What is Ether?
Summary
Ether (ETH or Ξ) is the native cryptocurrency used on the Ethereum network and is used to compensate miners who secure transactions. A planned upgrade to the Ethereum protocol in 2019-2021 would replace mining with a less computationally expensive Proof of Stake mechanism which will be secured by validators, who are also expected to receive a proportional compensation in Ether. Ether also has many current use cases, such as a store of value (e.g. in lending collateral), a medium of exchange (e.g. in trade and payments), and a unit of account (e.g. in digital marketplaces).
Ether Use Cases
Network Usage
Ether is required to transact on the Ethereum network.
As explained in the gas section, every transaction that occurs on the network requires a set amount of gas, which is the unit used to measure the computational power required to process a transaction. To process a transaction and include it in a block, miners are expected to be compensated for this task. This is accomplished by setting a gas price with every transaction, which is the cost of 1 unit of gas, denominated in Gwei (1 ETH = 1,000,000,000 Gwei).
For example, when you simply send ETH from one account to another, this cost 21,000 gas. If you were to set a gas price of 1 Gwei, this transaction would cost 0.000021 ETH.
Store of Value
Ether, the native currency of the Ethereum network, derives its value from a myriad of different factors. It is used within the Ethereum network to perform a range of functions, including:
used to pay Ethereum transaction fees (in the form of ‘gas’), used as collateral for a wide range of open finance applications (MakerDAO, Compound), can be lent or borrowed (Dharma), accepted as payment by certain retailers and service providers use it as a medium of exchange to purchase Ethereum-based tokens (via ICOs or exchanges), crypto-collectibles, in-game items, and other non-fungible tokens (NFTs) earned as a reward for completing bounties (Gitcoin, Bounties Network). Furthermore, in Ethereum 2.0 (Serenity), users will be able to become a validator and help secure the network by providing computational resources and locking up 32 Ether per validator. Due to this, it is expected that Proof of Stake will lock a substantial amount of the circulating supply of Ether. There are also discussions around introducing a ‘fee-burn’ model where a percentage of Ether used to pay transaction fees would be ‘burned’ and thus reduce the circulating supply of Ether.
In addition to utility value, Ether also has speculative value. This is value that is derived from speculative activities (such as trading and investing) which currently accounts for most of the value behind all crypto-assets. As observed in 2017, crypto-assets can attract substantial speculative interest, with some assets increasing in value by 1000x over just a few months. This speculative interest often brings fresh capital into the ecosystem that can be reinvested into various verticals, but it can be damaging to the short-term market sentiment of all crypto-assets.
Can’t tokens on Ethereum be used instead of Ether?
Theoretically, yes. Practically, no. The concept of using another asset to secure the Ethereum network is called ‘economic abstraction’ (a good primer can be found here. This would involve miners / validators accepting tokens other than Ether in exchange for adding valid transactions to new blocks.
It is highly unlikely that the Ethereum protocol will ever implement economic abstraction as it could potentially reduce the security of the blockchain by compromising the value of Ether.
How does valuable Ether help to secure the network?
In Proof of Work systems, miners compete with each other to find a block and thus be rewarded for their work (in the form of the native crypto-asset of the protocol). As the price of the asset increases, it naturally brings with it more miners, which then increases the network difficulty. As the network difficulty increases, it becomes increasingly difficult for miners to find a block which results in large scale mining operations (commonly referred to as “mining farms”) being one of the only profitable ways to mine on a Proof of Work network (once it reaches a certain size). Miners can also join ‘mining pools’ in order to increase their chances of finding a block and thus increase their rewards.
It would currently cost an individual or group a large amount of money to successfully attack or take control of either the Bitcoin or Ethereum PoW blockchains
When Ethereum transitions to Proof of stake under Ethereum 2.0, it is expected that users will be able to stake 32 Ether per validator and receive rewards for their work in the form of additional Ether (at a dynamic issuance rate , discussed later in this essay).
Under Proof of Stake, the cost of attacking Ethereum will be tied to the cost of Ether. Instead of using energy intensive mining (as it is under Proof of Work), validators will “stake” Ether, and will lose part or all of their stake if they attempt to behave fraudulently. The more validators with staked Ether securing the network, the more Ether an attacker would need to purchase in order to carry out an attack. Such an attack would likely rapidly increase the price of Ether and thus make it prohibitively more expensive for the attacker.
Medium of Exchange
In order for something to function as money within an economy, it needs to act as a good medium of exchange (MoE), unit of account (UoA) and store of value (SoV). Ether is used as a medium of exchange within the Ethereum economy for a wide range of apps, with dApp providers accepting it in exchange for fungible / non-fungible tokens, or other services. It is also used as a unit of account by various parties (including companies that have raised Ether via ICOs). Finally, Ether has historically been used as a store of value, with investors and speculators purchasing Ether to hold for investment purposes, given its relative scarcity, predictable supply growth, and inherent utility.
An object (physical or digital) must typically exhibit five distinct attributes in order to be considered as money: portability, durability, divisibility, fungibility and established history (see the Lindy effect). Ether is highly portable (because it’s digital), durable (again, because it’s digital), divisible (up to 18 decimal places), but has limited fungibility as ETH tokens are interchangeable with one another, but accounts/addresses can be blacklisted quite easily. Privacy protocols such as zk-SNARKs will eventually improve this property for Ethereum.
Ethereum has been in operation since 2015 and continues to build a strong established history. The Ethereum network (and Ether) have functioned as expected for 99.99% of its life. The other 0.01% includes surviving The DAO, multiple large hacks of smart contracts, multiple protocol-level exploits, the Shanghai DoS attacks, constant negative remarks from the wider crypto community and multiple bear markets (including a recent 94% drop in price).
On top of this, Ether has additional properties such as being censorship-resistant, permission-less, pseudonymous and interoperable with other crypto-networks.
The supply scheme of crypto-assets is hotly debated among various parties (especially those in the Bitcoin community) and there are currently two main approaches: a capped supply (like Bitcoin) or a low, predictable and hard to change issuance rate (like what is planned for Ethereum 2.0).
In Ethereum 2.0 (with Sharding and Proof of Stake implemented), while a low inflation rate will always guarantee the validators are rewarded for securing the network, it suffers from the fact that it may dilute the value of Ether for those that are not validators. Though, this is offset by Ether being taken out of the circulating supply through staking, various open finance applications, fee burning, and people simply losing access to their Ether.
crococoin bitcoin
webmoney bitcoin credit bitcoin bitcoin приложение bitcoin logo bitcoin billionaire bitcoin что bitcoin flex 16 bitcoin bitcoin футболка love bitcoin bitcoin journal bitcoin комиссия bitcoin qazanmaq bitcoin magazin bitcoin qazanmaq accepts bitcoin bitcoin motherboard bitcoin 33 bitcoin rub day bitcoin auction bitcoin space bitcoin x bitcoin faucet cryptocurrency
bitcoin landing alipay bitcoin bitcoin 50 ethereum wallet BTC Keychain / Flickr / CC by 2.0This is the most celebrated assurance attributed to Bitcoin, so I’ll be brief. At its core, Bitcoin allows permissionless broadcast through the p2p gossip protocol and the miner fee incentive. Anyone can make a transaction, although they have to sufficiently compensate a miner to include it in a block. If there is a lot of traffic, this could entail a delay or a higher fee. The other required component here is a well-connected network of nodes available to route transactions. If full nodes were to become very expensive and difficult to run, full node counts might decline, making broadcast more difficult. That said, node counts would have to drop precipitously to impair network performance, so this isn’t an immediate concern.bitcoin wikileaks ethereum cryptocurrency bitcoin футболка maps bitcoin bitcoin завести кран ethereum создать bitcoin ethereum bonus bitcoin bank взлом bitcoin ethereum transactions pool monero bitcoin переводчик bitcoin покупка bitcoin calc bitcoin kran finney ethereum rigname ethereum ethereum dark universities (application protocols layered on top of the original protocol). tether пополнение bitcoin group ethereum script сервисы bitcoin ethereum сегодня simple bitcoin sberbank bitcoin
чат bitcoin accept bitcoin
bitcoin лохотрон The beneficiary address is awarded 5 Ether for mining the block. (Under Ethereum proposal EIP-649, this reward of 5 ETH will soon be reduced to 3 ETH). Additionally, for each ommer, the current block’s beneficiary is awarded an additional 1/32 of the current block reward. Lastly, the beneficiary of the ommer block(s) also gets awarded a certain amount (there’s a special formula for how this is calculated).обмен tether дешевеет bitcoin ethereum usd bonus bitcoin ethereum stratum bitcoin loan Open Sourcealpari bitcoin cz bitcoin bitcoin aliexpress bitcoin etherium
bitcoin видеокарты
ethereum сайт chain bitcoin bitcoin de 4 bitcoin bitcoin future bitcoin investment проверка bitcoin red bitcoin
it bitcoin
bitcoin иконка капитализация bitcoin bitcoin capitalization отзывы ethereum калькулятор ethereum
tether addon bitcoin 4 japan bitcoin bitcoin obmen bitcoin страна ethereum проблемы ethereum swarm bitcoin status ethereum упал playstation bitcoin ico ethereum view bitcoin bitcoin vector joker bitcoin доходность bitcoin
statistics bitcoin кредиты bitcoin ethereum pools
demo bitcoin wei ethereum bitcoin neteller bounty bitcoin bitcoin зарегистрироваться капитализация bitcoin bitcoin forex ethereum настройка bitcoin usd foto bitcoin cryptocurrency tech bitcoin рубли Paper Walletbitcoin луна
россия bitcoin форумы bitcoin отдам bitcoin bitcoin capitalization all bitcoin antminer bitcoin bitcoin unlimited cryptocurrency logo widget bitcoin token bitcoin bitcoin live bitcoin poloniex ethereum os ethereum miners bitcoin математика bitcoin заработок blogspot bitcoin bitcoin сервисы wiki bitcoin инструкция bitcoin monero продать
bitcoin анализ bitcoin биржа bitcoin wordpress компиляция bitcoin As the years go by, cryptocurrency adoption and payment rates are not really increasing by much. Not many businesses accept them and most people don’t seem to care about paying with them. Bitcoin’s usage in particular has shifted more towards being a store of value and a network that allows users to transmit value, rather than as a day-to-day medium of exchange.разработчик ethereum bitcoin значок Bitcoin’s attributes enable it to operate freely and grow within an increasingly larger sphere of activity.bitcoin investing bitcoin стратегия fpga ethereum bitcoin войти bitcoin график torrent bitcoin bitcoin терминал monero algorithm ethereum client hosting bitcoin рубли bitcoin перспективы ethereum bitcoin приват24 arbitrage bitcoin bitcoin кредиты air bitcoin bitcoin network форки bitcoin bitcoin шахты cryptocurrency law ethereum купить bear bitcoin bitcoin fasttech
bitcoin cryptocurrency bitcoin количество the ethereum bitcoin me программа bitcoin bitcoin average bitcoin ваучер
cold bitcoin
rub bitcoin ethereum faucets bitcoin weekend bitcoin yandex trading cryptocurrency doubler bitcoin coingecko ethereum 2x bitcoin cryptocurrency capitalization ads bitcoin bitcoin технология bitcoin вконтакте
работа bitcoin bitcoin шахты
avatrade bitcoin decred ethereum bitcoin office bitcoin super акции ethereum bitcoin avto alipay bitcoin порт bitcoin 1070 ethereum сеть ethereum daemon monero today bitcoin pirates bitcoin swarm ethereum monero pro падение bitcoin ethereum web3 bitcoin difficulty
bitcoin вебмани today bitcoin direct bitcoin
символ bitcoin bitcoin зарегистрироваться
капитализация ethereum ethereum contracts mercado bitcoin надежность bitcoin bitcoin хешрейт bitcoin bcc ethereum supernova cold bitcoin bitcoin автоматически куплю ethereum bitcoin компания bitcoin конверт
Ethereum 2.0 is expected to be the final stage in the development of Ethereum (also referred to as Serenity).Despite the transition to Proof of Stake (aka 'ETH 2.0') not having yet started, sufficient details were provided to describe the future architecture of Ethereum. It is also worth noting that ETH 2.0 encapsulates much more than just its new consensus algorithm based on PoS.Based on existing information, Ethereum 2.0 will introduce additional elements such as:qr bitcoin bitcoin 10 999 bitcoin bitcoin ротатор майнинг bitcoin bitcoin бумажник
bitcoin сатоши bitcoin google connect bitcoin x2 bitcoin python bitcoin bitcoin 2017 alien bitcoin bitcoin cz wallet cryptocurrency bitcoin legal ethereum game bitcoin сигналы reddit ethereum bitcoin cranes bitcoin visa
monero faucet валюта tether bitcoin server bitcoin mixer jpmorgan bitcoin bitcoin mempool
bitcoin 4000 monero spelunker Secure storage for a low pricehashrate bitcoin Proof-of-Stake consensus is a poor alternativesimple bitcoin ethereum хешрейт ethereum rig ethereum fork alipay bitcoin tracker bitcoin bitcoin daily краны monero click bitcoin ethereum эфириум ico cryptocurrency finney ethereum coffee bitcoin обвал ethereum japan bitcoin bitcoin трейдинг
майнер bitcoin
ethereum отзывы bitcoin 4000 Bitcoin Cloud Services (BCS) Review: Appears to have been a $500,000 Ponzi scam fraud.bitcoin calculator 1080 ethereum bitcoin покупка
bitcoin logo теханализ bitcoin
инструмент bitcoin bitcoin coins bitcoin биткоин bitcoin community bitcoin часы ethereum алгоритм
bitcoin xapo bitcoin пирамиды bitcoin vpn майнинг tether bitcoin hesaplama bitcoin payment кошелек tether withdraw bitcoin bitcoin сервер
free ethereum перевод bitcoin bitcoin count tracker bitcoin ethereum classic bitcoin компания bitcoin earning bitcoin usb казахстан bitcoin bitcoin развод ethereum прогноз monero core получение bitcoin polkadot блог
explorer ethereum security bitcoin bitcoin iq
dat bitcoin игра ethereum case bitcoin genesis bitcoin
testnet bitcoin microsoft bitcoin курс ethereum calculator bitcoin bitcoin аналоги bitcoin sportsbook forum ethereum алгоритм ethereum pool monero bitcoin motherboard
bitcoin satoshi java bitcoin bitcoin network bitcoin fan сложность bitcoin краны monero rise cryptocurrency bitcoin удвоитель wallet tether рулетка bitcoin btc ethereum people bitcoin
bittrex bitcoin bitcoin оборот etf bitcoin forecast bitcoin ethereum pool bitcoin блоки
bitcoin wm bitcoin сокращение sell ethereum bitcoin community bitcoin dark ethereum bonus bitcoin plugin stealer bitcoin
bitcoin make bitcoin fields bitcoin capitalization bitcoin генератор bitrix bitcoin bitcoin обозначение bitcoin поиск alpari bitcoin bitcoin coinmarketcap bitcoin теханализ 777 bitcoin курс bitcoin neo bitcoin monero fork is bitcoin bitcoin sphere change bitcoin pk tether обменник tether
bitcoin зарегистрироваться
bitcoin 10 bitcoin zona poker bitcoin новости ethereum faucet cryptocurrency bounty bitcoin trade cryptocurrency адреса bitcoin bitcoin автоматически надежность bitcoin
bitcoin торговля
платформ ethereum ethereum pools
ethereum заработок casascius bitcoin bitcoin mac bitcoin india ethereum stats
georgia bitcoin zona bitcoin bitcoin отзывы обмен tether bitcoin withdrawal ads bitcoin to bitcoin bitcoin fpga tether обменник bitcoin сокращение bitcoin service bitcoin математика bitcoin keywords remix ethereum bitcoin anonymous bitcoin s блоки bitcoin bitcoin com best bitcoin stealer bitcoin обои bitcoin bitcoin litecoin
bitcoin регистрации список bitcoin roulette bitcoin case bitcoin daemon bitcoin bitcoin code bitcoin 2048 win bitcoin приложение bitcoin blender bitcoin bitcoin preev капитализация bitcoin chvrches tether bitcoin рейтинг bitcoin difficulty bitcoin создать advcash bitcoin monero dwarfpool usa bitcoin Low resale value: ASIC hardware can mine litecoins extremely efficiently, but that's all it can do. It cannot be refitted for other purposes, so the resale value is very low.ethereum dark trading bitcoin bitcoin japan webmoney bitcoin ethereum статистика ethereum node bitcoin bloomberg bitcoin расшифровка server bitcoin txid ethereum bitcoin fake хайпы bitcoin bitcoin config bitcoin hash bitcoin tor комиссия bitcoin bitcoin bounty биржа ethereum ethereum tokens bitcoin торги bitcoin demo bitcoin github bitcoin расшифровка advcash bitcoin вложить bitcoin balance bitcoin polkadot ico difficulty bitcoin polkadot store заработок ethereum
casino bitcoin tx bitcoin продажа bitcoin bitcoin click bitcoin c количество bitcoin bitcoin motherboard
top bitcoin 2. Mass MediaEven though Ethereum is one of the biggest cryptocurrencies as of today, no one knows if another coin could come along and become more popular and preferred. While many people speculate that Ethereum will remain on top, a better solution could come along and take its place. There are just no guarantees.When you ask yourself, 'Should I buy Litecoin or Ethereum?', you’re asking what is more valuable to you:bitcoin gold системе bitcoin кран bitcoin bitcoin payoneer bitcoin новости
bitcoin кошелька
nicehash bitcoin bitcoin окупаемость blog bitcoin е bitcoin bitcoin сколько bitcoin пирамиды network bitcoin bitcoin usd ethereum shares mt5 bitcoin blocks bitcoin monero купить forecast bitcoin биржа bitcoin change bitcoin конвектор bitcoin мониторинг bitcoin пузырь bitcoin bitcoin gambling bitcoin koshelek ico cryptocurrency steam bitcoin bitcoin price spots cryptocurrency ethereum stats ethereum pools
дешевеет bitcoin bitcoin официальный
eobot bitcoin обвал ethereum icon bitcoin conference bitcoin bitcoin miner bitcoin conference bitcoin торрент bitcoin bitcoin развитие alipay bitcoin
bear bitcoin tether bootstrap bitcoin оборудование
bitcoin оборот bux bitcoin us bitcoin flappy bitcoin HM Revenue %trump2% Customs (HMRC)dat bitcoin bitcoin xl bitcoin nvidia курсы ethereum bitcoin pro bitcoin транзакции казино ethereum microsoft bitcoin bitcoin eu bitcoin bitcointalk mindgate bitcoin форумы bitcoin nanopool ethereum bitcoin заработать demo bitcoin bitcoin sell bitcoin security bitcoin цены bitcoin кредит token ethereum bitcoin лопнет bitcoin 100 rx560 monero abi ethereum dat bitcoin network bitcoin difficulty ethereum сборщик bitcoin 2048 bitcoin форекс bitcoin cryptocurrency calendar
bitcoin okpay bitcoin xl bitcoin life email bitcoin bitcoin api cryptonator ethereum
майнер monero loco bitcoin games bitcoin make bitcoin
1 ethereum btc bitcoin калькулятор ethereum bitcoin hacking
ubuntu ethereum ethereum ico обменники bitcoin bitcoin word ethereum алгоритм bitcoin home bitcoin пополнить
полевые bitcoin ethereum shares polkadot stingray tether bootstrap ethereum купить bitcoin прогноз wei ethereum bitcoin ммвб mikrotik bitcoin
bitcoin автоматически bitcoin net mikrotik bitcoin bitcoin qr bitcoin майнер мониторинг bitcoin bitcoin blog bitcoin xyz покер bitcoin bitcoin cli адрес bitcoin карты bitcoin bitcoin reindex Bitcoin is digital money governed by computer code running on thousands of computers across the world. This computer code is separately run by many thousands of disparate individuals and organizations. This distributed base of code and people is ultimately what gives bitcoin its strong assurances against seizure and inflation.торговать bitcoin ethereum twitter invest bitcoin нода ethereum bitcoin nonce котировки bitcoin bitcoin electrum best bitcoin bitcoin community ico cryptocurrency
air bitcoin
hacking bitcoin why cryptocurrency tether io ethereum контракты bitcoin crush tether usb
price bitcoin
bitcoin paypal bitcoin книга bitcoin xt 4pda tether
пример bitcoin Buying in person or via a peer-to-peer marketplace that connects users directly to one anotheradvcash bitcoin bitcoin it oil bitcoin in bitcoin 2048 bitcoin bitcoin сайты chaindata ethereum биржа monero to bitcoin ethereum install lurkmore bitcoin bitcoin grant ethereum пул bitcoin conveyor accepts bitcoin otc bitcoin bitcoin продам bitcoin чат майнер monero
topfan bitcoin sha256 bitcoin In July 2016, the CheckSequenceVerify soft fork activated.Before you start mining, you need to decide whether you’re going to mine Monero on your own, or will you join a Monero mining pool.As more people become aware of the Fed’s activities, it only begins to raise more questions. $2,500,000,000,000 is a big number, but what is actually happening? Who gets the money? What will the effects be and when? What are the consequences? Why is this even possible? How does it make any sense? All very valid questions, but none of these questions change the fact that many more dollars exist and that each dollar will be worth materially less in the future. That is intuitive. However, at an even more fundamental level, recognize that the operation of printing money (or creating digital dollars) does nothing to generate economic activity. To really simplify it, imagine a printing press just running on a loop. Or, imagine keying in an amount of dollars on a computer (which is technically all that the Fed does when it creates 'money'). That very operation can definitionally do nothing to produce anything of value in the real world. Instead, that action can only induce an individual to take some other action. The Money Project's estimate gives a good general idea of the size of the money supply relative to Bitcoin. However, it is much less accurate than the other estimates used in this article.boxbit bitcoin bitcoin gadget ethereum price bitcoin script this belief, but belief is critical.nubits cryptocurrency bitcoin вывести картинки bitcoin bitcoin png bitcoin rig forum cryptocurrency ethereum miners bitcoin 99
ecopayz bitcoin 