perception of currency and foreign exchange transfers. The rest of the digital currencies that appeared right behind btc have their advantages and disadvantages., but only one altcoin is very close to achieving its own older brother and is ready to make him a real competitive struggle - this is ethereum. In this review, we'll look at what Ethereum is like and how it works., how the new digital currency Ethereum is arranged and what opportunities await it.
History of appearance
The idea of creating the Ethereum project belongs to a young Canadian software developer with Russian roots, Vitalik Buterin. Carried away by digital currencies in 2011 year he made the 1st print edition entirely dedicated to them - Bitcoin Magazine. IN 2013 year Buterin lit up with the idea of making his own altcoin, outlining the mechanisms of work of ethereum on the pages of its publication, and then enlisting the support of a group of enthusiastic developers, Ethereum project was presented on the Kickstarter crowdfunding platform, which helped to attract the 1st investment in the amount of 18 million US dollars. At the development stage, the ethereum payment system intrigued the world's largest companies in the field of IT technologies and money, including:
– IBM
- Microsoft
– Acronics
- Savings bank
Distinctive personalities
As well as no matter what kind of digital currency, ether ethereum is a decentralized platform and an independent currency unit. This means, that eterium is an independent project and no government or organization in the world has the ability to regulate the course or manage the network itself. The idea of creating the Ethereum project belongs to a young Canadian software developer with Russian roots, Vitalik Buterin. Carried away by digital currencies in 2011 year he made the 1st print edition entirely dedicated to them - Bitcoin Magazine. IN 2013 year Buterin lit up with the idea of making his own altcoin, outlining the mechanisms of work of ethereum on the pages of its publication, and then enlisting the support of a group of enthusiastic developers, Ethereum project was presented on the Kickstarter crowdfunding platform, which helped to attract the 1st investment in the amount of 18 million US dollars. At the development stage, the ethereum payment system intrigued the world's largest companies in the field of IT technologies and money, including:
– IBM
- Microsoft
– Acronics
- Savings bank
Distinctive personalities
As well as no matter what kind of digital currency, ether ethereum is a decentralized platform and an independent currency unit. This means, that eterium is an independent project and no government in the world or organization has the ability to regulate the course or manage the network itself.
After the first digital currency bitcoin appeared, it remained somewhat the only decentralized electric currency, which was widely used by web users and showed measured growth dynamics. But that appeared in 2015 year, the crypt ether has demonstrated a number of unique features, with the help of which it began to quickly gain fame all over the world. The main distinguishing feature of the ethereum currency is the presence of smart (smart) Contracts.
In ordinary words, Ethereum uses a special transaction verification technology.. The program provides control over the implementation of all obligations between the parties to the transaction (by sender and recipient, if a normal operation is done). with the help of, that the check is performed automatically by the program, but not by a person - the highest level of transaction transparency is achieved, and due to the fact, that the Ethereum payment system is based on the blockchain - there is no possibility to influence or change information about the operation and the maximum level of security is guaranteed. This makes it possible to use eth ethereum, where protection against unauthorized interference by unauthorized persons is required. Here are just a few simple examples of where Ethereum is used.:
- Socio - economic projects, such as Backfeed;
- Investment funds;
- Project for gamers FreeMyVunk, thanks to which it is possible to monetize the game rating;
- The Rudimental is the most objective crowdfunding platform;
- Etheropt - a platform for decentralized exchange of options.
Ethereum is a revolutionary platform, which is distinguished by its simplicity and accessibility for an ordinary user, thanks to, that developers use special compilers, able to simplify even the most complex processes. So even those people, who first encounter cryptocurrency and blockchain, quickly understand, what is ethereum and how does it work.
The platform on which the Ethereum currency is built is open source, which allows independent developers and enthusiasts to improve the network or create new unique online projects and various applications based on it.
Differences from Bitcoin Ethereum digital currency
When developing Ethereum (ethereum)Vitalik Buterin and the team took Bitcoin as a basis, perfecting its main advantages and adding your own ideas with best practices. The fundamental difference from btc is that, what cryptocurrency Ethereum is not just digital money, a multifunctional platform for concluding various peer-to-peer contracts. Ethereum smart contract technology is also present in Bitcoin, but the creator of the first cryptocurrency Satoshi Nakamoto deliberately cut this option, therefore, bitcoin only checks basic indicators and is not able to verify all the terms of the transaction.
Also the key difference is that, what is the Ethereum currency (ethereum) mined using a special Ethash algorithm, which requires significant memory resources. Thanks to this, individual mining is stimulated by ordinary users., unlike bitcoin mining, in which special expensive equipment is centrally used, not accessible to the general public.
How to Register an Ethereum Wallet?
To date, many convenient ways have been developed to store ethereum coins., and also use the possibility of smart contracts. Let's consider the main ones:When developing Ethereum (ethereum)Vitalik Buterin and the team took Bitcoin as a basis, perfecting its main advantages and adding your own ideas with best practices. The fundamental difference from btc is that, that Ethereum cryptocurrency is not just digital money, a multifunctional platform for concluding various peer-to-peer contracts. Ethereum smart contract technology is also present in Bitcoin, but the creator of the first cryptocurrency Satoshi Nakamoto deliberately cut this option, therefore, bitcoin only checks basic indicators and is not able to verify all the terms of the transaction.
Also the key difference is that, what is the Ethereum currency (ethereum) mined using a special Ethash algorithm, which requires significant memory resources. Thanks to this, individual mining is stimulated by ordinary users., unlike bitcoin mining, in which special expensive equipment is centrally used, not accessible to the general public.
How to Register an Ethereum Wallet?
To date, many convenient ways have been developed to store ethereum coins., and also use the possibility of smart contracts. Let's consider the main ones:
1. Ethereum software wallet for PC and mobile devices.
For that, to register a wallet for the cryptocurrency ether, download the application from the official website of the eth cryptocurrency, which is located at: http://ethereum.org. Versions available for devices running operating systems: Windows, MacOS, Linux, Android, iOS.
After installing the software, the device will start synchronizing with the server, taking some time. To successfully install the PC version, you must have several tens of GB of free hard disk space. After the process is completed, you need to assign a name to the wallet and you can start using it.
2. ETH online wallet
This option has several advantages., because it does not require the installation of additional software and does not take up space on the hard disk. It is enough to register on one of the sites, which provide the opportunity to open a wallet for the ethereum cryptocurrency. It is worth choosing reliable resources, for example blockchain.info or myetherwallet.com, which are especially popular with users.
3. Mobile wallet
Ethereum e-currency can be stored on the Jaxx multicurrency wallet, which is developed by Canadian programmers and features a high degree of security.
4. Exchange
Many exchanges provide the opportunity to open a wallet for the Ethereum cryptocurrency directly on the resource itself.. This option is optimal for buying / selling and short-term storage of Ethereum coins., because it does not guarantee a high level of security, unlike the above wallets.
Deposit and withdrawal
Many investors emphasize, that Ethereum is one of the most profitable options for investing funds today. For that, to purchase Ethereum currency there are several popular ways:
Online cryptocurrency exchangers
On these resources, it is possible to buy or sell Ethereum currency (ethereum), using another cryptocurrency, bank payment cards or electronic payment systems. When choosing an exchanger, you should take into account such moments, as its popularity among users and the availability of positive reviews on independent resources.
Cryptocurrency exchanges
A cryptocurrency exchange is not only a convenient and fast way to buy or sell e-currency ether for rubles, Dollars, bitcoins or other crypto, but also a resource where you can get acquainted with the latest news and quotes. On such sites, you can exchange information with other traders, and also withdraw funds to several crypto wallets at once. Most popular services:
- Poloniex
- liveCoin
- Bitfinex
Ways to earn Ethereum
Many users have a question - what is Ethereum for?? Eth coins can be exchanged for real money or used when shopping for goods and services on the Internet. To get cryptocurrency, ether can be bought not only in an exchanger or on an exchange, but also to mine using our own computer power. Unlike bitcoin, ether can be mined on ordinary video cards. Models are best suited for this process.:
- ATI Radeon HD 7950
- ATI Radeon R9 290
- ATI Radeon R9 280x
- ATI Radeon R9 390
The choice of the rest of the equipment depends on the model and the number of video cards. (power supplies, motherboard, cooler). Users with experience in assembling computer equipment will not have any difficulties with setting it up.. After the farm is assembled, it is worth choosing a suitable pool for mining Ethereum ether. A pool is a platform on which miners unite to jointly mine cryptocurrency and receive greater rewards by increasing the total computing power. Choosing a suitable pool for mining cryptocurrency ether, you should pay attention to such nuances:
The choice of the rest of the equipment depends on the model and the number of video cards. (power supplies, motherboard, cooler). Users with experience in assembling computer equipment will not have any difficulties with setting it up.. After the farm is assembled, it is worth choosing a suitable pool for mining Ethereum ether. A pool is a platform on which miners unite to jointly mine cryptocurrency and receive greater rewards by increasing the total computing power. Choosing a suitable pool for mining cryptocurrency ether, you should pay attention to such nuances:
- Hashrate level (the network is more powerful, the higher the likelihood of getting a mining reward faster);
- Rules for distributing rewards between miners;
- Pool popularity and reviews from other users.
In order for the ether currency to be stably mined, you need to worry about a stable and high-quality Internet connection, and for that, in order for the earnings to be higher, it is worth regularly reviewing quotes and selling cryptocurrency at the most favorable rate.
Users, who know well what ethereum is and have experience in currency mining, they say, that the investments made in mining pay off on average for 3-6 Months.
Ethereum cryptocurrency is also mined using cloud mining, which does not require large investments and the purchase of additional computer equipment. Users, those who want to figure out what the ether cryptocurrency is and get a small amount of coins can use the ETH faucets for free, which are on numerous specialized crypto resources.
Let's sum up
Ethereum radically changed the financial world and made a real revolution in the field of blockchain technology. How Ethereum works has a number of specific features., thanks to which the platform is gaining popularity:
- High level of security;
- Platform resistance to DDos attacks;
- Smart contracts, which are stored on the blockchain along with the entire transaction history.
Technology and finance experts predict and predict a great future for Ethereum, that the cryptocurrency rate is already in 2018 year can step over the mark of several thousand US dollars. The number of projects based on the ethereum blockchain is growing rapidly, and the cryptocurrency itself is the most profitable option for investment today.
