Thursday 12 October 2017
Wednesday 11 October 2017
Ethereum differs from Bitcoin
Ethereum differs from Bitcoin in 7 main ways:
In Ethereum the block time is set to 14 to 15 seconds compared to Bitcoins 10 minutes. This allows for faster transaction times. Ethereum does this by using the Ghost protocol.
1.Ethereum has a slightly different economic model than Bitcoin – Bitcoin block rewards halve every 4 years whilst Ethereum releases the same amount of Ether each year ad infinitum.
2.Ethereum has a different method for costing depending on their computational complexity, bandwidth use and storage needs. Bitcoin transactions compete equally with each other.This is called Gas in Ethereum and is limited per block whilst in Bitcoin, it is limited by the block size.
3.Ethereum has its own Turing complete internal code... a Turing-complete code means that given enough computing power and enough time... anything can be calculated. With Bitcoin, there is not this form of flexibility.
4.Ethereum was crowd funded whilst Bitcoin was released and early miners own most of the coins that will ever be mined. With Ethereum 50% of the coins will be owned by miners in year five.
5.Ethereum discourages centralised pool mining through its Ghost protocol rewarding stale blocks. There is no advantage to being in a pool in terms of block propagation.
6.Ethereum uses a memory hard hashing algorithm called Ethash that mitigates against the use of ASICS and encourages decentralised mining by individuals using their GPU’s.
In Ethereum the block time is set to 14 to 15 seconds compared to Bitcoins 10 minutes. This allows for faster transaction times. Ethereum does this by using the Ghost protocol.
1.Ethereum has a slightly different economic model than Bitcoin – Bitcoin block rewards halve every 4 years whilst Ethereum releases the same amount of Ether each year ad infinitum.
2.Ethereum has a different method for costing depending on their computational complexity, bandwidth use and storage needs. Bitcoin transactions compete equally with each other.This is called Gas in Ethereum and is limited per block whilst in Bitcoin, it is limited by the block size.
3.Ethereum has its own Turing complete internal code... a Turing-complete code means that given enough computing power and enough time... anything can be calculated. With Bitcoin, there is not this form of flexibility.
4.Ethereum was crowd funded whilst Bitcoin was released and early miners own most of the coins that will ever be mined. With Ethereum 50% of the coins will be owned by miners in year five.
5.Ethereum discourages centralised pool mining through its Ghost protocol rewarding stale blocks. There is no advantage to being in a pool in terms of block propagation.
6.Ethereum uses a memory hard hashing algorithm called Ethash that mitigates against the use of ASICS and encourages decentralised mining by individuals using their GPU’s.
How to buy Bitcoin and Ethereum
If you've seen the incredible upward momentum of Bitcoin, Ethereum, and other cryptocurrencies, you've maybe also considered getting in on the action. Now, you're gonna learn how.
But first, a disclaimer: Bitcoin, Ethereum, and so many of the other cryptocurrencies out there can be a way to pay for stuff online, sure. And they can also be (if they aren't already more popular as) investments. And investments, you might know, can go up and down. You can gain money on them, or lose it. And those values can fluctuate wildly, as you might've also seen lately.
To put it simply: proceed with extreme caution. We're not here to tell you whether or not youshould buy it, just to show you how you can pull it off.
That said, the rise of cryptocurrencies are an exciting moment for technology, and even if you don't want to actually buy any, it's worth knowing how it all works.
Let's begin where any investment starts—in your own wallet.
Just like depositing money in the bank or buying a stock, you keep your cryptocoins in a digital account known as wallet, which lets you store, receive, and send them.
But it's a bit more complicated than that, and there's some serious notes of precaution to be aware of with a wallet.
Cryptocurrency won't just magically appear in your wallet out of thin air. You've gotta buy it, first. There are several ways to do that, but the easiest is to exchange a fiat currency—dollars, euros, pounds, etc—for some cryptocurrency. And the easiest place to do that is at an exchange. Think of a cryptocurrency exchange as a stock market for crypto. You register for it, deposit your fiat currency of choice, and then, you can buy yourself some crypto. But the cryptocurrency market is still pretty new—and it's not bound by the same laws and regulations as the stock market. So before you do anything else, remember this:
Cryptocurrency won't just magically appear in your wallet out of thin air. You've gotta buy it, first. There are several ways to do that, but the easiest is to exchange a fiat currency—dollars, euros, pounds, etc—for some cryptocurrency. And the easiest place to do that is at an exchange. Think of a cryptocurrency exchange as a stock market for crypto. You register for it, deposit your fiat currency of choice, and then, you can buy yourself some crypto. But the cryptocurrency market is still pretty new—and it's not bound by the same laws and regulations as the stock market. So before you do anything else, remember this:
Ethereum and Decentralized Autonomous Organizations
Smart contracts could be the building blocks for entire decentralized autonomous organizations (DAO's) that function like corporations, engaging in economic transactions—buying and selling things, hiring labor, negotiating deals, balancing budgets and maximizing profits—without any human or institutional intervention. If one takes the view that corporations are just a complex web of contracts and obligations of varying size and scope, then such DAO's could be coded into Ethereum. This opens the door for all sorts of new and interesting possibilities such as emancipated machines that literally own themselves and people being employed directly by pieces of software.
Ethereum and Decentralized Applications
While DAO's may be a concept to be realized in the future, decentralized applications (DAPPS) are currently being developed for Ethereum today. These standalone applications utilize smart contracts and run on the EVM.
Some examples include micro-payments platforms, reputation functions, online gambling apps, schedulers and P2P marketplaces. The key feature to DAPPs is that they run across a decentralized network and are enforced without the need for a central authority or overseer. Any sort of multi-party application that today relies on a central server can be disintermediated via the Ethereum blockchain. This can eventually include chat, gaming, shopping and banking. The Bottom Line What bitcoin did for money and payments by harnessing blockchain technology, Ethereum may do for applications of all shapes and sizes. With a built-in scripting language and distributed virtual machine, smart contracts can be built to carry out all sorts of functions without the need for a trusted third party or central authority. Using its internal cryptocurrency, ether, nodes can be paid for their processing power in running these decentralized apps, and eventually entire decentralized autonomous organizations may exist in an ether economy. The potential is exciting, and the price of ether has recently risen to over $10/ETH, giving Ethereum an implied value of nearly $800 million in just a few years since it was first conceptualized.
Some examples include micro-payments platforms, reputation functions, online gambling apps, schedulers and P2P marketplaces. The key feature to DAPPs is that they run across a decentralized network and are enforced without the need for a central authority or overseer. Any sort of multi-party application that today relies on a central server can be disintermediated via the Ethereum blockchain. This can eventually include chat, gaming, shopping and banking. The Bottom Line What bitcoin did for money and payments by harnessing blockchain technology, Ethereum may do for applications of all shapes and sizes. With a built-in scripting language and distributed virtual machine, smart contracts can be built to carry out all sorts of functions without the need for a trusted third party or central authority. Using its internal cryptocurrency, ether, nodes can be paid for their processing power in running these decentralized apps, and eventually entire decentralized autonomous organizations may exist in an ether economy. The potential is exciting, and the price of ether has recently risen to over $10/ETH, giving Ethereum an implied value of nearly $800 million in just a few years since it was first conceptualized.
Is Ethereum More Important Than Bitcoin
Blockchain technology, the distributed ledger system that underpins the digital currency Bitcoin, is getting a lot of attention from Wall Street lately. With uses ranging from cross-border payments to settlements and clearing of over-the-counter derivatives to streamlining back office processes, the potential for disruption in the financial industry and elsewhere is growing more real each day. While bitcoin is the most widely used and well known use case of blockchain, Ethereum may be the killer app that allows for this disruption to finally take place.
The token native to the Ether (ETH), has recently risen to over $10 per ETH, and the market capitalization of all ether is nearly $800 million, making it the second most valuable blockchain behind bitcoin (which represents approximately $6.5 billion of value).
What is Ethereum and why is it interesting? Ethereum was developed to augment and improve on bitcoin, expanding its capabilities. Importantly, it was developed to feature prominently “smart contracts:” decentralized, self-executing agreements coded into the blockchain itself. Ethereum was first proposed version in 2015. Its blockchain is built with a turing-complete scripting language that can simultaneously run such smart contracts across all nodes and achieve verifiable consensus without the need for a trusted third party such as a court, judge or legal system. According to its website Ethereum can be used to “codify, decentralize, secure and trade just about anything.” In late 2014, Ethereum raised over $18 million in bitcoin by way of a crowd sale to fund its development.Is Ethereum More Important Than Bitcoin?
What is Ethereum and why is it interesting? Ethereum was developed to augment and improve on bitcoin, expanding its capabilities. Importantly, it was developed to feature prominently “smart contracts:” decentralized, self-executing agreements coded into the blockchain itself. Ethereum was first proposed version in 2015. Its blockchain is built with a turing-complete scripting language that can simultaneously run such smart contracts across all nodes and achieve verifiable consensus without the need for a trusted third party such as a court, judge or legal system. According to its website Ethereum can be used to “codify, decentralize, secure and trade just about anything.” In late 2014, Ethereum raised over $18 million in bitcoin by way of a crowd sale to fund its development.Is Ethereum More Important Than Bitcoin?
Friday 6 October 2017
Converting BTC to ETH
On this page you can convert BTC to ETH at the best exchange rate. Most Magnetic Exchange transactions are processed instantly. In case the manager’s action or temporary funds hold is needed, you will be notified in advance.
To convert Bitcoin to Ethereum you will need to fill in the form (all fields are mandatory) and after press the «Proceed» button. After this you will need to read and accept the rules of the exchange service and carefully check all details of your order.
If you accept the conditions, and the details of the converting Bitcoin to Ethereum order are correct, you can proceed to the next step of the exchange process and pay the order. For this, you will need to follow the instructions of the Bitcoin payment system and make a BTC transfer in the amount specified in the order.
Right after the payment is complete, you will be forwarded to the order status page. If the transaction does not need any action of the manager, it will be fulfilled instantly. Otherwise, it will take up to 20 minutes (unless otherwise stated) to fulfill the order.
How does mining affect price
As stated above, one of the biggest factors on bitcoin’s price is the steady introduction of new bitcoins through payments to the computer operators that process transactions (miners).
Mining affects price by increasing the supply, and through the decision of miners to hold or sell bitcoin. Ethereum’s current version, Homestead, leverages a proof-of-work based consensus algorithm, rewarding computers that contribute to its security in the same way.
Under this system, miners create a new block every 15-17 seconds, resulting in the creation of 5 ETH, according to figures provided by Ethereum.org. Miners that contribute to discovering a solution, but don’t get their block included, can receive two or three new ethers, which is called an uncle/aunt reward.
Once Ethereum starts using Casper, a proof-of-stake protocol, this rate is expected to change, as many anticipate Casper will provide a smaller mining subsidy. Under the new protocol, nodes will not be able to validate transactions and therefore produce blocks unless they provide a security deposit.
Should the protocol determine that a node, or "bonded validator," has produced anything invalid, the node will lose both any deposit provided and also the ability to participate in the consensus process. Currently, bonded validators face no penalty if they produce blocks considered invalid by the protocol.
By changing incentives, it is expected that Casper will be more efficient, but the change could also mean that ether’s value is adjusted to the new realities of the network’s operation.
How ether's market works
Unlike bitcoin, ether is not designed to function as a global digital currency. Instead, it is meant to pay for specific actions on the Ethereum network, with users receiving it for using their computing power to validate transactions and for contributing to its development
However, ether’s market is currently supported by many of the same exchanges and infrastructure that has built up around the bitcoin network. For example, users who have historically bought bitcoin and other digital currencies on venture-backed exchange platforms such as Bitfinex and Kraken can today buy ether on these websites.
But, ether’s market did not develop in the same manner as bitcoin’s market.
In bitcoin, users were once able to process transactions on the network using a home computer, and then eventually, home mining equipment. Bitcoin grew in value as the number of participants in the network expanded. Ethereum arguably developed under different circumstances.
In a bid to galvanize a global development community around its idea, Ethereum launched a pre-sale of ethertokens in 2014, raising more than $14m in what has been called a crowdfunding effort, but bears resemblance to a kind of informal initial public offering (IPO).
Donations collected for this sale were the driving factor behind the initial supply and the rate of issuance that existed after. As a result of this event, contributors of the presale received 60m ether. Another 12m went to the development fund, with the majority of this amount going to early developers and contributors. The Swizterland-based non-profit Ethereum Foundation received the remainder of this amount.
These numbers added up to an initial ether supply of 72m ETH. Following this event, Ethereum’s protocol permitted the creation of 5 ETH for every block mined. In addition, a maximum of 18m ETH were allowed to come into existence every year following this event.
In the bitcoin network, the supply rate is more consistent. Due to hard-coded rules in the software there will only ever be 21 million bitcoins (unless the rules are changed), and the rate at which new tokens are introduced is 25 BTC roughly every 10 minutes today.
Investors should note that such consistency is not guaranteed in the ether market.
The Ethereum Foundation announced at the time of launch that ether’s rules would soon change, and that starting some time in 2017, the network would follow the rules of Casper, a consensus algorithm still being developed.
Bitcoin Exchange trades
The other way to sell bitcoins is to register with an online exchange. You will still have to verify your identity, but in this case you won’t have to do as much work when it comes to organizing the sale.
Exchanges act as an intermediary who holds everyone's funds. You place a ‘sell order’ (just as you would place a buy order), stating the volume (amount) and type of currency you wish to sell (eg bitcoin), and the price per unit you wish to sell for.
As soon as someone places a matching buy order, the exchange will complete the transaction. The currency will then be credited to your account.
The downside that accompanies this ease of use is that, if you are selling bitcoin for fiat currencies, you will need to withdraw those funds to your bank. If the exchange is facing liquidity problems or issues with its banks, it can take an inordinate amount of time to receive your funds.
Mt. Gox became infamous for this problem before it went bankrupt, and BTC-e has recently been plagued with reports of similar difficulties. Therefore, you should carefully research the exchange you intend to use before committing funds.
what is Etherum
Ether is a necessary element -- a fuel -- for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations. To put it another way, ether is the incentive ensuring that developers write quality applications (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources).
A platform for decentralized applications, Ethereum was invented by Vitalik Buterin and announced in early 2014. At the time, Buterin indicated in public appearances he was keen to create an alternative blockchain-based system that would offer a superior arsenal of tools to global developers.
Launching in beta in July 2015 and in a production version this March, Ethereum’s big innovation is that it runs Turing-complete smart contracts, applications that rely on if-then scenarios to execute specific terms of an agreement.
Basically, smart contracts ensure that once a predetermined condition is met, the corresponding clause contained in the contract is fulfilled, and the Turing-complete factor has been heralded as allowing developers a new expressiveness in writing such code.
Today, smart contracts can run on the public Ethereum blockchain, a distributed ledger technology that is used to keep track of all related transactions and agreements.
The smart contracts that run on its blockchain could have widespread applications, as developers could use them to create markets, execute transactions based on agreements created long ago and keep track of pledges made by different counterparties.
Many users have already begun taking advantage of these myriad options, developing a wide range of apps that can be used to set up ridesharing applications, sports bets and even investment schemes, The New York Times has reported.
But as open-source technology, corporations are free to create their own private blockchains based on Ethereum that do not use the public Ethereum blockchain, and as such, don’t use Ethereum’s token, ether.
Thursday 5 October 2017
Buy Ethereum with Cash
Buy Ethereum with Cash
At the moment there is no site like LocalBitcoins for Ethereum where you can meet people face to face and buy Ethereum with Cash. However, you can buy Bitcoins with cash and then exchange it to Ethereum through Shapeshift or Poloniex.Mining Ethereum uses proof-of-work It’s similar to Bitcoin mining in a sense that there is a diminishing block reward for every block mined. You can try mining Ethereum using your own computer (CPU mining), but it will probably not get you too far.
However, if you have a dedicated GPU set up for the task then you can get some real rewards. For information on exactly how to mine Ether visit Ethereum’s official web page or on our blog post about it. Ether and Ethereum in General are disruptive technologies that are set to change how the Internet works. Whether it succeeds or not remains to be seen, but for now you can easily get your share of “the Internet’s future” by following the steps mentioned above.
Wednesday 27 September 2017
Tuesday 26 September 2017
Etherum Virtual Currency
Coinbase, a bitcoin-only exchange, is planning to add support for ethereum, the company said (May 19). Coinbase exchange users will be able to buy and sell ether, the virtual currency unit behind ethereum starting Tuesday, May 24. Ether is currently trading at about $14 USD (bitcoin is trading at around $448 USD). Sources say Coinbase had been considering adding ethereum for some time. Earlier today, a screenshot of a support page for ether was published by a cryptocurrency trader on Twitter, then appeared on social media site Reddit.
Ethereum is a digital currency similar to bitcoin. Such currencies, based on software, allow people to transact anonymously and freely without a middleman involved.
Created by 22-year-old software developer Vitalik Buterin, ethereum has a particular property that’s excited companies: smart contracts. Smart contracts are essentially agreements between two parties that can execute automatically, without human involvement. Unlike bitcoin, ethereum natively supports smart contracts. Proponents say smart contracts can cut costs and reduce human error. They have gained support from JPMorgan Chase, Barclays, and even the state of Delaware. IBM has explored using Ethereum to help Internet of Things devices interact with each other. Microsoft added support for ethereum to Azure, its cloud computing platform for developers. Marley Gray, director of business development for blockchain at Microsoft, said that the tech giant has added over 40 different partners for Azure platform, 40% of which are based on Ethereum.
Earlier this month, the New York Department of Financial Services approved Gemini, a virtual currency exchange founded by the Winklevoss brothers, to start trading ether. Coinbase hasn’t yet gotten regulatory approval in general in New York, so Coinbase users in New York won’t be able to trade ethereum. The company expects to make ethereum and new products available to New York users once its bitlicense is approved. New York State residents can use the Coinbase exchange and the virtual currency wallet. Coinbase’s support is a vote of confidence for ethereum. The startup has raised $106 million in four funding rounds from investors such as Andressen Horowitz, BBVA Ventures, and the New York Stock Exchange. Adding ethereum will not only help the virtual currency, but could generate more trading on Coinbase’s exchange.
Created By:
Created by 22-year-old software developer Vitalik Buterin, ethereum has a particular property that’s excited companies: smart contracts. Smart contracts are essentially agreements between two parties that can execute automatically, without human involvement. Unlike bitcoin, ethereum natively supports smart contracts. Proponents say smart contracts can cut costs and reduce human error. They have gained support from JPMorgan Chase, Barclays, and even the state of Delaware. IBM has explored using Ethereum to help Internet of Things devices interact with each other. Microsoft added support for ethereum to Azure, its cloud computing platform for developers. Marley Gray, director of business development for blockchain at Microsoft, said that the tech giant has added over 40 different partners for Azure platform, 40% of which are based on Ethereum.
Earlier this month, the New York Department of Financial Services approved Gemini, a virtual currency exchange founded by the Winklevoss brothers, to start trading ether. Coinbase hasn’t yet gotten regulatory approval in general in New York, so Coinbase users in New York won’t be able to trade ethereum. The company expects to make ethereum and new products available to New York users once its bitlicense is approved. New York State residents can use the Coinbase exchange and the virtual currency wallet. Coinbase’s support is a vote of confidence for ethereum. The startup has raised $106 million in four funding rounds from investors such as Andressen Horowitz, BBVA Ventures, and the New York Stock Exchange. Adding ethereum will not only help the virtual currency, but could generate more trading on Coinbase’s exchange.
How to Exchange Bitcoin to Ethereum
Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality.It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a cryptocurrency token called "ether", which can be transferred between accounts and used to compensate participant nodes for computations performed."Gas", an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.
If you want to convert to ethereum, you should first create an Ethereum wallet. Then you can use Crypto currency wallet software Conversion to change Bitcoin to Ethereum. The exchange does not need an account, neither an exchange wallet. Only addresses are given, and the transaction is complete.
Like Bitcoin, Ethereum is a distributed public blockchain network. Although there are some significant technical differences between the two, the most important distinction to note is that 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.
Smart contract is just a phrase used to describe computer code that can facilitate the exchange of money, content, property, shares, or anything of value. When running on the blockchain a smart contract becomes like a self-operating computer program that automatically executes when specific conditions are met. Because smart contracts run on the blockchain, they run exactly as programmed without any possibility of censorship, downtime, fraud or third party interference.
How to Change Bitcoin to Ethereum
What is ether used for ethereum?
Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes.Is Ethereum similar to Bitcoin?
Like Bitcoin, Ethereum is a distributed public blockchain network. Although there are some significant technical differences between the two, the most important distinction to note is that 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.
What is a smart contract?
Smart contract is just a phrase used to describe computer code that can facilitate the exchange of money, content, property, shares, or anything of value. When running on the blockchain a smart contract becomes like a self-operating computer program that automatically executes when specific conditions are met. Because smart contracts run on the blockchain, they run exactly as programmed without any possibility of censorship, downtime, fraud or third party interference.
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