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A Review For Ethereum

Whenever we talk about crypto currencies or Ethereum, it is a bit challenging to explain the concepts for a new person because of its complex nature. For example, people have difficulty understanding block chains and peer-to-peer network systems although they have been working since the creation of Bitcoin (the very first crypto currency). Bitcoin network carry out its operations by solving complex problems and discovering blocks which eventually become block chains. Ethereum is a championed oversight of the Bitcoin technology, aimed at giving you a simpler interface and a user friendly platform to acquire amenities, commodities, issue services and so much more. An ethereum review is very mundane in order to grasp the basic concepts concerning ethereum and its products by default.

ethereum homepage

History

The concept of digital currency goes way back into the 1980s, its primitive name was Chaumian binding. Back then, the system was centralized and failed to gain favor from other parties. This was mostly due to its innate nature and lack of clarity in its operations. Thereafter, Wei Dai’s b-money was developed but it also could not hold water as the idea of creating monetary value through solving computational puzzles while maintaining a decentralized consensus was still vague. In 2005, Hal Finney attempted to merge both ideas in an attempt to fully create and implement the crypto currency. He however, failed in achieving a trusted computing.

The attempts in creating the seamless decentralized crypto currency were futile. This issue was owed to the fact that the developers assumed that all the users of the apps were known. For instance, if S number of people were to access the platform then S/4 would be of malicious intent and would easily be curbed by the security margins. With such vagueness of the system, it was prone to cyber-attacks, making the security vulnerable and one could easily hack and take control of majority shares just by a simple node. This fear of security breach held back any developments of the crypto currency until Satoshi Nakamoto took initiative.

Satoshi Nakamoto, the developer of bitcoin took up the initiative to delve into a field far much complex and radical. He established a decentralized platform of a peer-to-peer online currency. His development was the first tangible decentralized solution of digital currency. From this, other developers sought more into the field and came up with the idea that the platform can be used for more than just monetary purposes.

To bring this concept to be a more precise solution, Ethereum came into being on August 14th .Due to public demand by fans all over the continent, this platform was developed to bring more synonymy and eliminate the minor errors of the predecessor. A Swiss non-profit initiated this project and developed it into what it is today with contributions from the world’s top notch brilliant minds. The Ethereum is the second largest crypto currency platform worldwide with its users hailing from different corners of the world and improving its diversity.

What is ethereum?

Ethereum is a block chain platform which is open for everyone on the internet. It lets anyone build and use different applications which are decentralized using the block chain technology. The decentralized applications are the ones which are not instigated by a single party of a third party i.e. Government or a regulatory authority. Bitcoin was the first one to use block chain technology and its main purpose is the make fast and cheap online payments using the block chain network but unlike Bitcoin, Ethereum is a very advanced and improved version of block chain technology. Ethereum was designed to be flexible and adaptable to the changing circumstances of the world and the internet. Thus ensuring its services are more current and technologically up to date to curb any threats. Ethereum is a platform which is providing the necessary tools to developers to build new and improved decentralized applications.

what is eth

Blockchain concept behind Ethereum

Ethereum’s decentralized platform allows apps to run on a customized block chain. The block chain basically refers to a well-established infrastructure that enables people from different parts of the word to move around value while still maintaining links of their ownership of the property. With the block chain in place, developers can easily create markets, keep records of debts and assurances and effectively move fu

create ethereum democtatic organization

nds as instructed regardless of how dated the instructions were given. This comes in handy when there is an execution of a will prompted or even a future contract that needs to be signed off. The ethereum is swift in attaining all results simply by issuing an instruction. The biggest advantage of this platform is seen as the role of a middleman or any counterparty risk is reduced to a minimal. Therefore there is reassurance of safety in every transaction you may conduct while making purchases on this platform.

The block chain as opposed to a traditional server can do wonders with information. The traditional server is somewhat limited in that each application has its own individual server. With this in mind, the servers run the codes in isolated silos hence making sharing of information quite the task. The traditional server is not regarded as user friendly as when one app shuts down, several apps linked to it can suffer a meltdown causing a chain of reactions that thereafter end up affecting many users.

The block chain tries to solve this issue and give the user a more friendly experience in using Ethereum. With this infrastructure at hand, a user cannot only instigate their own node and create a ripple effect resulting into different commands; he or she gets to be compensated by other users and web developers. Thus guaranteeing that the user maintains his privacy and apps retain their decentralized nature as intended.

develop app on ethereum

Facts about Ethereum

Ethereum is a block chain based platform. There are some things which you need to know about it which will enable everyday person to understand and review in the way it is:

  • Not a cryptocurrency – Ethereum is not a crypto currency instead it is a platform which enable the users to develop and use decentralized applications.
  • Ether – Ether is a crypto currency which is used widely in the ethereum network. It is also the fastest growing crypto currency.
  • Banks like ethereum – As the demand for block chain and smar contract network increases, the value of ethereum also increases. Banks also like ethereum more than Bitcoin as 11 major banks – including HSBC, Barclays, and UBS – are having an interest to test a system which uses block chains to trade.

Is Bitcoin and Ethereum the same?

The sole purpose of ethereum is to bring forth a system with improved concepts in terms of scripting, altcoins and on-chain meta-protocols which allow developers to establish a consensus based application. The merge of these different standards with an aim to offer scalability, standardization and ease of development to the user is Ethereum’s upper hand to the bit coin.

While the Bitcoin and ethereum work on the same principles and technology, there is huge difference between their purpose and usage. Bitcoin is just a currency in nature which uses the block chain technology to track the owner of the currency whereas ethereum uses the block chain technology runs the programming codes for any decentralized application. In the ethereum network, miners do not mine to earn bitcoin instead they get “ether” which is a type of crypto currency which fuels the ethereum network. Alongside being a crypto currency which can be traded, Ether is also used by developers to make transactions on the ethereum network.

The fine line between these two platforms is efficiency and security. On top of the prior, the user can create their own arbitrary regulations, transactions outlays and transition functions as well as jolt down their own smart contracts. Ethereum is far much more powerful as compared to bit coin as the smart contracts can be unlocked given the correct conditions are met and in bulk. This is due to the fact that it is easy to establish the value, block-chain is less vague and the powers of Turing-completeness.

Smart Contracts

Smart contract is a term used to define a computer code which is written by an individual to run on the block chain. These contracts ensure the safe exchange of money, shares or anything of value. When the contracts run on the block chain, they become independent programs which cannot be tampered with. They execute themselves automatically when certain conditions are met which are written in the code thus making them the building blocks of the ethereum network. A good understanding of smart contracts is crucial if someone is interesting in conducting a comprehensive ethereum review.

ethereum smart contracts

Smart Wallet

Heard of the Ethereum wallet? It provides the gateway to the applications on the Ethereum. It gives the user access to all the decentralized applications enabling one to grasp and withhold ether amongst other crypto-assets built on Ethereum. It is through this smart wallet that you can write, deploy and as well use the smart contracts.

Ethereum accounts

In Ethereum, you will find the term state which is basically made up of accounts and with each account, a 20 byte address alongside a state transition. The latter is direct value transfers of value and information between accounts. The accounts contain four fields:

  • The account’s current ether balance
  • The account’s contract code
  • The nonce which ensures that any transaction does not get processed multiple times
  • The account’s storage which is usually empty by default.

Ether

This is the main cryptocurrency of the Ethereum; it is used to cater for the transaction fees. In the Ethereum there exist two different accounts each operating quite differently but the disparity is minimal;

  • Externally owned accounts whereby the account is operated by private keys. In this type of account, there is no code incorporated and one is not able to send a message by developing and instigating a transaction.
  • Contract accounts controlled by their contract code. Once a message is initiated in the contract account, a code activates to initiate an action in the internal storage, thereof sending other messages or even create more contracts.

Messages and transactions

The term transaction is utilized all over the platform and simply means signed data package sent from an externally owned account. In the transactions you will find the recipient of the message, a signature disclosing the sender, the amount of ether and the data to send. Within this transaction, you will also find two values encompassed, namely STARTGAS and GASPRICE. For every transaction there is a limit to the number of computational steps inclusive of the initial message and with each step, there is need to determine the price range. This factor prevents creation of infinite loop holes and breakdown of the system. The STARTGAS is the gauge of the number of computational steps whereas the GASPRICE determines the amount to be paid to the miner per step.

In a case whereby the ‘gas’ runs up, then the all the state changes are dismissed but the payment is still due. If the transaction stops midway then the remaining proportion of the transaction is stagnated and the fees refunded to the sender.

There exists a fine line between messages and transactions. It is safe to say that messages in Ethereum are transactions in Bitcoin. The differences are precisely stated below:

MESSAGES TRANSACTIONS
·They can be initiated externally by a unit or by a contract In Bitcoin transactions can only be instigated externally
·Ethereum contains an explicit option to contain data Transactions in Bitcoin do not offer this privilege
·A recipient in the Ethereum has option to respond to the message, translating to the diversity of functions encompassed in this platform

This is nonexistent in the bitcoin arena

The great advantage of the message tool is the user friendly concept it provides. The concept emanating from Ethereum that a contract can perform the same tasks as the messages and consequently initiate even more contracts is quite fascinating.

State function of the ethereum

The ethereum state functions are easy to understand and grasp;

  • Ensures there is legitimacy of the transaction; this is by checking on the number of values, the signature corresponds to that of the sender, the notches are synonymous to that of the sender. In the case whereby there is lack of congruency, an error is issued.
  • Calculation of the fees by establishing the STARGAS AND THE GASPRICE accumulated. The state also establishes the address of the sender and the signature. It simultaneously subtracts ether from the sender’s account and adds to the sender’s nonce. In the cases whereby the balance is insufficient, an error is allotted.
  • Initiate STARGAS, it sums up the quantity of gas per byte accrued in the transaction and the amount to be paid for in bytes.
  • The state is also responsible for transferring actions such as the value accrued from the sender’s account to the recipient’s account. If the recipient’s account is not yet finalized, one must fully create it. In instances where, the receiving account is a contract, it is mundane to run the contract code to a close.
  • At times the transfer value may cease due to insufficient funds on the part of the sender or the STARGAS has been exhausted, this usually translates to a regress of all the changes apart from the proceeds. The charges are accrued to the miner’s account.
  • The state ensures that all the remaining fees are refunded to the sender and the paid charges for the gas utilized to the miner.

Ethereum Virtual Machine (EVM)

Bitcoin and various types of crypto currency on the market serve only very limited amount of purpose. To expand the capability of these currencies, a huge amount of capital and time was required. Ethereum network was developed in order to serve more purpose than just transactions. The main innovation of ethereum network is the ethereum virtual machine (EVM). It is software which runs on the ethereum network and lets anyone to run any program on the network. The EVM has improvised the process of creating the block chains in a huge way. It is much easier to create block chain applications on the network because ethereum gives the capability of developing different applications in one place instead of creating new block chains for every application designed.

Decentralized applications

When someone hears the word decentralized application, he may not get a clear understanding of what this is. In today’s world where everyone is dependent on the internet and requires privacy of their own, it is very difficult to keep this privacy because of the centralized nature of the applications used. For example, the data of people is stored on huge servers owned by companies like Amazon and Google.

Whenever the Government of an authoritative third party, they can get their hands on the data without any hassle and the owner does not even know their data has been tampered with. This is how centralized applications and servers work because the internet is watched over by many powerful entities making it a centralized place. Whereas in decentralized applications, there is no presence of any centralized authority of Government who can get access to public data easily. Instead, the decentralized applications make it very hard for anyone to access the data. Everyone respects and wants their privacy which is why they should conduct a review for ethereum to understand what it is and how their decentralized applications work. In fact, any services which are centralized can be made decentralized by the use of ethereum network which exists.

ethereum apps

Decentralized Autonomous Organization (DAO)

Ethereum may also be used to create decentralized autonomous organizations (DAO). A DAO is an organization which does not have a single leader to control the organization rather it is run by programming code using smart contracts which is written on the block chain of ethereum network. A DAO eliminates the rules and structure of a traditional organization and is owned and run by everyone who purchases the tokens. These tokens give their holders the right to vote in the decentralized autonomous organization. A DAO operates completely independent of any human intervention and it is an organization which is transparent.

Advantages of Ethereum network

The advantages of decentralized applications running on block chain are:

  • Security – Without the presence of central point which can fail, the applications are secure and not vulnerable to any hacking attacks.
  • No tampering – The applications are developed around the principle of consensus, which takes corruption and any tampering of data out of the equation.
  • No downtime – The applications can never be switched off by one and they never go down.
  • Protection – Any third party cannot make changes to the data due to their decentralized nature.

Drawback of Ethereum network

Like everything else, ethereum network and applications aren’t perfect. There is always a risk of downturn. Because of the fact that the ethereum network runs on smart contracts which are written by human beings, any error or bugs related to code can lead to negative circumstances. If there is any mistake in the code and it gets exploited by a potential threat, there is no simple way in which the exploitation can be stopped. It can only be stopped by rewriting the code without the consensus. This is against the basic concepts of block chain where no one tamper with the data once uploaded. Regular ethereum reviews are needed by experts in order to avoid such circumstances and proper training and development of code programmers is needed so that there is no exploitation of this flaw in the ethereum network.

Proof of work vs. Proof of stake system

There are two systems working in the ethereum network to give rewards to individuals working within the network.

Proof of work Proof of stake
Proof of work is to define an expensive computer calculation called mining. In proof of stake system, the creator of new block is chosen depending on its wealth, also called stake.
A reward is given to the individuals who solves the problem first. There is no reward in this system, so the miners take transaction fees.
Miners compete to be the first to solve the problem. Proof of stake currencies may be several thousand times more cost efficient.

How to access Ethereum

There are several different ways in which someone can access the ethereum. Either you want to buy or sell Ether or have an application developed on the ethereum, first you have to join ethereum to access the facilities it has to offer.

One of the easiest ways to join the ethereum is use the Mist browser which is native to Ethereum. The mist browser provides the user an access to digital wallets and offers a user friendly interface to use it. It can be used to buy, sell, and store ether and also write or use smart contacts. Just like a browser allows an individual to surf the internet, Mist facilitates its user to dive into the world of decentralized block chain applications.

Another way to access ethereum is the MetaMask browser extension developed to turn Google Chrome into an ethereum browser. It will let you perform tasks related to ethereum and also let you develop and run decentralized ethereum applications. The extension will also work with Firefox and a bunch of other web browsers.

These browsers in conjunction with a variety of other browsers to access ethereum will let individuals with even minimalist knowledge to use and build decentralized applications. It will help decentralized applications to have their impact on everyday life and will hugely help to conduct an ethereum review for understanding and using the ethereum.

ethereum wallet

 

Mining ether

The Bitcoin mining is not quite decentralized as imagined as compared to ether mining which incorporates an algorithm dominated by application-specific integrated circuits. These computer chips are designed for this very purpose and are most efficient. Bitcoin miners also do not perform validation on the block chains locally; they rely on a centralized mining pool for provision of block headers.

For ether mining, an algorithm is developed based on randomly selecting ad generating a unique hash function per 1000 nonces, eliminating a wide range of computation for specialized hardware. Thereby, reducing the need of centralization to a bare minimum or even completely eliminate the need. A user can easily mine for ether for absolutely no charges up to a certain point in which they are required to pay from the first hash.

The ether mining is quite progressive by its own right. The developers are working towards making the mining storage to be in block chains. This will help the user to verify every transaction made and completely disregards the need of centralized mining pools.

Apps being developed on Ethereum

As the main purpose of Ethereum is to develop and use decentralized applications, there has been a lot development of decentralized applications. As the developers are just starting to use ethereum and develop apps, it is very hard to guess which apps will perform better and which will fail in the future. Anyhow, some of the apps being developed on ethereum network are discussed below.

Uport

Uport is an app which gives an easy and convenient way to its users so that they can control their identity and database. Instead of relying on centralized authorities, it gives its users a control over who can access their information and identity.

Provenance

Provenance is working on ethereum which helps in making supply chains more transparent. By looking at the origins and production of different products, it has enabled consumers to make different informed decisions regarding the products they buy and use.

Augur

Augur is a platform working on ether which allows people to make predictions and forecasts about future and then rewarding the individuals who have predicted them correctly. Predictions on the future world events are made on the platform e.g. who will win the next election. They are carried out by trading virtual shares. Also, if someone buys shares in winning predictions, they also get monetary rewards.

BlockApps

BlockApps provides the enterprises and individuals an easy and convenient way to build and deploy block chain applications. BlockApps provides the necessary tools and techniques needed to create different block chain applications.

The future for Ethereum

If you think that internet has affected your lives in any way, the same is going to happen in the future to everyone. It will have a great impact on everyone in the future. Keeping in view its block chains and the decentralized nature of the applications, it sounds quite futuristic. Not to mention the Ether which is going to be a great competition for Bitcoin. Although the value of Bitcoin has appreciated a lot, the demand for ethereum in the world is going to affect ether also.

By providing user friendly platforms to individuals, it has allowed them to get benefit from the block chain technology and indeed, it is going to affect and transform even more people worldwide. Decentralized applications have the potential to turn industries upside down such as finance, insurance, real state and many more. The only question is how to review ethereum and use it in the beneficial way to help people and not create chaos.

If you think that internet has affected your lives in any way, the same is going to happen in the future to everyone. It will have a great impact on everyone in the future. Keeping in view its block chains and the decentralized nature of the applications, it sounds quite futuristic. Not to mention the Ether which is going to be a massive competitor of Bitcoin? Although the value of Bitcoin has appreciated a lot, the demand for ethereum in the world is going to affect ether also.

By providing user friendly platforms to individuals, it has allowed them to get benefit from the block chain technology and indeed, it is going to affect and transform even more people worldwide. Decentralized applications have the potential to turn industries upside down such as finance, insurance, real state and many more. The only question is how to review ethereum and use it in the beneficial way to help people and not create chaos.

Conclusion

The Ethereum platform was initially developed as a cryptocurrency which was advancement that could be able to provide features such as on-blockchain row financial contracts, payment methods in the gambling markets and lifted withdrawal limits. There were problems initially with integration of applications, but the creation of a ‘Turing-complete programming language means that those contracts can be drawn up for either transaction purposes or applications as well. Ethereum goes a long way from being just another virtual currency. It involved a decentralized data storage unit, a decentralized application network, decentralized markets and many money features that make it stand out from the pack.  Being designed to be open-ended, Ethereum is a good investment to make that will serve both financial and none financial protocols in the coming years.

Where to buy Ethereum:

Binance – Read Binance Review HERE

Coinbase – Read Coinbase Review HERE

BitPanda – Read BitPanda Review HERE

HitBTC – Read HitBTC Review HERE

Gate.io – Read Gate.io Review HERE

Exmo – Read Exmo Review HERE

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