Ethereum (ETH) Review – Crypto Coin Judge
The term “Ethereum” was used in a white paper published in late 2013 by Vitalik Buterin. He was a programmer involved with the Bitcoin magazine. In order to improve the Bitcoin, he suggested that the Bitcoin cryptocurrency needed a scripting language for application development. When he failed to gain agreement, he proposed to develop a new blockchain based platform.
At the time of the public announcement of the project in January 2014, the core Ether project development team consisted of Vitalik Buterin, Anthony Di Lorio, Mihai Alisie, and Charles Hoskinson. The main goal of the project was to develop a new platform with a more general scripting language.
Under Ethereum Switzerland GmbH (EthSuisse), the formal development of the project began in early 2014. The Ethereum Foundation (Stiftung Ethereum), a Swiss-based non-profit organization, was subsequently created as well for the development of the project.
During July/August 2014, the development of the project was funded through an online public crowd sale. Since the inception of the project, there has been praise for the technical innovation of Ethereum.
Full Ethereum analysis
What is Ethereum?
It is a decentralized platform that runs applications programmed without the possibility of third-party interference, downtime, censorship, or fraud. Such applications are known as smart contracts and they run specifically on the custom-built blockchain. The blockchain is a powerful shared global infrastructure that can represent the ownership of a property and can move the value of the cryptocurrency.
Smart contracts enable app developers to move different funds in compliance with instructions provided in the past, such as a will. The developers can use the smart contracts to store registries of promises or debts. All of this can be done by the developers without the risk of a counterparty or middleman.
The biggest innovation of Ethereum is that it runs turing-complete smart contracts, which are applications that completely rely on if-then scenarios for the execution of specific terms of the agreement.
Smart contracts ensure that the corresponding clause contained in the contract is fulfilled once the predetermined condition is met. Turing-complete factors allow developers a new expressiveness in writing such innovative development codes.
The Ethereum blockchain is a distributed ledger technology that is used for keeping track of all related agreements and transactions.
Developers could use smart contracts that run on public the Ethereum blockchain for creating a market and systematically executing transactions that are based on an agreement created long ago. Smart contracts can be used for keeping track of pledges made by counterparties.
Design and issue cryptocurrency using smart contracts
1 – Developers will be able to create tradable digital coins by using smart contracts. The digital tokens created by the developers can be used as a digital currency for the representation of assets, a proof of membership, and a virtual share.
2 – The standard coin API is used by digital coins so the contract will be automatically compatible with any cryptocurrency wallet.
3 – The digital coin created by using smart contracts will also be compatible with any other contract. In addition, the exchange of this cryptocoin will also be possible using this standard.
4 – The total amount of coins in circulation can be set by the developers to a simple fixed amount or fluctuate based on any programmed rule set.
With a trustless crowd sale, kickstart a project
1 – Developers can create a contract that will hold the money until any given date or goal is reached using Ethereum.
2 – The funds will either be released to the project owners or safely returned back to the contributors depending on the outcome. Developers can even use the coin generated earlier for keeping track of the distribution of rewards.
3 – Developers can build a crowdfund for pre-selling their products. They can build a crowd sale for selling virtual shares in a blockchain organization. In addition, the Ethereum blockchain platform can be used by developers to auction off a limited number of items.
Build a democratic autonomous organization
1 – A virtual organization can be built by using block technology where its members vote on different issues.
2 – Based on shareholder voting, the developers can build a transparent association.
3 – Developers can build their own country with an unchangeable constitution and a better delegating democracy.
Create a new kind of decentralized applications
1 – Many great projects and applications are already being created on smart contracts.
2 – The developers’ business will be enhanced by operating on a cryptographically secure, tamper-proof, and decentralized network of Ether.
How to mine ETH coins
Miners need powerful hardware (GUIs), mining software based on proof-of-work (POW) algorithm, and to join a mining pool to start mining of ether.
Choosing the right mining hardware
GPUs are mining hardware that miners need to install into their computers. It can guess puzzle answers more quickly as it boasts a higher hash rate. Miners should choose the most profitable GPUs based on the initial expense of the card, hash rate performance, and overall power consumption of the hardware.
Setting up a mining rig is recommended for miners who want to earn a large number of ETH coins through the mining. The mining rig is composed of multiple GPUs and takes a week to build.
Installation of the software
1 – The next step is to install the right mining software after selecting powerful GPUs. First-time miners need to install a client to connect to the network.
2 – Geth software can be installed by programmers who are familiar with the command line. The powerful software runs an Ethereum node written in the scripting language “go”.
3 – The node can “talk” to other Ethereum nodes once the software is installed. The software connects the miners with the Ethereum network. It provides an interface to effectively deploy their own smart contracts using the command line in addition to mining ETH coins for the miners.
1 – To experiment with smart contracts or decentralized applications, it is possible for miners to successfully “mine” ETH coins on their own private network.
2 – It is essential to understand that mining of Ether on a test network doesn’t require miners to install powerful GUIs on their computer system.
3 – Miners need a personal computer with geth or any other powerful client software installed. Mining fake Ether will not be profitable to the miners.
1 – Miners need to install the mining software if they want to mine “real” ETH coins.
2 – They can download Ethminer once they have downloaded a client and their node is a part of their network.
3 – The node of miners will officially play a vital and important part in securing the network once Ethminer is installed onto their computer system.
Joining a mining pool
1 – Most of the miners are not able to mine Ether on their own.
2 – That is why they “pool” together with their computational power into “a mining pool” to improve their chances of solving complicated and complex mathematical and computational problems in order to earn ETH coins.
3 – The profits are split in proportional to how much computational power each miner has contributed to the process.
4 – Each mining pool might not be around forever and the power (computational power) of each pool is changing constantly.,
ETH has kept most of the time the second largest market cap after Bitcoin. Many new investors are flocking to Ether, which has led to a higher demand for more secure ETH wallets around the world. Investors will want to move their purchased ETH off the exchange as soon as possible. This is because cryptocurrencies are high-value targets for hackers around the world.
MyEtherWallet: One of the most popular wallets used for the storage of this digital currency is MyEtherWallet. It is free, client-side, and has an open source interface for generating Ethereum wallet.
Mist (Desktop Wallet): This is the official wallet for the storage of Ether. The wallet takes a while to get started when the lenders install this desktop wallet on their computer. The wallet systematically synchronizes with all Ethereum nodes. The wallet prompts ledgers to set a password after the sync is connected. It supports Mac, Linux, and Windows operating systems for storage and trading of ETH coins.
Trezor (Hardware Wallet): This was the first hardware wallet, that was invented for storing Bitcoin. With the MyEtherWallet web interface, it can be used for the storage of Ether coins too. The hardware wallet is a portable device and it stores ETH coins offline on a secure electronic chip. It can only be activated by ledgers when they log in with their password.
MetaMask (Desktop Wallet): The desktop wallet not only enables investors to store and send ETH coins but also provides them access to different decentralized Ethereum apps. The investors can quickly switch between the main Ethereum network and a test network due to its intuitive design.
The wallet supports Firefox and Chrome extensions. The private keys are password encrypted and should be stored by the investors on their personal computer system. They will be able to export the key at any time.
Ledger Nano S (Hardware Wallet): ETH coins are stored offline on the investor’s system. The hardware wallet is available at a price of USD65 that makes it one of the most inexpensive hardware wallets for the safe storage of ETH coins.
Investors need to sign in using the private key stored on their systems if they want to spend their cryptocurrency. This wallet comes with a small OLED screen that allows the investors to control their transactions efficiently. The security of this wallet is so robust that the investors can use it even on a hacked computer system.
Exodus (Desktop Wallet): This is the first multi-cryptocurrency desktop wallet of the world. The wallet has an attractive user interface and it is easy to use. A pie chart will show the entire portfolio of cryptocurrency when the investors open their Exodus wallet. It is the first wallet to have built-in Shapeshift for trading and exchanging different cryptocurrencies like Decred, Stellar Lumens, TenX including Ethereum.
It is known among investors for its features like a one-click email recovery and backup seed keys for the purpose of restoring the wallet, which ensures the security of the investor’s funds.
Buying Ether coins
One of the most common methods for purchasing Ether coins is from a known as an exchange. The exchanges function similarly when investors purchase traditional assets such as equities or stocks. Coinbase is considered to be one of the most straightforward and trusted exchanges for new investors to purchase Ether.
Investors can buy ETH with their credit or debit cardC. Moreover, Exchanges typically also accepts bank transfers to purchase a different type of cryptocurrencies such as Bitcoin, Ethereum, or Litecoin. If the investors already had other cryptocurrencies in their wallet, they could exchange them with ETH coins for no, or minimal, fees.
One of the most common misconceptions among the new cryptocurrency investors is that they need to purchase one whole ETH coin. New investors can purchase a percentage such as 0.25%, 0.50%, 0.75% or any other proportion of ETH instead of purchasing a whole one Ether coin.
The value of Bitcoin and Ethereum might hit their all-time high in the year 2018
1 – ETH is not actually a competing currency although it is often compared to Bitcoin. Ether is a means of purchasing services within the Ethereum platform whereas Bitcoin is explicitly a digital form of money and payment system.
2 – In December 2017, the value of Bitcoin hit a whopping USD19,000 per coin before losing about 25% of its value. Many cryptocurrency experts believe that Bitcoins will rocket above USD20,000 in 2018 and will stay there. The experts also believe that the value of the Bitcoin will see a move bigger than that if it breaks the USD20,000 barrier in the first quarter of 2018.
3 – Similarly, the value of ETH will be a consistent riser in 2018, as more digital coins and currency are expected to adopt the Ethereum blockchain platform, according to some of the leading experts of cryptocurrency.
4 – They also believe that the value of ETH coins will easily double or triple in the year 2018.
5 – The ETH coins are more stable in terms of the number of users involved in the network, market cap, and stability as compared to many other cryptocurrencies like Lisk, Ripple, Monacoin, Bitshares around the world.
Future of ETH coins
ETH has the potential to replace Bitcoin as its network grows, although Bitcoin is currently the number one cryptocurrency in the world. The commercial monetization of the Ethereum virtual machine and smart contracts make this cryptocurrency a valuable commodity to invest in as more and more digital coins or ICO’s adopt and utilize the Ethereum blockchain.
The value of ETH should grow steadily over time. The Additional security of smart contracts will be provided through cloud mining while Commercial Off-The-Shelf (COTS) aspects of the project will be lowered significantly.
It is estimated that the project will soon adapt a power of scale (POS) algorithm for mining ETH, which might encourage small-scale investors to invest more in this cryptocurrency.
Proposed use of ETH coins
In future, the Ether may be used for transferring money securely to the bank or for sending important documents to the insurance company. Today these processes require multiple steps for authentication and verification.
The use of Ether makes authentication and verification a one-step process as the information is incorruptible in the first place.
Sports betting, electricity sourcing and pricing, farm-to-table produce, the internet of things, and finance are some of the proposed uses of the ETH coins.
Summarizing ETH coins
ETH is expected to position itself as the second biggest crypto coin. When compared to other cryptocurrencies, the ETH coins are more stable in terms of the number of users involved in the network, market cap, and stability. So far, the project is achieving the goals that it was created for and it is planning to move its platform from POW to POS.
In order to maintain the stability of the digital currency, the development group is inserting a stable number of ETH coins into the market. Many cryptocurrency experts believe that the value of this digital currency or platform as you might say, will continue to grow and maybe even surpass Bitcoin if everything goes as planned.