Cryptocurrency Ethereum (Ethereum) – analysis of the course in 2018, the appointment of a cryptosystem and differences from bitcoin

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The world first heard about the platform “Ethereum” at the end of 2013, when 19-year-old magazine writer for Bitcoin Magazine, a brilliant programmer Vitalik Buterin, presented a “White list”, which addressed the technical options for the new project. The project has been very successful, cryptomonad of this system today are popular not less than bitcoins, which are also in the current year significantly increased in price. In this article we will look at the Ethereum cryptocurrency, you know what this network is different from the cryptosystems of the Bitcoin, which is significantly ahead of the value of all other coins, and what is its main purpose.

The Ethereum is a platform that opens opportunities for developers to build decentralized applications.

Ethereum allows you to enter into “smart contracts”, which are strictly prescribed conditions and eliminate the need for the involvement of a third party as a mediator between the parties to the transaction.

Course kryptonite: confirmation of demand for Ethereum

In the primary stage, when the project called Ethereum has only begun to gain momentum, the cost of one coin of this system did not exceed 30-50 cents. At the time of writing, the unit price of this cryptocurrency is around 870 US dollars. Course Ethereum continues to grow rapidly, as eloquently currency charts. For a change of course Ethereum you can watch here.

What affects the rate of the cryptocurrency? The cost of “Air” depends on the growth in the number of companies using the platform to create their applications, and the demand amount of cryptocoins as a tool for payments.

On the dynamics of growth affects the share of the major holders of the coins, the disposal of which are fortunes. Expressed even an opinion that Ethereum may soon overtake the cost of its rival – bitcoin, however, the validity of those assumptions is seriously in doubt.

The Purpose Of Ethereum

One of the key assignments of this platform is to generate applications that run on the principle of decentralization. Solutions, functioning on the basis of the system have the following advantages:

  • safety: the applied technology of cryptography is to protect applications from attacks by cyber criminals;
  • “immunity” from making changes: once a contract is created no one is able to modify its terms;
  • guarantee performance applications.

Not to mention the promising startups that are created on the basis of “Ethereum”. So, platform-Oracle Augur managed to collect during the initial offering of coins at the start of the campaign, almost $ 5.5 million. Her specialty is making predictions on the outcome of certain events, after which the funds are transferred to the account of the winning side.

Through the Ethereum amount of cryptocoins you can pay or just to make a money transfer. Given the rising cost of coins in this kryptonite, which according to expert estimates, will continue in the next year, kryptonite can be an appropriate asset to invest.

Bitcoin and Ethereum: the main differences

Despite the fact that both crypto-currencies based on the blockchain, and at first glance almost identical, between them there are significant differences. Consider the most important ones.

  • The maximum number of coins in circulation
  • The issue of bitcoins is specifically “locked” by the fact that the final volume of the mass of the means was equal to 21 million BTC in 2140. The Ethereum does not have a high threshold, being designed for unlimited production with an annual growth rate of the money supply by 18 million ETH.

  • The speed of operations
  • Creating a block in Bitcoin is 10 minutes, this speed reduces the attractiveness of the coins in terms of liquidity. At ETH, this figure is 15 seconds. Given the more rapid implementation of operations provided by a higher volatility of cryptocurrency.

  • The purpose of creating
  • Kryptonite the purpose of Bitcoin is to make money transaction between users of the network, this was the only purpose of its creation. Ether, on the contrary, was prepared as a platform for building applications, in addition to the launch into circulation of a unit of platform “ETH”.

  • The owners of the cryptocurrency
  • Currently, for the most part managed their own bitcoin miners. In the case of ether we see a different picture: the main part of this currency is in the possession of persons who bought coins in advance (let’s not forget that the financing of “Ethereum” was due to the procedures for initial placement of coins among investors). But, if you believe the forecasts, in the next five years, this difference can be neutralized and the advantage will be in the hands of miners.

    Mining methods: how to get ETH

    What are the ways you can become the owner of the second most popular cryptocurrency in the world? Currently, to achieve this goal there are five possible options.

  • Acquisition of ether for money or other cryptocurrencies
  • To do this, just need to go to the exchange or exchange, and to purchase digital currency. The highest turnover of such contracts provide stock market traders who is active and willing to trade live is the high volatility of this crypt allows you to make good money on the fluctuations.

  • Mining on graphics cards
  • This method is suitable for those who prefer to make the ether using the power of the computer. A novice miner will not be superfluous to know what to carry out mining of this cryptocurrency is possible only on 64-bit systems “Windows”. For the full mining will need:

    • the graphics card is equipped with video memory of at least 2-3 Gigabytes (prefer AMD); the optimal number of cards – from 4 to 6;
    • at least a dual-core processor with a frequency higher than 2.4 Hz;
    • the “RAM” of no less than 4 Gigabytes (before hashing 2 GB must be unoccupied);
    • installed components of Visual C++ Redistributable.
  • Mining pools
  • Effective is considered a “collective” mining the ether, the owners of the computers are combined into pools – distributed computing network, work together and share the profit among themselves. One of the most popular pools are:

    • Ethermine;
    • ETHPool;
    • NiceHash;
    • Minergate;
    • ETH Nanopool.
  • Cloud mining (hashing)
  • For those who want to mine Ethereum without extra costs for special equipment, a viable option could be the participation in the use of cloud services. This path involves the use of resources owned by the data centers. Cloud mining has a number of advantages:

    • the lack of noise discomfort due to constantly working in the building equipment;
    • savings on electricity bills;
    • the lack of need for round the clock to monitor the smooth operation of the unit.

    However, cloud mining is associated with certain risks – there is a chance that the profit will not be paid. When choosing a platform, you need to be extremely careful, it is recommended to work with reliable services that has a good reputation.

  • Earnings on cranes
  • If the prospect of mining is not attractive, you can try another method of mining this cryptocurrency. Essential “faucets” – websites that give out small amounts of cryptocurrencies for visits or other actions (registration, viewing ads, etc.). On big earnings here should not count, to the same monotonous uniformity of operations quickly bored. But “crane” earnings available to everyone, especially those who do not want to delve into the technical complexity of the mining process.

    Vault of coins: ETH-wallet

    As with any cryptocurrency coin that network need a wallet – a place where you will store your coins. In addition to the official website kryptonite, Ethereum-wallet you can open and other resources. The greatest confidence among the fans of cryptocurrency are the following services:

    • Bitflip (young and promising);
    • blockchain.info (allows you to store BTC in addition to air);
    • ethereum.org (you can download a Mist or EthereumWallet and install it on your PC);
    • exmo.me (after registration on the stock exchange Ethereum-wallet opens automatically).

    Major exchanges where you can buy ETH

    In the network there are many sites selling ETH. In fact, these coins work today of all crypto currency exchange, without exception. The most popular of them are the following:

    • Poloniex;
    • Cryptsy;
    • Bitstamp;
    • Bter;
    • Bitfinex.

    Conclusion

    Cryptocurrency Ethereum is now behind the industry leader, which remains Bitcoin. This is not to say that cryptomonad this network are less promising, as, in fact, currencies do not compete, but complement each other.

    Each of the systems is the first of its kind, Bitcoin was the first cryptocurrency payment system, and the Ethereum was the first system for creating new projects.

    No doubt that the network will continue to develop and will long remain in the lead. While the market is simply no other similar cryptosystems, which would have lasted just as long and continuous work has proven its efficiency in terms of uptime, security, and other, not less important parameters.

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