We will try to explain everything as straightforward as possible, but there is still one thing that you should familiarize yourself with before continuing this article. Bitcoin, Ethereum and every other cryptocurrency out there works on blockchain technology. In order to understand the concept of Ethereum more easily, you should learn about the technology behind it. Thankfully, we have already published an article that explains what blockchain technology is, so you can easily go ahead and read that before continuing with this one. Click on the following link to read about what blockchain technology is<\/a> and come back whenever you are ready!<\/p>\n <\/a><\/p>\n Ethereum can also be used on eToro, a fun and profitable social trading network. The concept is very interesting and innovative. Check out their official website<\/a> for more information!<\/p>\n<\/p><\/div>\n The mastermind behind Ethereum is Vitalik Buterin, a researcher and programmer who worked closely on the Bitcoin project in its early phase. He realized that there are many other opportunities and possibilities with the blockchain technology; possibilities that Bitcoin isn\u2019t taking advantage of. He pitched his idea of creating a decentralized, distributed computing platform that works with smart contracts, but his idea was turned down. Vitalik decided to go solo and he created the Ethereum network for everyone to use.<\/p>\n Basically what Vitalik Buterin created is a so called \u201cworld computer\u201d that stores applications and all of the necessary elements to run them on a decentralized network. These applications are called \u201cDApps\u201d (decentralized applications). The database is spread out across many different computers (nodes) on the globe. These nodes collectively work on maintaining and updating the database and executing the necessary smart contracts. Once an action is completed, the smart contract releases a set amount of Ether as a reward for the computing power.<\/p>\n Check out Ethereum\u2019s price history, or find out exactly how much one Ethereum (ETH) is worth right now by visiting Ethereum Price<\/a>.<\/p>\n<\/p><\/div>\n <\/a><\/p>\n Yes, Ether is a cryptocurrency, but it\u2019s not just that; it is the gas that\u2019s needed for the Ethereum network to function. All of the decentralized apps use it and the smart contracts automatically release Ether, without the need of a third party. While Bitcoin has a hard cap of 21 million Bitcoins, Ether doesn\u2019t have this limit. Ether is rather capped at maximum 18 million per year, which is 25% of the initial supply created for the crowdfunders in 2014.<\/p>\n Regardless of what you intend to do on the Ethereum network, you are going to need an Ethereum wallet to hold your cryptocurrency somewhere. Bitpanda is an excellent crypto trader that offers wallets for Ethereum, Bitcoin, Litecoin and even Dash.\u00a0Check out their website now<\/a> and open your first virtual wallet.<\/p>\n <\/a><\/p>\n As of 2017, Ethereum uses a proof of work (PoW) algorithm. This means that you are getting rewarded for the computing power that you use to successfully add a block to the blockchain. According to a recent press release by Vitalik Buterin, the Ethereum network might be switching to a proof of stake (PoS) algorithm in 2018.<\/p>\n What proof of stake basically means is that rather than proving how fast you can solve the mathematical puzzle, you need proof of how much Ethereum you own. You create this proof by making so called \u201cmaster nodes\u201d. These nodes contain a certain amount of Ethereum as proof of stake. The system distributes the rewards according to the proof of stake that each user has.<\/p>\n <\/a><\/p>\n In the following section, we are taking a look at everything important that\u2019s happened to Ethereum since Vitalik Buterin came up with the idea.<\/p>\n <\/a><\/p>\n Some may think that Ethereum and Bitcoin are the same exact thing with a different name, but that is not true at all. While they are indeed the two leading cryptocurrencies right now, there are some key differences in their core system protocol.<\/p>\n Bitcoin\u2019s blockchain revolves around a decentralized open ledger of transactions that constantly keeps getting updated. The nodes in the network work on solving mathematical equations in order to successfully add a block to the blockchain.<\/p>\n While the Ethereum network does this, it is also a platform that allows work with smart contracts. Smart contracts (lines of codes, scripts) are the main thing that sets Bitcoin and Ethereum apart from each other. The Ethereum network allows for DApps to be created for seemingly any real-world application. Everything is automated; those who do not hold up their end of the bargain even get penalized.<\/p>\n While it is true that Bitcoin is still by far the most valuable cryptocurrency, many people consider the Ethereum network to be the more advantageous one.<\/p>\n If you want to invest into Bitcoin, Optioment is a Bitcoin investment fund that offers impressive weekly interest on your deposit. Start your own account by visiting the official website<\/a>!<\/p>\n<\/p><\/div>\n Ethereum has gone through a lot since its launch, but there are still millions of people using it. Its exponential growth since the start of 2017 has made a lot of people conscious about this cryptocurrency. It has also allowed developers to work on an open-source, decentralized network. Ethereum is a lot more than a simple cryptocurrency; it has opened up development opportunities that were not possible before its existence.<\/p>\n Cryptocurrencies are also becoming a legit payment option. Even though Bitcoin is still the only cryptocurrency that is accepted in some places, there are other options. Websites such as TenX allow people to spend Ethereum and many other cryptocurrencies in the real world. You get a physical credit card that you can use anywhere, just like you would use a VISA or Mastercard, but you will be paying with cryptocurrencies. Check out what they’re offering on their official website<\/a>. At the moment, these are the crypto-coins that you can spend with TenX:\u00a0Bitcoin, Ether, ERC-20 Tokens, Dash and Litecoin. Check out TenX’s Payment Platform Whitepaper<\/a>, or\u00a0read this Bitcoinist article<\/a> about how TenX raised $34 million in only 7 minutes.<\/p>\n Just like Optioment, Bitley’s is another Bitcoin investment fund. The two funds are similar, but they work on a different business model. Take a look at what Bitley’s is offering here<\/a>!<\/p>\n<\/p><\/div>\n \t\t<\/em><\/p>\n Right now, Bitcoin and Ethereum and the two main attractions in the cryptocurrency world. Both of these cryptos are highly valuable and millions, if not billions of people are investing into them. Not only is it important to educate yourself about cryptocurrencies from a technical standpoint, but a financial one as well. Mining is one way of making money with these virtual currencies, but there are other, more passive alternatives. One of these alternatives is Optioment, a new and unique Bitcoin investment fund. If you are interested in a Bitcoin investment opportunity, be sure to read our Optioment review<\/a>.<\/p>\n You can also take a look at this online calculator for Optioment<\/a>! It can show you how much money you can make with this Bitcoin investment fund.<\/p>\n<\/p><\/div>\n \t\t<\/em><\/p>\n The main objective of this Ethereum review was to try and explain exactly what this system is and how it is used. Hopefully, you have learned something about this cryptocurrency and the blockchain that it\u2019s built on. If you deemed our review helpful, be sure to read some of our other articles that we have published about cryptocurrencies:<\/p>\n Ethereum…<\/p>\n","protected":false},"author":66,"featured_media":107691,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2116],"tags":[2121,2451,2446,2126,2161,2741,2736,2701],"class_list":["post-107421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-bitcoin","tag-blockchain-technology","tag-cryptocurrencies","tag-cryptocurrency","tag-digital-gold","tag-ether","tag-ethereum","tag-optioment"],"_links":{"self":[{"href":"https:\/\/6toplists.com\/index.php?rest_route=\/wp\/v2\/posts\/107421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/6toplists.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/6toplists.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/6toplists.com\/index.php?rest_route=\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/6toplists.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=107421"}],"version-history":[{"count":17,"href":"https:\/\/6toplists.com\/index.php?rest_route=\/wp\/v2\/posts\/107421\/revisions"}],"predecessor-version":[{"id":109361,"href":"https:\/\/6toplists.com\/index.php?rest_route=\/wp\/v2\/posts\/107421\/revisions\/109361"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/6toplists.com\/index.php?rest_route=\/wp\/v2\/media\/107691"}],"wp:attachment":[{"href":"https:\/\/6toplists.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=107421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/6toplists.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=107421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/6toplists.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=107421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"bitcoin](\"http:\/\/6toplists.com\/wp-content\/uploads\/2017\/06\/728x90.png\" "\\"Optioment,")
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\nWhat is Ethereum?<\/h2>\n
<\/a>
\nEthereum is a decentralized, open-source blockchain protocol (separate from Bitcoin) that works with smart contracts. Smart contracts are basically lines of code that execute certain actions (scripts). They can interact with other smart contracts, make decisions based on the available information and they store digital data. They also send out Ether, the currency of the Ethereum network when completing actions.<\/p>\n
\nWhat is Ether?<\/h2>\n
\n<\/a>![\"\"](\"https:\/\/www.bitpanda.com\/banner\/deu\/250x250\/Banner_250x250-de_bitcoins.png\" "\\"Coinimal,")
<\/a>Ether is the fuel that powers the smart contracts on the Ethereum network. It is a special line of code that is used to pay for the computing power that\u2019s necessary for executing a smart contract. Think of it as cash for using a vending machine (DApp). Ether is required for developers who want to build applications on the network, as well as users who want to interact with smart contracts on the Ethereum network.<\/p>\n
\nProof of Work vs. Proof of Stake<\/h2>\n
\nEthereum timeline<\/h2>\n
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\nDifference between Ethereum and Bitcoin<\/h2>\n
Top 10 Cryptocurrencies in 2017<\/span><\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n
\nConclusion<\/h2>\n
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