Ethereum is a new platform based on the world famous blockchain technology. Today, the Ethereum cryptocurrency is considered one of the most popular and, according to many experts, in the near future it will be able to compete with Bitcoin. What are the main differences between the new virtual money? What are the options for earning money? What is the algorithm for opening a personal wallet? More about everything.
After the creation of Bitcoin in 2009 and the emergence of a group of cryptocurrencies in the next few years, many felt that nothing new could be invented. But Vitaly Buterin managed to prove that the prospects of virtual money have not yet been fully disclosed. So, at the end of 2013, the first mention of the new Ether cryptocurrency appeared in the press. Just five months after that (in April 2014), the virtual currency was described in the "yellow book" of Gavin Wood. At the same time, from the first days of its appearance, the cryptocurrency was almost entirely based on the already existing Bitcoin algorithm.
Since the beginning of 2014, a lot of work has begun to raise funds for the development of a new project. Over time, virtual money has attracted the attention of individuals (investors), large companies and even banking institutions. At the same time, at the end of July 2015, the project was still launched. Six months later (in March 2016), the developers managed to create a more stable and reliable version called Homestead. The improvement of the system continues to this day.
The first thing that interests novice users is the features of the new Eth cryptocurrency, its main differences from competitors. It is worth highlighting a number of features here:
Ether is a virtual currency that can be used to transfer various data. This can be the results of votes, terms of agreements, and other information.
The new cryptocurrency is based on the principle of decentralization, which is typical for Bitcoin. This fact once again confirms that centralization is becoming a thing of the past, giving up leading positions to independent (decentralized) systems.
One of the main differences between the new virtual coins is their openness. The language that was used to create Ether can be used to write any software and using any of the existing programming languages. Due to the robustness of the application structure, it can be applied in the most demanding sectors, be it the transport sector or the healthcare sector. According to experts, this is what makes the platform popular and more and more people dream of buying Ethereum cryptocurrency. The plus is that the price of coins is also growing steadily.
The name of one coin is "Ether", which reflects one building block. An interesting fact is that the mentioned Ethers function only within the network. In this case, the block is a program with personal cache, balance and memory. It is the software that underlies the virtual currency code.
In Ether, it was possible to combine all the advantages that take place in blockchain technology. The capabilities of the system allow you to encode existing ones or form new systems.
Running special software is possible on any device, be it a computer, phone or tablet.
Mining Ethereum is simpler than Bitcoin and can bring good profits in the short term.
A group of professionals is working to improve the virtual currency, headed by the developer himself, Vitaly Baturin. There is even a philosopher who deals with the prospects for cryptocurrency.
When creating coins, three key approaches are always taken into account - ensuring meta-protocol, the ability to create a business, and accounting for the existing Bitcoin protocol.
To work with the new cryptocurrency, you will need to create an Ethereum wallet. But how will he get it? The algorithm of actions is as follows:
Download the archive with the required application, then select the location on your PC for installation and extract the files.
Click on the Ethereum icon and launch the application. After completing these actions, several windows open, which reflect information about the operations carried out recently. As a rule, it takes 3-5 hours to download all the data. This time depends on a number of factors - the parameters of the "hardware" of the personal computer and the speed of the connection to the network.
As soon as all blocks are downloaded to the hard drive, the virtual currency storage becomes available to users. Further, the money can be used at personal discretion, for example, to buy goods, transfer funds to other users, and so on.
To create a wallet, just click on the "Create wallet" link and then name the new storage. In the future, to obtain the required information about the wallet, it will be enough to click on its name.
If you need to deposit funds to the wallet, you should copy the specified address and conduct the transaction. The translation process takes 8-10 minutes, after which the funds appear on the account. The aforementioned information will also be needed when working with Ethereum faucets, where it is enough to enter the wallet number to make a profit.
In the process of using the storage, you may need to send funds to other users of the system. To carry out such a transaction, go to the "Send" tab and enter the number of the wallet where the funds will be sent.
The main advantage of Ethereum wallet is that the size of commission payments can be adjusted personally. There is even a separate column for this. But there is a nuance. The priority of the transaction depends on the size of the commission. The higher the amount the user "appreciated" the transaction, the faster it will go through.
To make Ethereum earnings and use of cryptocurrency safe, a wallet backup does not hurt. Such foresight will allow you to quickly restore access to virtual coins on your account.
All manipulations take a minimum of time, after which you can use the benefits of the new cryptocurrency.
One of the main advantages of the new virtual coins is wide opportunities for earning. In particular, many are interested in the issues of Ethereum mining, which, unlike the "outdated" Bitcoin, holds great promise for enterprising users. The first thing to start with is finding the right pool. The main selection criteria are the total capacity and the number of users. Today, two resources are in greatest demand - coinmine.pl/eth and eth.supernova.cc. The speed of the first reaches almost 50 Mh / s, and the second - about 28 Mh / s. If you wish, you can work with two pools at once (this is only welcome).
The process of mining Ethereum cryptocurrency occurs according to the following algorithm:
Registration on the website. Here you should come up with a personal PIN-code, which will be required when withdrawing the earned funds.
Creating a personal work account. Difficulties rarely arise at this stage. It is enough to add one or two numbers in the “users” columns. Next, its worth coming up with a password.
Installing a cryptocurrency wallet (this process is described above). This stage is mandatory, because otherwise, there will be nowhere to withdraw the earned profit. Once the Ether cryptocurrency wallet is generated, register it in the profile of the selected pool.
Downloading and installing the client. Further, to earn money, you should download a special program, unpack and install it on your PC. After that, in the document "coinmine.cpu" all data are erased, and the required information is written (depending on the pool). For one of the proposed sites, the line may look like this - /eth.coinmine.pl:3000/ Worker name / Password.
As soon as the manipulations described above are completed, you can start making money on the video card. To do this, you should launch the program and make a profit. At the same time, you can understand that everything is going according to plan due to the increased noise of the video card.
First, the wallet account will be zero. In principle, you can work with such a balance or buy some Ethereum cryptocurrency. It should be noted that the pool will not immediately recognize the new users video card - it will take some time.
Ethereum faucets: the subtleties of earning
The above method of earning involves certain expenses. In particular, it will be necessary to purchase equipment, without which it is difficult to count on a decent profit. But Eth-cryptocurrency can be earned in another way - using special faucets. What are the features of such earnings? Are there any prospects?
When compared with the faucets of popular cryptocurrencies (Bitcoin, Litecoin and others), Ether is significantly behind. But this is for now. The number of special services for making money is constantly growing. Despite this, you should not rush to the first resource you come across - the choice should be approached with caution, giving preference only to proven and guaranteed paying cranes.
At first glance, it might seem that the Ethereum cryptocurrency has practically no flaws and is suitable for any network user. It really is. But when working with a new virtual currency, there are still some risks:
Ethereum is a young cryptocurrency that can afford certain risks. Even in case of failure, the losses will not be large. In addition, the total price of the Ether system is in the range of several hundred million dollars (up to a billion). For comparison, the Bitcoin system rotates three orders of magnitude more funds. At the current stage, there is no guarantee that the "newly minted" cryptocurrency will move up as rapidly as today.
The Ether cryptocurrency has not yet passed the test related to the crisis of the leadership team. In particular, so far the main inspirer of the system is Vitaly Baturin, but at any moment this status quo may change. At a recent press conference, Vitaly himself admitted this shortcoming.
The new virtual currency is of increased interest among companies, banks and private users. More and more people decide to start a personal wallet and buy Ethereum cryptocurrency. The increased demand from users attracts attention from government agencies as well. Naturally, they are trying with all their might to take the new structure “under the hood”. Such attention carries certain risks not for the entire network as a whole, but for specific applications.
Despite the simplicity and security of the programming language used, there are still risks of a "break" at its weakest point. Compared to the same Bitcoin, it has been tested for seven years. As for the Eth cryptocurrency, despite its young age, the total capitalization already reaches one billion. At the present stage, there have been no problems with cryptocurrency, but there are no guarantees that failures will not occur in the future.
Over time, the new cryptocurrency can make the transition to Proof of Stake. On the one hand, such a change could lead to a significant breakthrough. In particular, the need for expensive equipment will disappear, and there is no need to confirm work (this is very important for Ethereum mining). On the other hand, there is a serious risk involved in such a transition. The hope is that the system will be tested before the innovation and only after that it will be put into operation.
There are also problems with network scaling. This is especially true when it comes to working with a large number of applications. But the developers promise that in the future the system will be optimized, and Ethereums earnings will become even more accessible to users.
Today there is a lot of talk about the future prospects of the new virtual currency. It is not entirely clear whether the reliability of the Ethereum wallet will be improved, whether new versions are planned to be released, whether new and more convenient applications can be expected.
Despite the existing difficulties, the development program for 2017-2018 is already ready. By the end of 2016, a new browser called Mist is planned. Also, by 2017, a new version of the blockchain is expected to appear. The new Ethereum 2.0 and Ethereum 3.0 will be released by 2017 and 2018, respectively.
Buterin assures that expanding the Ethereum faucet network and increasing the number of users is far from the ultimate dream of developers. According to Buterin, there are plans to make Ether a global platform that will work everywhere. At the same time, developers will have the right to develop new applications without updating the structure of the existing blockchain.
According to Buterin, the main advantage of the system is its security, reliability and controlled decentralization. Today, the platform is capable of accommodating over a hundred million users. For this reason, user safety is a top priority.