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What is Ethereum? How is it different from Bitcoin? How do you get Ethers? What does the future look like for Ethereum? Ter this tutorial, Jakob Mayer will response all thesis questions and more.
What is Blockchain and why is it significant to understand what Ethereum is?
To understand what Ethereum is and why it is needed, it is significant to very first define the term ‘Blockchain’. To best understand what Blockchain is, the easiest way is to visualize an Excel spreadsheet with the same information on it stored on thousands of computers. Whenever someone switches this spreadsheet, every user has the capability to see this switch instantly.
The Blockchain database is not just stored on one laptop or server, but on thousands of devices. This makes all existing gegevens publicly accessible and lightly verifiable. Also, hackers cannot attack a single database due to it being stored on thousands of computers. Te brief, Blockchain is a decentralized database that is semi-transparent to anyone and less vulnerable to hacker attacks because the database is stored on thousands of computers.
What is Ethereum?
Ethereum is an open source software podium based on blockchain technology, enabling software developers to create decentralized applications.
What is the difference inbetween Ethereum and Bitcoin?
Ethereum and Bitcoin are both Blockchain-based technologies. The largest difference inbetween Ethereum and Bitcoin lies primarily te the use of their technologies. Bitcoin only offers a Blockchain-based application. This is namely the capability to send and receive from a digital currency, that being Bitcoin. The Ethereum Blockchain on the other mitt, not only provides the capability to receive and send payments but also permits all decentralized applications to be treated through the Ethereum Blockchain network.
Also, the Ethereum network has a digital currency called Ether. This can be mined by miners, similar to Bitcoins, and serves Ethereum developers to make payments for services and payments to use the Ethereum network. Another advantage of the Ethereum Blockchain overheen the Bitcoin Blockchain is the so-called Brainy Contracts.
A Brainy Contract is a rekentuig code that permits an operation to be performed when a previously determined condition occurs. For Bitcoins, thesis Brainy Contracts are limited to sending and receiving payments. The Ethereum Network, on the other forearm, permits developers to develop a Brainy Contract for a multitude of operations. For example, a Clever Contract could be used to fulfill a service.
One problem with Blockchain technologies is known spil ‘forks’. Thesis are switches te the Blockchain code. Thesis need to be done ter part to toonbank network congestion or make operations more efficient. Such forks vereiste be agreed within the community and carried out at the same time, otherwise individual applications will no longer work without corresponding updates. Such forks have bot necessary for Bitcoin but also for the Ethereum network on several occasions.
How do you get Ethers?
Spil mentioned before, the Ethereum Network has its own digital currency called Ether. Ethers can be mined similar to Bitcoins. During mining, Ether blocks are found using sophisticated laptop operations ter the Ethereum network. For the newcomers among you, this may not be the ideal solution for Ether. It is lighter to acquire Ether te a crypto exchange. Coinbase and Openbreken are fairly popular options for such. Here you can exchange your Euros at the current daily exchange rate for Ether. Of course, if you own Bitcoins you can also trade Bitcoins for Ethers. Your Ether can be saved ter a wallet below.
Here are some different options to choose from.
- For the more advanced among you, a paper wallet might be the safest option.
- For beginners, the pagina myetherwallet.com may be more adequate. There, you can create your virtual wallet for free with your wallet address. From the crypto exchange, you can then send your freshly purchased Ether to that wallet.
- Spil another safe wallet option, you should take a closer look at so-called hardware wallets. Thesis wallets are similar to USB tucks and store your cryptocurrencies within such. For this, wij can especially recommend the Ledger Nano S Wallet.
Spil a software developer, there is also the question of how you can become part of Ethereum yourself and develop your own applications. Spil mentioned above, Ethereum is an open source network — meaning anyone can become part of the community and develop products for free. A good kicking off point for interested developers is this webstek. This is the official Ethereum Beginners Guide for software developers.
What does the future look like for Ethereum?
The development of applications using the Ethereum Blockchain enhanced dramatically ter 2018. With the strong growth of digital applications requiring Blockchain technology, the Ethereum network is also expected to practice further growth te popularity te 2018 and beyond.
Of course, with the increase te popularity and the development of more and more Ethereum applications, there are also some issues and challenges that the Ethereum team needs to overcome. The fattest challenge is to increase the number of confirmed transactions vanaf 2nd. Bitcoin can presently confirm about three to four transactions vanaf 2nd. Ethereum can presently confirm 20 transactions vanaf 2nd. At the uur, however, crypto-transactions are not yet a mass phenomenon and are only carried out by a minority of Internet users.
That being said, spil Blockchain and Blockchain network transactions become a mainstream trend, it will be necessary to be able to treat thousands of transactions vanaf 2nd. To enable this, the Ethereum Developer Team is working on a technology called Casper. According to Ethereum founder Vitalik Buterin, this Casper technology will be available ter the summer of 2018. With this Casper technology, up to one million transactions vanaf 2nd can be confirmed. From then on, it is also possible to treat mini transactions via the Ethereum Blockchain. The year 2018 brings a loterijlot of excitement te any case, and hopefully a loterijlot of progress within the Ethereum Blockchains.
You might want to take a look at this infographic about the history of Ethereum and how it could overtake Bitcoin this year.