Ethereum refers to a decentralized computer program that runs on smart contract or programming application that run on their own without the possibility of down, censorship, forgery, and arrangement by a third party. Ethereum is more than just a virtual currency or altcoin like a Bitcoin. Both Ethereum and Bitcoin are two most popular types of cryptocurrencies. Developers can create markets using the Ethereum blockchain technology and also capable of saving the data of debts, lead in funds, and make buying and selling transactions without any third party interference. The programming language used is Turing Complete.
An Ethereum Project is undertaken by an Ethereum Foundation agency from Switzerland. Ethereum was first created by Vitalik Buterin, a programmer, and author. Buterin is a Russian who grew up in Canada, but now he lives in Switzerland. Buterin was firstly interested in Bitcoin in 2011. He works as a writer at Bitcoin Magazine.
In 2014, Ethereum launched a presale and gained wide response. The distribution of Ethereum at the presale was 60 million Ethers for the contributors. 12 million were used for the development, mostly used by the Ethereum Foundation. They successfully made 5 Ethers in every 15 – 17 seconds for the miners. In which, 2-3 Ethers were given to the miners who can solve the solution of mining puzzle. Ethereum was officially launched on July 30, 2015.
How Many Ethers are Available on the Market?
The number of available Ethers depends on the agreements. At the time of a pre-sale occurs, there is an agreement every year that will generate 18 million Ethers every year. However, in 2017 there will be more deals based on the growing application and the use of Ethers. There will be a consensus called Casper. However, such agreements will occur under a decentralized Smart Contract which is no party control or dominate it. All of them are basing on the condition and safety of the network.
What’s the Difference between Ethereum and Bitcoin?
- The creation of a block on Bitcoin occurs every 10 minutes while on Ethereum every 12 seconds.
- Bitcoin block reward to ½ every four years while Etherium block reward is the same every year or based on the consensus. Ethereum is closer to the economic model.
- The cost of Bitcoin transactions is competing with each other while the fees on Ethereum transaction is calculated by the bandwidth, the difficulty in computer programs, and the necessity of storage data.
- At the start of Bitcoin launch, a miner can get more Bitcoins because they were not done by many people, while Ethereum is a crowdfunding so that the number of Ether on the presale is distributed to many people. Unlike the Bitcoin that what Satoshi Nakamoto says, he has 1 million bitcoins a he was the first miner.
- Bitcoin Mining Pool is required on Bitcoin, while mining Ethereum does not be necessary require a pool. Ethereum uses a Ghost Protocol.
- Bitcoin uses an SHA-256 algorithm, while Ethereum uses a hard hashing memory algorithm called Ethash that relieves the use of ASICS, and encourages decentralize mining by individuals who are using GPUs while bitcoins are not.
Dapps dan Smart Contract
Dapps consists of Decentralized Application. Whereas, a Smart Contract is a simple automation system which is decentralized on two or more parties and those parties put digital assets so that the parties are involved in the contract and capable of doing the distribution of assets they have. The Contracts that are occurring with Ethereum are stored inside the Blockchain Ethereum, open and accessible to the public.
Daaps have some similarities with Smart Contract but differ on two things. The first one, parties or participants in the contract are not limited, and the second is, Dapps does not have to be in financial form. For example, BitTorrent.
What is Gas?
The meaning of Gas here is not a fluid chemical substance that we often heard in natural science study. Gas is the necessary cost to conduct a transaction or data exchange on Ethereum. The gas was first set at 10 Szabo or 1/100,000 Ether. The Blocks are created on the transactions using Ethereum are limited, so you have to pay a premium block to make a larger transaction. Gas is also used as a bulwark against hacker attacks, one of which is DDOS (Denial of Service Attacks). The harder, bigger, or more distributed data, the greater the gas required. Nowadays, the price of Gas is fixed. But as the Gas price grows follows the dynamics of Etherium growth.
What is Blockchain Ethereum?
Blockchain on Ethereum is essentially the same as the Blockchain in Bitcoin. Blockchain Etherium is a public ledger in the form of the Ether transaction data by the users and publicly accessible by Ether users. Blockchain uses a Cryptography protocol to keep it safe. Dapps and Smart Contract run over Ethereum Blockchain.
The saving of Ether is using a virtual wallet which you can download the Ether Wallet software program or with online Ether wallet service.
What is Ehterium mining? Ethereum is obtained by mining. You can mine Ethereum from the network by using the Ethereum Software miner or purchasing an Ethereum Cloud Mining. To buy a cloud mining that mines Ethereum, you can invest in Eobot or Genesis-mining.