The Existence Of Ethereum On The Blockchain And Its Difference With Bitcoin
Blockchain
21Dec 2018
Ethereum is a platform for application developers, built on decentralized blockchain technology. For a layman, the phrases about cryptocurrencies and blockchain are automatically associated with the most popular development on the blockchain – Bitcoin. The blockchain is more than just Bitcoin. Just like for Ethereum, it is used for cryptocurrency but has an entirely different goal.
Cryptocurrency network of Ethereum is called Ether. Ether, as well as bitcoin, fulfills the functions of the circulating medium. However, in addition to payments, it is used by application developers to pay commissions and services. The process of extraction of the Ether, in general, is similar to Ether mining.
What is the difference between Ethereum and Bitcoin?
At first glance, Ether and Bitcoin seem to be identical. They do not have much in common even though both of them were built on the blockchain technology. The practical purposes of using the Ethereum platforms are not the same as that of Bitcoin.
The primary goal of bitcoin is a decentralized and anonymous means of performing transactions that are open to all network members and irreversible. The blockchain of bitcoin cryptocurrency is used only for a particular purpose - to store information about all transactions that occur on its platform.
In the blockchain of the Ethereum, all decentralized applications developed on the Ethereum are maintained, and information about software codes is recorded.
Therefore, providing a decentralized platform for application developers is the primary purpose of the Ethereum.
The primary purpose of Ether (ETH), as a cryptocurrency, is the transfer of the digital currency as an asset in the performance of an action fixed in the Smart Contract.
The Ethereum Virtual Machine
Developers often face limited functionality when creating applications on a clean block. The platform of the Ethereum, thanks to the unique technology of the Virtual Machine of the Ethereum (EVM), allows you to add any functions to the application, limited only by the imagination of the developer. Also, the platform supports applications written in any software code.
Smart contracts of the Ethereum
The Ethereum blockchain supports Smart Contracts. This is a pre-determined irreversible action that will automatically be executed when a specific condition is reached. Smart Contract can be called an automatic and stand-alone program, which, once launched into the network, excludes outside intervention.
An example of Smart Contract can be called the outcome of the bet on the result of a football match. The creators of the contract put their Ether on two different teams in the scheduled match. After the creation of the Smart Contract, no one can make a change to its terms. After the end of the match, the program looks at the result and, according to the Contract, pays one of the parties the total amount of the bet in the Ether. The action is transparent and irreversible.
Smart Contracts can be called an ideal system of contractual relations between people.
Network capabilities Ethereum
All applications that operate on decentralized Blockchain technology are entirely autonomous and exclude human or organization interference. You can only make changes to Blockchain with the consent of all network members. All actions or transactions are final and do not have a backstroke.
During the creation of the Ethereum, the complexities encountered by developers when working on a clean detachment were taken into account. Any centralized systems and applications can be decentralized with the help of the Ethereum. The simplest examples are the issuance of loans, the voting process, intermediary services. Once again - no one can change the completed actions, even the creator of the application. This excludes any corruption and fraud.
Mining of the Ether
The most effective way to mine the Ether is mining together with other members of the network, combined into a special pool. Being in a group with other miners, you will receive a reward in the form of a certain amount of Ether for generating blocks in the Ethereum blockchain.
A popular pool for miners is EtherMine. On the site of the pool, you can find tips on setting up your video card and download a special program for mining. Next, the description of the configuration process will be on the example of Nvidia graphics cards.
Step 1. Download and unpack the archive with the program ethminer.
Step 2. In the folder with the program, create a file with the extension .bat (this can be done using any text editor). You can name the file if you want.
Step 3. Save the changes in the file and run it.
After that, your system starts to work at full capacity. You can see your progress in your account on the EtherMine website. There you can change the payment threshold, for example, at 0.05 ETH. As soon as you get 0.05 ETH, you will receive a payment in this amount on your wallet.
Perspectives of Ethereum. Should You invest your money in it?
Considering a cryptocurrency as a means of accumulation and storage of all your capital is risky. It is okay to consider Ethereum as means for investment if you understand its intricacies.
Interest in cryptocurrencies has grown around the world due to the massive increase in Bitcoin(http://onlinedrifts.com/here-are-some-important-properties-that-make-bitcoin-transactions-popular/) and Ether rates. There are many new cryptocurrencies and startups on the blockchain, but many of them no longer serve those pure ideals that were laid by the founders of BTC and ETH. Many projects are developed on the Ethereum platform and operate as pyramids, being only a tool for speculators.
The progress of cryptocurrency cannot be stopped - banks, governments, large organizations are considering the use of blockchain in their work. Due to its unique capabilities for developers and ordinary people, it can be safely believed that the popularity of the Ethereum will only grow.
Harnil Oza is the CEO & Founder of Hyperlink InfoSystem. With a passion for technology and an immaculate drive for entrepreneurship, Harnil has propelled Hyperlink InfoSystem to become a global pioneer in the world of innovative IT solutions. His exceptional leadership has inspired a multiverse of tech enthusiasts and also enabled thriving business expansion. His vision has helped the company achieve widespread respect for its remarkable track record of delivering beautifully constructed mobile apps, websites, and other products using every emerging technology. Outside his duties at Hyperlink InfoSystem, Harnil has earned a reputation for his conceptual leadership and initiatives in the tech industry. He is driven to impart expertise and insights to the forthcoming cohort of tech innovators. Harnil continues to champion growth, quality, and client satisfaction by fostering innovation and collaboration.
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