Beginner’s Guide: Using Ether Coin
Ether (ETH) is the cryptocurrency used on the Ethereum blockchain. Ethereum was designed primarily to run code on a decentralized computing platform; The cryptocurrency can transfer value, just like Bitcoin and it can also utilize the distributed processing capability of the open platform to execute Smart Contracts.
Since Ethereum works in a distributed manner, the decentralized applications (dApps) running on it do not risk being compromised by a user. They are added to the Ethereum blockchain and can be built so that the code is permanent and unchanged. Transparency is a significant benefit: the blockchain is publicly visible and easy to explore so that any market user can verify the code before interacting with it.
The Ethereum blockchain provides a way of resisting the censorship that plagues traditional web applications while giving developers the means to generate real-life value.
Ethereum works with its programming language called Solidity.
Ethereum was co-created by a team of eight crypto enthusiasts and developers from all over the globe. They include Vitalik Buterin, Gavin wood, Mihai Alise, Amir Chetrit, Anthony Di Iorio, Charles Hoskinson, Joseph Lubin and Jeffrey Wilcke. They met for the first time and joined forces on June 7, 2014, in Zug, Switzerland.
However, Russian-Canadian Vitalik Buterin is the most famous programmer, who became rightly renowned. He is the current CEO and is often referred to as the youngest billionaire. Vitalik was the author of the original Ethereum White Paper in 2013 while continuing to contribute to the development of Ethereum and working to improve the platform as the public face of Ethereum.
Check out his Twitter here.
How Does Ethereum Work?
Ethereum virtually works like a vast, decentralized machine. At any time, you can take a snapshot of each address (account) in the Ethereum blockchain and specify its current status. The actions throughout the blockchain cause the states to change and each node updates its snapshot to reflect these changes.
Every Ethereum transition state is the result of millions of transactions. These transactions are grouped into “blocks.” Imagine a block as a significant trading package and each block is linked together with the previous block, creating a blockchain.
It’s managed by all of the distributed ledger holders, unlike a traditional centralized system. However, Ethereum is a unique platform that allows its users to develop applications that “run” on the blockchain just like software “runs” on a computer. These applications can store and transfer personal data and handle complex financial transactions.
When asked about its uniqueness compared to Bitcoin, Ken Fromm, the director of education and development at the Enterprise Ethereum Alliance, Said, “The Ethereum network can perform computations as a component of the mining process,” “This fundamental computational capability turns a store of value and medium of exchange into a decentralized global computing engine and openly verifiable data store.”
Ether (ETH) was initially built to work within the Ethereum blockchain, but ETH is now accepted by some service vendors and merchants as a mode of payment.
ConsenSys, Visa Inc, MasterCard, Toyota research institute and Shopify are among the companies that accept Ethereum as payment.
Ethereum Foundation has an official account on Twitter where tweets on the project drop. Follow Ethereum on Twitter
What makes Ethereum unique
Ethereum designed a powerful open-source blockchain platform by modelling some concepts of Bitcoin. The Ethereum network basically operates like a new, decentralized internet that works independently.
Ethereum implements intelligent contracts using blockchain, improving the existing benefits of smart contract technology. Gavin Wood, one of the Ethereum founders, said the Ethereum blockchain was developed to be “a computer for the entire planet.”
In theory, Ethers can make any application more robust, more resistant to censorship, and more secure. This is accomplished by running it on a globally distributed system of public nodes.
What Gives Ethereum Value?
In contrast to Bitcoin which derives its value from limited supply, Ethereum derives its value from its usefulness. Its capability to act as a platform for many decentralized projects and applications also raises its value exponentially.
How Many Ether Coins Are In Circulation?
When Ethereum started, over 50 million Ether were distributed in a public sale of tokens — called the Initial Coin Offering (ICO) — where participants could buy ETH in exchange for fiat (such as USD) or BTC.
As of November 2021, about 118,000,000 Ether (ETH) are in circulation: approximately 40,000,000 ETH coins have been mined, while 72,000,000 ETH has been distributed through a public offering.
The mined Ethers are distributed to the miners who make the Ethereum platform a reality, while the benefits deflate as time goes on.
As of 2015, the reward was 5 ETH per block, and it was reduced to 3 ETH at the end of 2017 and then to 2 ETH at the beginning of 2019. It takes about 13–15 seconds to extract an Ethereum block, and profitability is linked to the price of the cryptocurrency.
Various functions. Ethereum network is a tested project that has proven successful in a few years of operation. It serves as a digital currency, it is used to store data for third-party apps and Ethereum is also used to implement smart contracts and process financial transactions of various types.
Constant innovation. Ether has a large community of developers who are constantly looking for modern ways to refine the network and build new applications.
“Because of Ethereum’s popularity, it tends to be the preferred blockchain network for new and exciting (and sometimes risky) decentralized applications.” Says Avital.
Avoids intermediaries. As a decentralized network, Ethereum promises to let users leave third-party intermediaries behind, such as banks that are intermediaries in financial transactions or third-party web hosting services.
Unknown features. Ethereum continues to evolve and improve, to foster better efficiency and development. One of the ongoing developments in Ethereum 2.0 promises better functionality and efficiency. However, this improvement still creates uncertainty since users don’t know how it will operate yet. Since many new validators will be required for this feature to work, a hypothetical question like “will this migration work?” has run across the minds of users.
Creates a steep learning curve for developers. Since it migrates from centralized processing to a decentralized network, it is usually tricky for developers to pick up.