Jul 12, 2017, 02.07 PM IST
7 things you need to know about ether
Ether, the second-most-popular crypto-currency after bitcoin, is used to pay for applications or programs that run on the Ethereum blockchain, a secured list of transactions that can be shared. The currency surged 30,258 per cent in just two years, to $394.66 on June 12, 2017 from $1.3 on August 12, 2015. At present, the crypto currency is trading at nearly $200.
Here is all you must know about the digital currency:
ThinkStock Photos
What is Ethereum?
- Ethereum, launched in 2015, is a decentralized software platform that enables SmartContracts and Distributed Applications to be built and run without a third-party interference.
- It is a programming language which runs on a blockchain, helping developers to build and publish distributed applications.
ThinkStock Photos
Benefits of Ethereum decentralized Platform
- Immutability: No third party can make any changes to the data.
- Corruption & tamper proof: Ethereum applications are made on consensus based network which makes censorship impossible.
- Secure: The applications are well protected and secured using cryptography, which prevents hacking attacks as well as fraudulent activities.
- Zero downtime: Apps never go down nor can be switched off.
ThinkStock Photos
I
Downside of decentralized applications
- Smart contracts are only as good as the people who write them which make them open to errors.
- Code bugs or oversights can lead to unintended adverse actions being taken.
- A cyber attack cannot be stopped unless there is re-writing of the underlying code.
ThinkStock Photos
Ethereum Currency: Ether
The applications on Ethereum are run on its platform-specific cryptographic token, ether.
Ether is like a vehicle for moving around on the Ethereum platform, and is sought by mostly developers looking to develop and run applications inside Ethereum.
Ether is used broadly for two purposes; it is traded as a digital currency exchange like other cryptocurrencies and is used inside Ethereum to run applications and even to monetize work.
The current market cap of ether (ETH) is now more than Ripple and Litecoin although it's far behind bitcoin (BTC).
ThinkStock Photos
Difference between Ether and Bitcoin
- Bitcoin and Ethereum differ substantially in purpose and capability.
- Bitcoin offers one particular application of blockchain technology, a peer to peer electronic cash system that enables online Bitcoin payments.
- While the bitcoin blockchain is used to track ownership of digital currency (bitcoins), the Ethereum blockchain focuses on running the programming code of any decentralized application.
- In the Ethereum blockchain, instead of mining for bitcoin, miners work to earn Ether, a type of crypto token that fuels the network.
- Beyond a tradeable cryptocurrency, Ether is also used by application developers to pay for transaction fees and services on the Ethereum network.
ThinkStock Photos
How it works
The structure of the ethereum blockchain is very similar to bitcoin's.
However, unlike bitcoin. Ethereum, uses accounts.
Like bank account funds, ether tokens appear in a wallet, and can be ported (so to speak) to another account.
Funds are always somewhere, yet don't have what you might call a continued relationship.
ThinkStock Photos
No comments:
Post a Comment