Ethereum (ETH) – cryptocurrency review
The Ethereum cryptocurrency is a new digital currency, which, like Bitcoin, is built on the basis of the blockchain, where information about cash transactions is recorded. Recently, Ether began to be considered as a competitor to Bitcoin, which is quite justified. The technology of the platform on which the digital currency in question is used is characterized by a unique opportunity to register transactions with various assets. This happens on the basis of blockchain contracts. The usual legal formalities are not used. We are talking about smart contracts, which are considered the latest era in financial technology blockchain.
“Smart contract” is a special computer code capable of facilitating the exchange of cash, shares and other values. The computer program itself fulfills the underlying transaction, subject to the prescribed conditions.
New developments are combined with remote banking services sold via SMS. Due to its low cost, the opportunity is especially attractive for developing countries.
Ethereum cryptocurrency is of particular interest due to its innovative capabilities, which involve not only settlements with other people, but also the exchange of various resources, as well as various kinds of transactions with exchange and other assets. All this becomes possible by means of “smart contracts”, allowing to realize transactions without involving guarantors. All transactions are carried out directly by the platform itself.
In 2016, Ethereum hard fork was observed, which led to its division into two different categories. In addition to the main Ethereum (ETH), EthereumClassic (ETC) appeared. This had a significant impact on the value of the coin, as a result of which it fell. For a long time, investors ignored Ethereum, but recently it again resumed its rapid growth. At the same time, the price of both versions of the digital currency increased.
History of occurrence
The creator of Ethereum is considered the famous Russian programmer Vitalik Buterin, who works and lives abroad. It was he who, at the end of 2013, was the first to describe Ethereum in Bitcoin Magazine. In April 2014, the system was formally described by Gavin Wood in the so-called yellow book. Around the same time period, the site was described as the next generation Bitcoin platform.
Since mid-2014, they began to raise money for the development of the system. For this, crowdfunding was used – a way of collective financing, which is based on voluntary contributions. They could be made by everyone who wanted to become investors in this project.
For financial development, Ethereum distributed the initial amount of ether through a forty-two-day initial public offering, receiving 31591 Bitcoins. This amount was quite large, which made it possible to obtain a large volume of ether through an intermediate exchange for dollars. Ethereum has attracted the attention of numerous banks. He was perceived as a testing platform for the development of smart contracts and bonds. The blockchain platform was launched on July 30, 2015.
Continuing to talk about the history of Ethereum, we note that on March 14, 2016, he stopped working in the previous alpha version, in which developers could not guarantee the safety of users. The new version of the protocol was called HomeSteade, also related to the previous, but already more stable version.
To date, the site is actively used and works in full force.
Features and principle of operation
If we talk about the features and the principle of the system, we immediately note the main characteristics:
- Platform flexibility, guaranteeing the ability to interact with different applications;
- Operational execution of operations, which requires only 20-30 seconds;
- High mining productivity.
If we talk about the cost of the Ethereum cryptocurrency, it is constantly changing and often upwards. To date, the price of one unit ranges from 284-306 dollars.
ETH is stored on wallets, the creation of which you will learn later. Moreover, the information is under reliable protection, as well as cash.
If we talk about the differences between the Ethereum cryptocurrency and Bitcoin, they are in the following points:
- A block in Ethereum is generated in 15 seconds. In the case of the Bitcoin cryptocurrency, the time is 10 minutes;
- Economic benefit. Income from generating a bitcoin block is reduced by 3 times every 4 years. The profit from ether mining remains unchanged;
- In order to organize Bitcoin mining, you need to have a fairly powerful computing technique, work in a pool. It is much easier to get a competing digital coin; you can do it yourself without resorting to the help of pools;
- Bitcoin was developed by private individuals, and the first miners easily received the lion’s share of coins. ETH cryptocurrency only in 5 years will be mined in half of the total;
- Ethereum has its own internal code that allows you to calculate the mathematical model of the system, having the necessary computing equipment and software.
No wonder the ETH cryptocurrency is rightfully called the main competitor of Bitcoin – it is much easier to mine, it opens up more opportunities, has good development prospects.
Studying the Ethereum course, it is possible to note that it varies widely enough if we take statistics, for example, over the past month. That is why many are interested in the question regarding forecasts for the future of digital coins.
Immediately, we note that according to some information, by the end of 2017, the value of cryptocurrency should reach $ 500 per coin, although today it is within $ 300. These figures already speak about the good prospects of Ethereum.
Despite the fact that at the moment there is a rollback, for 2018 they give quite good forecasts. Considering that at the beginning of 2017, the cost of digital coins was about $ 10 per unit, and by the end of the year it increased by 30 times, there is every reason to assume that in 2018-2020 the price growth will continue. Experienced experts say that by the end of this period, cryptocurrencies will offer about $ 1,000 per unit, or maybe the Ethereum exchange rate will become even higher. Minor kickbacks that provoke a temporary cost reduction of 20-30% are not excluded. Experts urge not to panic in such cases, because the rise in the value of digital coins will continue anyway.
If we talk about the prospects of Ethereum, they are very convincing. This digital currency is characterized by ease of production, a stable increase in the rate, is not controlled by any organizations, and has wide functionality. It opens up a wide range of opportunities for its owners.
How to create a wallet in the system
To open your own Ethereum wallet, where the digital currency will be stored, you must do the following:
- Go to the site https://www.myetherwallet.com/ and select Russian on the main page;
- After that, a form will open immediately, where you can register a wallet. Here you need to come up with a fairly long and complex password that you will need to enter in a free field;
- Click the ‘Create wallet’ button. It is better to save the password in a separate text file so as not to be forgotten;
- You need to download the Keystone file to your computer – with it you can log into your own wallet in the system. A warning will be highlighted in red that the site on which registration is being carried out does not store the entered data. Therefore, if you do not save the password, access to the wallet cannot be restored;
- After all the steps taken, you must press the button to continue the operation. Next, you will be shown a private key and an offer to save or print it. This key must be inserted into the above-mentioned text document, because with it you can also open the Ethereum wallet;
- Click the save address button and continue.
Registration does not require much time, the main thing is to save all passwords and access codes so that you can easily open your wallet later.
How to get cryptocurrency: where to buy and exchange
If there is a certain amount of money that you want to invest in ETH, it is not difficult to exchange money. This can be done using special exchange sites, for example, an extensive list of offers BestChange.
You select the type of currency available from the menu on the left side, indicate that you need a specific type of digital coins, start the search procedure. After a few seconds, a table opens with all the offers for the transaction. It remains to determine the most profitable and carry out the exchange. The funds received can be stored on your Ethereum wallet, waiting until the cryptocurrency rate grows, and you can resell it at a higher cost. Regarding the security of transactions, do not worry. BestChange has been working in this area for a long time, therefore it only works with trusted and reliable exchange sites.
You can try to find the exchanger yourself. But, it is worth remembering that in this case the risk of encountering scammers will be especially high.
How to earn digital coins
If we talk about how to earn Ethereum, there are two main ways:
- You will need a fairly powerful computer. We are talking about Ethereum mining. For its implementation, first of all, you need to take care that your computer meets the minimum technical specifications. Next, you need to download special software and put it into operation. We said above that Ethereum mining is an order of magnitude easier than mining Bitcoin or Litecoin cryptocurrency, earnings will not be long in coming. The procedure can be performed independently, but with the help of pools the amount of income will be an order of magnitude larger.
- Ethereum cranes are another way to earn digital coins. They suggest the need to perform fairly simple tasks for a certain fee. Depending on the type of tap, the tasks can be completely different: watching videos or advertising, passing simple free games and more. It’s important to understand that Ethereum faucets do not require too much money. To get the desired amount, you have to work hard and spend a lot of time.
In concluding, we note that the most justified solution will be the extraction of Ethereum. Despite the fact that you have to invest in equipment to get the necessary capacity, you can quickly recover all the costs. The main thing is to carefully study the materials on the topic, focusing on the requirements for the processor, video cards, motherboard. In this case, you can count on the successful extraction of Ethereum.
If you are interested in large amounts, an impressive income, you should ask about the issue of cooperation with pools. The latter combine several pieces of equipment, so the total capacity will reach very high marks. Thus, making Ethereum will be much easier.
It should be noted that the participants in the pool are working on a single result. The total number of coins mined for a certain period is divided among all who participated in this. The percentage of parts depends on the power of technology provided by man. You should not think that such an income of Ethereum is nothing but a hoax. Of course, there are scammers on the network, but most pool organizers are really interested in their long and transparent functioning, because their own income depends on it. In order not to make a mistake with the choice, give preference to proven pools. Useful information can be found in the reviews of people who personally organized the earnings of Ethereum in this way, who made a profit.