Millennials love cryptocurrencies—for several reasons. One of them is the technology behind them that promises to modernize capitalism and free it from the strong control of big governments and big banks. The other reason is the potential cryptocurrencies have to make investors wealthy quickly and Ethereum is one of them.
Ether is one of the most trending cryptocurrencies in present time. Its fluctuating value has presented it as a tradable asset instead of using it as a decentralized currency. It would be wrong to label Ethereum as a cryptocurrency or confuse it with Ether, a cryptocurrency part of Ethereum system.
In order to fully understand Ethereum, how it works and how it can potentially impact our society. This guide is perfect for you to learn Ethereum price predictions, mining, and other metrics. Let’s get started with what is Ethereum.
What is Ethereum?
An outright majority of online services, businesses and enterprises are built on a centralized system of governance. This centralized approach means single-entity control which also causes a single point of failure.
Moreover, most social networks and other online servers want users to provide at least some degree of personal information, which is then stored on their servers. This requirement introduced decentralized open software platform-Ethereum.
At its simplest, Ethereum is a decentralized open software platform based on blockchain technology. Which means it is not controlled by any single ruling entity and allows developers to build and deploy decentralized applications.
Ethereum Smart contracts
The decentralized blockchain applications are called Smart contracts which are highly secure and run with a perfect digital history making them auditable. The Ethereum blockchain and smart contracts form a shared global supercomputer that can make transactions across the world.
However, Ethereum can be used to build financial applications that are fully trustworthy and transparent because they run on a cryptographically secure system. It allows you to store and manage your digital property/digital assets using Smart contracts.
Moreover, this enables developers to create many things all without a third party like what the internet did for information, Ethereum has the power to open up the secure financial system to the world and build a more accessible and fair economy for everyone to participate in.
Who created Ethereum
In 2013, Vitalik Buterin explained his idea in a white paper, which he sent out to some of his friends, who in turn sent it out further. As a result, about 30 people reached out to Vitalik to discuss the idea. He was waiting for critical reviews and people pointing out some critical mistakes in the concept, but it never happened.
Eventually, in January 2014, the project was publicly announced with the core team consisting of Vitalik Buterin, Mihai Alisie, Anthony Di Iorio, Charles Hoskinson, Joe Lubin, and Gavin Wood. Vitalik also presented Ethereum on stage at a Bitcoin conference in Miami, and just a few months later the team decided to hold a crowdsale of Ether to fund the development.
“I thought [those in the Bitcoin community] weren’t approaching the problem in the right way. I thought they were going after individual applications; they were trying to kind of explicitly support each [use case] in a sort of Swiss Army knife protocol.”
— Vitalik Buterin, inventor of Ethereum.
Is Ethereum alike to Bitcoin? Well, sort of, but not really
Like Bitcoin, Ethereum is a distributed public ledger. Although there are some notable technical differences between the two, the most important difference to remark is that Bitcoin and Ethereum differ substantially in purpose and capability.
Bitcoin allows one particular application of blockchain technology, a peer to peer electronic cash system that permits online Bitcoin payments. The Bitcoin blockchain is used to follow ownership of digital currency (bitcoins), While the Ethereum blockchain focuses on running the programming code of any decentralized application.
With 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 as transaction fees and services on the Ethereum network.
The Ethereum Virtual Machine
Whilst Ethereum is a platform that is specially designed for people to build these kinds of decentralized applications with its own EVM. Ethereum Virtual Machine is a Turing complete software that enables anyone to run any program, regardless of the programming language given enough time and memory.
The EVM is Ethereum’s core innovation, which allows for the peer-to-peer network to sending messages and a generalized blockchain with a built-in programming language. It makes the process of creating blockchain applications much easier and efficient than ever before. Ethereum Virtual Machine enables the development of potentially thousands of different applications all on one platform.
How Ethereum works
As it was mentioned before, Ethereum is based on decentralized Blockchain design but is tweaked so that applications beyond money systems can be supported. The two Blockchains’ only similarity is that they store whole transaction records of their own networks.
However, Blockchain of Ethereum does a lot more than that. Besides the records of transactions, every node on the Ethereum network also needs to download the most current state, or the recent information, of each smart contract within the network, where it’s stored.
Basically, the Ethereum Blockchain can be described as a transaction-based state machine. It is defined as something capable of reading a series of inputs and transitioning to a new state based on those inputs. When transactions are performed, the machine transitions into a different state.
Each state (block) of Ethereum consists of millions of transactions. These transactions are grouped to form ‘blocks,’ with each and every block being chained together with its previous blocks. But before the transaction can be added to the ledger, it needs to be confirmation, that goes through a process called mining.
How to get Ethereum?
- Ethereum Mining
- Buy Ethereum
What is Ethereum Mining?
Ethereum Mining is a process when a group of nodes applies their computing power to completing a ‘proof of work’ challenge, which is essentially an encrypted mathematical query. The more powerful their computer is, the quicker it can solve the query. A solution to this query is in itself a proof of work and confirmation of a block.
A lot of Ethereum miners around the world are competing with each other in an attempt to create and validate a block, as every time a miner proves a block new Ether tokens as a reward are generated to the miner. Miners are a backbone of the Ethereum network. They not only confirm and validate transactions and any other operations within the network but also mine new tokens of the network’s currency.
Read more — Ethereum Mining: How to Mine?
Many cryptocurrency exchanges are available to buy, sell, and trade Ethereum. Here we’re listing some crypto exchanges, where you can acquire Ethereum tokens.
|Coinbase||Backed by trusted investors and used by millions of customers globally.||Security, reasonable Fees, beginner friendly, stored currency is covered by Coinbase insurance.||32 countries served|
|Gemini||A fully regulated licensed US Bitcoin and Ether exchange.||Security and compliance, user-friendly design, great analytics, high liquidity.||42 US states, Canada, Hong Kong, Japan, Singapore, South Korea, and the UK.|
|Cex.io||Provides a wide range of services for using Bitcoin, Ether and other cryptocurrencies; Lets users easily trade cryptocurrencies for flat money and vice-versa.||Good reputation, good mobile product, credit card support, beginner friendly, good exchange rates, supported worldwide.||Worldwide|
|Bittrex||A USA-based and fully compliant exchange with extensive digital currency support.||Security and compliance, user-friendly design, support of 190+ cryptocurrencies, great analytics.||Worldwide|
|Coinmama||A veteran broker platform where Ether and Bitcoin can be bought using a credit card or cash via MoneyGram and the Western Union.||Good reputation, beginner friendly, great interface, big range of payment options, fast transaction time.||Worldwide|
|Kraken||The largest exchange in Euro volume and liquidity and is a partner in the first cryptocurrency bank.||Good reputation, good exchange rates, low transaction fees, minimal deposit feet, great user support, secure.||Worldwide|
|GDAX||A subsidiary of Coinbase that offers a secure and easy way for traders to buy and sell digital assets online across nine trading pairs.||Security, reasonable Fees, beginner friendly, nine trading pairs.||US, Europe, UK, Canada, Australia, and Singapore|
|ShapeShift||A leading exchange that supports a variety of cryptocurrencies||Good reputation, beginner friendly, dozens of cryptocurrencies available for exchange, fast, good prices||Worldwide|
|Poloniex||One of the world’s leading cryptocurrency exchange that offers a variety of currency pairings and advanced tools and data analysis||Fast account creation, feature rich, high-volume trading, user-friendly, low trading fees, open API||Worldwide|
|Bitstamp||One of the first generation exchanges that have built a loyal customer base||Good reputation, high-level security, low transaction fees, good for large transactions.||Worldwide|
Read more — Best Cryptocurrency Exchanges
Future of Ethereum
Despite the fact that Ethereum, much like Bitcoin, has been around for many years, it only just started growing mainstream media’s and global attention. A lot of experts agree that it is a disruptive technology that is set to not only entirely change the way Internet works but also change services and industries that have been existing for hundreds of years. You can check the price index and analysis of Ethereum.
Ethereum Price Predictions: 2019, 2020
Most of the people are focused solely on the Ethereum price or how Ethereum price predictions are going to play out. Sometimes it’s not simply the value of the price of Ethereum but the actual projects which successfully use on the Ethereum chain.
These factors will ultimately help discover the true potential of this technology, by providing a universal programmable blockchain and packaging. The Ethereum project hopes to do the same for peer-to-peer human collaboration as a healthy to create and expand the crypto verse and push Ethereum forward!
Ethereum is fast arising as a major cryptocurrency. In the last few days, it has scaled new heights very consistently. This is one of the main reasons why most of the investors are also looking at Ethereum as a long-term investment risk. This brings us to the important question
What can be the price of Ethereum in the future?
You need to know that you have to look into the usability as well as the application of the cryptocurrency. When understanding usability and application, it would become easier for you to figure out how its value can appreciate.
When you’re looking at Ethereum, you would realize it’s carrying capability that is it provides decentralized processing power as well as bandwidth. This also means that the value of Ethereum would progress in the future.
By the end of this year that is 2019, it is expected that Ethereum would be somewhere around $ 500. Similarly, by the end of the next year 2020, it is assumed that Ethereum would be around $ 2,000.
Thus, when you look at the kind of profits which are expected from Ethereum, you would get that it has a long way to go still.
Reasons why Ethereum can appreciate by a notable amount
Some of the reasons include:
- Increasing application uses
- More companies adopting decentralized cloud-based applications
- Increased usage of smart contracts
These are the main 3 reasons why Ethereum is being more widely used. You need to remember that when it comes to Ethereum, the more the platform is used, the higher would be the price of the token. According to the market cap, it is also expected to become the 2nd most valuable cryptocurrency. This is one of the major reasons why it would consistently appreciate as well over the years.
So, whenever you’re looking to invest in any of cryptocurrencies, it is a much better idea to look at the option of Ethereum. You would understand that not only it has a strong application but also significant potential for appreciation.
**Note: Information contained in this guide is not an offer or solicitation to buy, hold, or sell any security. We’re not financial advisors and are simply providing information for educational purposes. Investing in ICO involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment.
Investors should consult their financial advisor before investing in ICOs. Furthermore, the SEC has warned investors residing in the United States and other jurisdictions that ICOs may constitute securities.
Hope! this guide helped you to understand what is Ethereum and also, we’ve discussed the price prediction and mining process to earn more Ethereum token.
If you have any query, feel free to tell us in the comment section. We are happy to help you.