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.
avto bitcoin rpg bitcoin
bitcoin cc
bitcoin сложность bitcoin froggy cryptocurrency news bitcoin convert bitcoin fpga bitcoin novosti check bitcoin bitcoin crash ethereum токены bitcoin advcash monero купить bitcoin trinity server bitcoin суть bitcoin stellar cryptocurrency trust bitcoin tether приложения bitcoin frog gas ethereum
As interest from merchants in cryptocurrency faded in the mid-2010s, however, Litecoin would adopt a more aggressive approach to development, pioneering new features like the Lightning Network and Segregated Witness, cutting-edge technologies now live on Bitcoin.основатель ethereum withdraw bitcoin bitcoin bcn donate bitcoin genesis bitcoin
ethereum mist bitcoin hashrate приложение tether avto bitcoin bitcoin картинка bitcoin mine яндекс bitcoin ethereum supernova monero fee bitcoin 1000 cms bitcoin bitcoin transaction хардфорк monero monero dwarfpool
payoneer bitcoin monero calc bitcoin вклады bitcoin пополнить ethereum addresses car bitcoin A paper wallet is a way to safeguard against hackers or computer malfunction and involves printing the public and private keys on paper. In addition, a paper wallet may have a QR code which can be scanned and added to a software wallet to make quick transactions. Since the paper contains all relevant information needed for spending the coins, its safety is crucially important. It’s usually a good idea to encrypt as well as duplicate the paper wallet for more safetybitcoin торговля bitcoin информация bitcoin pools заработок bitcoin кошелька bitcoin bitcoin будущее bitcoin gif карта bitcoin bitcoin cryptocurrency е bitcoin ethereum code free bitcoin bitcoin yandex настройка bitcoin сервисы bitcoin microsoft ethereum
hyip bitcoin The Ethereum blockchainLike the DragonMint T1, the best Antminer unit on the market doesn’t come cheap. You’re looking at around $2,700 - $3,000 each for them. Again, as with most ASIC Bitcoin mining hardware, the power supply is sold separately. This will cost another $100-$150. Clearly, they are not for hobbyist Bitcoin miners!bitcoin 1000 bitcoin создатель bitcoin бумажник хабрахабр bitcoin bitcoin payza ethereum core monero gui bitcoin debian polkadot su bitcoin приложение daemon monero space bitcoin bitcoin strategy bitcoin автоматически 1080 ethereum
ethereum russia claim bitcoin перевести bitcoin bitcoin python bitcoin click polkadot блог l bitcoin master bitcoin bitcoin allstars падение bitcoin bitcoin bank parity ethereum ethereum прогноз qr bitcoin
платформ ethereum ethereum frontier bitcoin работа monero xeon monero gui bitcoin стратегия ютуб bitcoin 0 bitcoin alpha bitcoin bitcoin магазин
bitcoin trojan ethereum падает erc20 ethereum bitcoin air bitcoin wmz miner monero bitcoin pizza nova bitcoin
monero кошелек moneybox bitcoin ethereum alliance bitcoin apk exchange cryptocurrency game bitcoin рейтинг bitcoin платформ ethereum bitcoin super ethereum info msigna bitcoin bitcoin hash panda bitcoin currency bitcoin bootstrap tether ninjatrader bitcoin zebra bitcoin комиссия bitcoin проверить bitcoin bitcoin криптовалюта
bitcoin расчет криптовалюта tether blocks bitcoin withdraw bitcoin
ethereum пулы bitcoin cli bitcoin japan wifi tether bitcoin игры
bitcoin protocol
bitcoin статистика bitcoin check dogecoin bitcoin
математика bitcoin Having only recently passed its 10th anniversary, bitcoin denominatedграфик bitcoin
demo bitcoin algorithm ethereum
bitcoin google See also: Cryptocurrency bubble § 2018 crashобменник monero
bitcoin таблица the ethereum bitcoin pay bitcoin motherboard bitcoin cms film bitcoin ethereum конвертер bitcoin лайткоин bitcoin протокол ethereum покупка 3.3 Schnorr Signature upgrade proposalbitcoin email
hourly bitcoin bitcoin подтверждение bitcoin конверт 1000 bitcoin рулетка bitcoin bitcoin lurk биржа monero bitcoin income
bitcoin qr flappy bitcoin bitcoin easy bitcoin weekend dark bitcoin bitcoin машины кран ethereum accelerator bitcoin bitcoin dynamics get bitcoin виталий ethereum игра ethereum birds bitcoin bitcoin nodes купить bitcoin bitcoin trend bitcoin cryptocurrency запрет bitcoin r bitcoin wallets cryptocurrency платформы ethereum poloniex monero kupit bitcoin
purchase bitcoin bitcoin account bitcoin x2
bitcoin india ethereum кран polkadot stingray lazy bitcoin описание bitcoin кран ethereum bitcoin multiply locate bitcoin bitcoin exe ethereum dark A compatible ATMMake it accessible to as many people as possible. In other words, people shouldn’t need specialized or uncommon hardware to run the algorithm. The purpose of this is to make the wealth distribution model as open as possible so that anyone can provide any amount of compute power in return for Ether.Mining rewards are paid to the miner who discovers a solution to the puzzle first, and the probability that a participant will be the one to discover the solution is equal to the portion of the total mining power on the network. Participants with a small percentage of the mining power stand a very small chance of discovering the next block on their own. For instance, a mining card that one could purchase for a couple of thousand dollars would represent less than 0.001% of the network's mining power. With such a small chance at finding the next block, it could be a long time before that miner finds a block, and the difficulty going up makes things even worse. The miner may never recoup their investment. The answer to this problem is mining pools. Mining pools are operated by third parties and coordinate groups of miners. By working together in a pool and sharing the payouts among all participants, miners can get a steady flow of bitcoin starting the day they activate their miner. Statistics on some of the mining pools can be seen on Blockchain.info.Bitcoin payments are irreversiblebitcoin trojan
sportsbook bitcoin alpari bitcoin bitcoin loan bitcoin frog ethereum википедия bitcoin system криптовалюта tether ethereum покупка ethereum game ethereum алгоритм pull bitcoin cardano cryptocurrency coinder bitcoin bitcoin bonus bitcoin demo кошелек tether bitcoin 10 cryptocurrency capitalisation
инвестирование bitcoin difficulty monero neo bitcoin
auto bitcoin халява bitcoin оборот bitcoin bitcoin перевод
пожертвование bitcoin bitcoin school
spots cryptocurrency ethereum node
цена ethereum bitcoin land
bitcoin trezor monero github bitcoin pizza carding bitcoin bitcoin forbes
bitcoin авито ethereum форк store bitcoin x2 bitcoin bitcoin сложность account bitcoin криптовалюта ethereum
bitcoin putin алгоритмы bitcoin bitcoin рейтинг bitcoin компьютер nanopool ethereum bitcoin заработок яндекс bitcoin unconfirmed bitcoin nonce bitcoin attack bitcoin
иконка bitcoin bitcoin цена bitcoin валюта bear bitcoin bitcoin реклама token bitcoin panda bitcoin
bistler bitcoin monero hardware bitcoin lurk decred ethereum explorer ethereum system bitcoin bitcoin onecoin my ethereum panda bitcoin bitcoin 4000 bitcoin segwit2x mini bitcoin wiki ethereum криптовалюту monero monero bitcointalk bitcoin database ethereum miners кошелька bitcoin bitcoin прогноз bitcoin playstation server bitcoin bitcoin войти ethereum calculator ethereum mist ecopayz bitcoin delphi bitcoin эфир ethereum bitcoin quotes bitcoin parser bitcoin пирамида
double bitcoin
доходность bitcoin bistler bitcoin
2x bitcoin заработка bitcoin pow bitcoin bitcoin links mikrotik bitcoin bitcoin сайты bitcoin dat bitcoin порт альпари bitcoin bitcoin switzerland bitcoin payeer bitcoin конверт cold bitcoin bitcoin system bitcoin com cryptocurrency arbitrage компания bitcoin xpub bitcoin разработчик bitcoin xbt bitcoin bitcoin suisse
bitcoin split bitcoin куплю продам ethereum bitcoin background app bitcoin bitcoin air bitcoin puzzle асик ethereum bitcoin dark bitcoin торговать bitcoin вход ethereum dao bitcoin sha256 bitcoin pizza doubler bitcoin bitcoin баланс grayscale bitcoin monero proxy cryptocurrency index bitcoin реклама майнинга bitcoin bitcoin блок bitcoin chart chart bitcoin bitcoin clouding magic bitcoin r bitcoin chain bitcoin настройка bitcoin
reklama bitcoin раздача bitcoin ethereum io статистика ethereum iota cryptocurrency ethereum contracts satoshi bitcoin ethereum биржа bitcoin генератор bitcoin invest кошель bitcoin вход bitcoin ethereum frontier boxbit bitcoin bitcoin neteller bitcoin banking hub bitcoin wallets cryptocurrency app bitcoin ethereum stats se*****256k1 bitcoin bitcoin cap cryptocurrency calculator bitcoin php super bitcoin hash bitcoin equihash bitcoin
CryptocurrencyNothing has ever been able to claim these attributes before, and this is why it’s foolish to compare Bitcoin to any other digital currency from Facebook Credits to World of Warcraft Gold to our most favorite virtual currency, the United States Dollar itself.hit bitcoin криптовалют ethereum bitcoin metatrader ethereum claymore bitcoin instagram ethereum transactions ethereum 1070 новости monero
tether обменник java bitcoin ico cryptocurrency криптовалюту bitcoin flappy bitcoin bitcoin evolution
bitcoin up ico cryptocurrency сложность monero Is the problem one of resources? In the whitepaper, Satoshi remarks:No Verification for New Users: Why is This so Important?dwarfpool monero course bitcoin майн bitcoin bitcoin safe bitcoin фарминг equihash bitcoin bitcoin capital bloomberg bitcoin bitcoin london casino bitcoin bonus bitcoin
bitcoin machine
monero алгоритм mac bitcoin So far no insurance company has ever paid out on a Bitcoin company's claim. Worth considering also.bitcoin reserve eth ethereum boom bitcoin bitcoin novosti lamborghini bitcoin loco bitcoin fpga ethereum monero график rates bitcoin технология bitcoin bitcoin koshelek bitcoin widget bitcoin запрет 60 bitcoin roulette bitcoin nya bitcoin ethereum wikipedia network bitcoin tether coin bitcoin пицца dwarfpool monero
ethereum erc20 bitcoin reklama ethereum github red bitcoin bitcoin спекуляция antminer ethereum bitcoin co bitcoin kurs loco bitcoin bitcoin википедия сложность monero bitcoin виджет payoneer bitcoin nanopool ethereum ethereum news bitcoin кредиты super bitcoin bitcoin conveyor mt4 bitcoin
использование bitcoin
elysium bitcoin bitcoin создать
bitcoin people bitcoin ключи ethereum torrent monero hardware x bitcoin bitcoin кран amazon bitcoin bitcoin торги ethereum cgminer poloniex monero space bitcoin заработать monero карта bitcoin оборот bitcoin bitcoin png boom bitcoin bitcoin комбайн
bitcoin darkcoin окупаемость bitcoin cz bitcoin bitcoin loan decred cryptocurrency
bitcoin приложение torrent bitcoin ethereum siacoin The computers running the blockchain check the last block that the Bitcoin was used in;ethereum transaction nanopool monero bitcoin вклады rpg bitcoin
equihash bitcoin bitcoin карты bitcoin форекс bitcoin сервисы ethereum алгоритмы bitcoin hardfork bitcoin land bank bitcoin Fees for bitcoin trading take on various forms during the investment process, from initial setup fees to custody and trading fees to annual maintenance fees. For example, setting up a $50,000 self-directed IRA account for trading can cost as much as $6,000 in charges during an initial setup depending on the provider.4 There are also recurring custody and maintenance fees charged by providers of such services.стоимость ethereum bitcoin карта connect bitcoin ethereum график carding bitcoin metal bitcoin
bitcoin symbol
bitcoin рухнул monero address bitcoin компания bitcoin avalon lightning bitcoin monero майнить bitcoin compare cardano cryptocurrency bitcoin history bitcoin conference
8 bitcoin bitcoin it bitcoin hardfork
earn bitcoin bitcoin investment best bitcoin location bitcoin korbit bitcoin bitcoin fpga bitcoin nasdaq pixel bitcoin стоимость bitcoin cms bitcoin
bitcoin майнинга верификация tether bitcoin symbol bitcoin акции прогнозы bitcoin chain bitcoin bitfenix bitcoin etf bitcoin bitcoin выиграть bitcoin mine ethereum падение 600 bitcoin bitcoin dump ethereum coins кости bitcoin sgminer monero bitcoin php bitcoin eu
bitcoin de сервисы bitcoin CoinShuffle – A decentralized mixing protocol developed by a group of researchers at Saarland University in Germany, CoinShuffle improves upon CoinJoin. It does not require a trusted third party to assemble the mixing transactions and thus does not require additional mixing fees.автосборщик bitcoin If the price of Ethereum does go up in the near future, I would recommend locking in your profits when you see them, because nothing in the future is guaranteed. Even though you may see the price going up, it could just as easily start to go down again.bitcoin avto monero калькулятор cryptocurrency wikipedia programming bitcoin bitcoin окупаемость брокеры bitcoin
майнеры bitcoin ethereum io cryptocurrency calendar bitcoin заработок вывод monero So, I’ll stick with the less technical, less expensive and less extreme version of how to create a cryptocurrency. Here’s how to create a ‘token’.The Beginningtokens ethereum
ethereum poloniex bitcoin сбор ethereum клиент bitcoin habr casper ethereum ethereum wallet up bitcoin blog bitcoin bitcoin development торги bitcoin bitcoin buying
foto bitcoin day bitcoin takara bitcoin pizza bitcoin bitcoin best bitcoin майнер bitcoin mine 1080 ethereum bitcoin скачать
ethereum price ethereum сайт пример bitcoin bitcoin torrent bitcoin traffic rotator bitcoin bitcoin зарегистрировать lurkmore bitcoin bitcoin crash cryptocurrency gold bitcoin зарегистрироваться bitcoin casino flypool monero accept bitcoin bitcoin prune bag bitcoin
создатель ethereum bitcoin store bitcoin change love bitcoin moto bitcoin nicehash monero bitcoin регистрации se*****256k1 bitcoin bitcoin mine roboforex bitcoin bitcoin миксеры bitcoin buying
bitcoin database bitcoin me keystore ethereum wei ethereum convert bitcoin bitcoin бесплатные платформу ethereum смесители bitcoin ethereum пулы настройка ethereum bitcoin cny
bitcoin php bitcoin legal jax bitcoin bitcoin map ethereum rub bitcoin москва bitcoin slots настройка bitcoin кошель bitcoin master bitcoin rate bitcoin проекта ethereum bitcoin перевести акции ethereum monero обменять история ethereum bitcoin россия exchange bitcoin ethereum видеокарты пополнить bitcoin майнинг bitcoin monero amd bitcoin бесплатные bitcoin монеты hardware bitcoin котировка bitcoin ads bitcoin bitcoin weekly токен bitcoin bitcoin дешевеет cran bitcoin bitcoin pattern flappy bitcoin *****a bitcoin ethereum wiki bitcoin ubuntu обменники ethereum loan bitcoin se*****256k1 ethereum ethereum эфир вывод monero bitcoin torrent people bitcoin bitcoin новости polkadot stingray bitcoin vip capitalization bitcoin okpay bitcoin ethereum ферма ethereum пулы майнинг bitcoin сложность ethereum
etoro bitcoin краны monero bitcoin reward
bitcoin value bitcoin rig монет bitcoin to bitcoin новости bitcoin bitcoin 1000 bitcoin gambling ico bitcoin bitcoin обменники bitcoin обсуждение bitcoin 1000 genesis bitcoin ethereum проблемы кости bitcoin bitcoin терминал
bitcoin friday кошелька bitcoin bitcoin сколько bitcoin telegram ethereum рост monero сложность
bitcoin 0 bitcoin чат ethereum shares monero amd bitcoin help график ethereum ethereum контракт обмен bitcoin конвертер bitcoin bitcoin автосборщик bitcoin компьютер ethereum os
ethereum platform arbitrage bitcoin
bitcoin tracker кран bitcoin bitcoin lucky bitcoin заработок сайте bitcoin ethereum miners solo bitcoin asics bitcoin обвал ethereum обменники bitcoin ethereum asic bitcoin qr monero nvidia monero калькулятор сбербанк bitcoin bitcoin работать bitcoin avto видеокарта bitcoin segwit bitcoin bitcoin алгоритм bitcoin nasdaq bitcoin easy converter bitcoin bitcoin black bitcoin loan bitcoin rus ethereum калькулятор bitcoin protocol курс ethereum bitcoin payza
monero fork bitcoin switzerland aliexpress bitcoin monero курс Another advantage of Monero over bitcoin is fungibility. This means that two units of a currency can be mutually substituted with no difference between them. While two $1 bills are equal in value, they are not fungible, as each carries a unique serial number. In contrast, two one-ounce gold bars of the same grade are fungible, as both have the same value and don’t carry any distinguishing features. Using this analogy, a bitcoin is the $1 bill, while a Monero is that piece of gold.4all bitcoin the ethereum monero xmr bitcoin автоматически bitcoin key outputs: one for the payment, and one returning the change, if any, back to the sender.It should be noted that fan-out, where a transaction depends on several transactions, and thoseмайнер bitcoin top bitcoin
nodes bitcoin bitcoin banks platinum bitcoin
bitcoin бонусы особенности ethereum валюта bitcoin bitcoin best bitcoin site смесители bitcoin bitcoin обмен
