Ethereum is a blockchain platform for the deployment of dApps based on smart contracts, implemented as the Ethereum Virtual Machine, the operation of which is ensured by the cryptography rules.Get Wallet
What is Ethereum?
Ethereum is a blockchain platform for the deployment of dApps based on smart contracts, implemented as the distributed virtual machine EVM (Ethereum Virtual Machine), the operation of which is ensured by the cryptography rules. The project has its own digital coin ETH, which is used for the exchange of values within the network, as well as for the creation and activation of smart contracts. Smart-contracts are used to simplify business processes. The Ethereum network is a sequential chain of blocks where transactions are recorded without the possibility of change. Ethereum is now the worldwide second cryptocurrency by its popularity and market capitalization. In your ETH Wallet on Guarda you can buy Ethereum, exchange, and safely store it.
The first transactions with Ethereum took place on the Kraken exchange a week after the network was launched in August 2015. At that time, the price of 1 ETH was $2.8. The current maximum price of ~$1,400 was reached on 11/01/2018. The market price of ETH is always closely linked to the price of BTC.
Vitalik Buterin is the author of the Ethereum blockchain concept, which was proposed as Bitcoin 2.0 in late 2013. Buterin was also the editor and co-founder of Bitcoin Magazine. Having received the New York World Technology Award and the $100k grant from the Thiel Fellowship for his Ethereum idea, Buterin and his like-minded team began to develop a unique blockchain. The main network of the project was launched in 2015 and in the same year Buterin became the founder and CEO of the Fenbushi Capital Venture Fund, which received $50 million from the Wanxiang Group. According to Fortune magazine, Buterin is one of the most influential people in the world under 40,and also one of the top 5 most successful young people according to Forbes.
Where to buy Ethereum?
You can buy ETH directly in Guarda and can also store and manage ERC-20 standard tokens created on the basis of the Ethereum platform. You can also take advantage of Human-Readable Addresses - easy, short wallet addresses that create more trust between recipient and sender, due to no longer looking like a meaningless set of characters. This allows the human brain to associate a simple address with a specific person.
Ethereum mining and staking
Ethereum miners perform complex mathematical calculations in order to find the hash of a new block and receive rewards in the form of ETH coins. Users can earn 2 ETH per block. In the future, after switching to the PoS mining algorithm, users will receive rewards through Ethereum staking. It will be just enough to keep ETH coins in their wallets to get passive income and maintain the network.
Smart contracts are computer algorithms that ensure programmed actions are carried out within the system if certain conditions are met. For example, an investor participating in an ICO transfers funds to the smart contract address of the project, activates the token issuance program recorded in it, and receives tokens to their account.
Ethereum’s platform for creating dApps and smart contracts can be used in a very wide range of industries: in the fields of trade and services, supply chains, voting, finance, insurance, wills, computer games, real estate, etc. On the basis of Ethereum smart contracts, anyone can create other decentralized blockchain projects of various focus using the Solidity programming language. Its function has made Ethereum the most popular platform for issuing tokens (ERC-20 standard) and conducting Initial Coin Offerings (ICO). There are now almost 3,000 successful startups based on Ethereum smart contracts all over the world.
How does Ethereum work?
Ethereum has reached this level of popularity thanks to its smart contracts. A smart contract is a set of mathematical conditions that is used instead of papers with print, the execution of which is guaranteed by the blockchain. This makes them open and unchangeable. The Solidity language used to create smart contracts is very simple yet at the same time has Turing completeness. In other words, with the help of Solidity, it is possible to implement any logic that can be programmed. Anyone can write smart contracts for any algorithm, making the use of the Ethereum blockchain increasingly popular in the business world. Ethereum transactions are signed packages that contain data about the sending of coins and service messages between involved accounts. Each transaction has a unique identifier (address), and can be one of two types:
- External is used to store and send ETH coins and is controlled with private keys
- Smart-contracts are objects with a program code that launches certain operations if the conditions specified in it are met
Depending on the type of final recipient account, the purpose of the transaction may be either the regular transfer of ETH or the activation of a program recorded in a smart contract. There is a so-called fuel in the network for all types of operations, called 'gas'. The amount of rewards that miners receive for their work depends on the price and quantity of 'gas.' Each transaction contains a block number, date, hash, sender and recipient addresses, the transferred amount, price and gas limit, fees, digital signature, and an optional message. This system operates on a PoW Consensus (Proof-of-Work) algorithm.
Ethereum creators have made some hardforks with fundamental changes to the blockchain. The initial version of Ethereum was called Frontier and had problems with stability and network processes organization (via the command line), but the tools for mining and dApp creation were available. The most famous hardfork occurred in 2016 when hackers attacked the DAO platform that was operating on Ethereum smart contracts. They withdrew $50 million in ETH equivalent from the platform accounts and, one month later, the Ethereum network was rolled back to the "before hacking" stage. A large part of the crypto community refused to accept a new update and continued to work in the old chain, now known as Ethereum Classic.
Vitalik Buterin has promised to switch the blockchain to Ethereum 2.0 in 2020, allowing instant and no-fees transactions with the Proof-of-Stake algorithm and sharding technology. Several hardforks have already been designed to prepare the network for switching to PoS mining and to solve the scalability problem, as well as to improve the speed and safety of the blockchain. One of the latest Ethereum hardforks optimized the smart contract code and improved the performance of EVM. Another hardfork implemented the new ProgPoW (progressive Proof-of-Work) mining algorithm, which increases GPU mining efficiency and creates compatibility between the Ethereum and Zcash networks. These implemented features along with the switch to the PoS algorithm will make the network more secure and scalable.
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