What is Ethereum?

Etherium (etherium or ether) is one of the crypto-currencies, the main feature of which is the so-called “Smart contracts”. Let’s analyze what ethers are, who created them, what is the course and prospects of this crypto currency.

What is Ethereum, who is the designer and when it was created?

Vitalik Buterin is the project founder, a Canadian programmer with Russian heritage. Buterin’s popularity gained together with the popularity of the platform he created. Now, Vitalik also publishes a journal dealing with crypto-currencies, apart from the Ethereum development, actively develops and popularizes crypto-technologies and finances scientific research.

Boterin’s partner is Gavin Wood, a Canadian programmer who became the chief technology officer of Etherium.

Because of decentralization, Etherium crypto currency works without its own servers – it is supported by many users. The creators managed to gain transparency in the operation and the maximum hacker-proof defense.

The project got funds from crowdfunding. At the initial stage, the developers raised bitcoins that is approximately 18 million dollars at the rate. Now big companies are interested in Etherium smart contracts, including IBM, Microsoft, Sberbank and others. They signed a cooperation agreement with the platform and develop common projects.

The ether is unique because it allows any company to make ICOs. The process is reminiscent of crowdfunding, but in the case of the ICO investors’ rights are protected by smart contracts on the Ethereum.

The Ethereum is now used for creating gaming networks, applications, social networks, contracts and in the fields where rigid fixing of rights, requirements or agreements is required. Ethereum currency is a liquid capital, and the functional developed for it allows you to make transactions whenever and wherever you are. The project official website is https://www.ethereum.org. Ethereum rate is rated on cryptocurrency exchanges supply and demand level. See the current Ethereum course.

How is the Ethereum different form other altcoins?

The Ethereum is similar to other crypto-currencies that it’s not controlled by banking and government structures, and the transactions liquidity and legitimacy is provided by community members. For example, the Ethereum is mined on the same principle as bitcoins mining. The process profitability depends largely on the electricity costs.

Ethereum calculations presume the use of so-called “smart contracts”. Smart contracts are mathematical algorithms used for contract performance control. In particular, the asset is transferred from one person to another only after the payment has and the buyer has fulfilled all the smart contract conditions. Since transactions are automated, commitments are fulfilled as safe and quick as possible. Completed contract results are recorded in the blockchain.

Here is an example of how the exchange of coins is made.  Let’s say that two fans bet on a certain result of a sporting event.  Their rates are recorded in a smart contract.  When the competition is over, and the final score is known, the winnings will be distributed automatically – without human intervention.  This eliminates mistakes or manipulations of gaming companies or other personnel. 

All operations occur according to a pre-agreed scenario approved by the parties.  The script is written in a smart contract in the language of formal logic.  Each participant knows what to do in order to achieve the goal of the contract. 

How to buy, keep, sell and withdraw the Ethereum?

Ethereum buying and selling is available on almost every exchanges and exchangers.  There are advantages in each case.  So, you can buy coins at a lower price on the stock exchange, but this requires certain skills and authorization.  A simple example of a multi-cryptocurrency stock exchange is WEX. 

Concerning the exchange services, they are much easier to understand.  Especially exchangers are useful for those people who have not encountered with exchanges before and do not want to go through a long authorization procedure.  There are quite a few a lot of exchangers in the network, here are the most popular ones:

·       jojo.cash

·       Changer;

·       100btc;

·       Baksman;

·       Alfacashier and others. 

 

Exchange offices (as well as exchanges) charge interest for transactions (interchange rate).  To orientate oneself in the mass of offers, use the monitoring exchange points service.  In such a service, you can choose the necessary currency pair and sеlect an exchanger with such a currency.  A good example of the monitoring service of exchangers is bestchange.com. You can choose exchangers for making transactions with the necessary currency pair on this website.

Currency pair is selected on the left, and in the middle, there are exchangers for conducting transaction.  In the same way, you can choose exchangers for Ethereum withdrawal, for example on a card. Currency reserves information is also published on the monitoring websites (available exchange amount) and the Ethereum rate to the ruble, dollar or other currency. 

And of course, you can keep your currency not only in stock exchanges. The usage of the Ethereum-wallet is more simple way.  This can be a MIST (cold wallet) or MyEtherWallet (as Web extension, an online wallet or a cold wallet), you can also use a multicurrency Wallet with buying / selling/ paying functions or a Jaxx wallet.

It should be noted that the safest method to keep crypto currency is the use of a wallet for a personal computer.  The desktop program requires regular information synchronization to the current state. Since transactions are conducting constantly, winchester requires a lot of space for storing data.  Wallet key is recommended to be copied to the USB flash drive, and it should be kept in the encrypted form.

Quoted prices and perspectives

The Ethereum is constantly rising in price since its issue. At first the rate was $ 10 per coin, even if now it’s fluctuating in cost together with a market, the price is hundreds of dollars.

If we trace the price dynamics over the past year, it is obvious that the optimal entry points are the beginning of the year or July. During these periods, cost actively begins to increase. Early in January 2018, the price rose sharply to $ 1,380 per Ethereum, and then in a few days fell to $ 1017.50.

But there is a general tendency for cryptocurrency market – constant increase. So that a long-term investment is the most effective investment of finance in Ethereum.

Mainly, the exchange rate stability is supported by project developers who regularly create new services. There are smart-contracts for the transaction security.

How to check transactions?

You should use the service https://etherscan.io/. After visiting the website, you need to enter your wallet number in the search line and press “Enter”, after which a new window opens, where the history of the whole operations and balance will be displayed. Listed transactions are active and you can see the details by clicking on the necessary one.

Conclusions

So, Ethereum is not just a popular crypto currency, but also a highly-demanded service. Smart contracts demand offers wide opportunities for the platform, widely used by developers. Ethereum rate is constantly increasing because of the financial community attention. Long-term investments in the Ethereum remain good investments.

The project went beyond the boundaries of the cryptosphere existence that guarantees its stability. Even if there will be no more bitcoins, the Ethereum service will remain active, because the platform supplies market with the essential solutions. Many companies attract colossal sums for their projects thanks to the opportunity of carrying out the ICO on Etherium platform, avoiding the exhaustible and costly standard procedures accepted by the offline community.

All this point to the Ethereum perspectivity and safety both as a currency, and as a project in general.

 

 

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26.04.2019, 13:39