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.
Thus, Bitcoin is the first free, non-commercial software project with the intensity of a commercial product. Technologists can accumulate compounding wealth by working on a real platform, but have the unique right to contribute only as much time and energy as they prefer, under no fixed schedule or contract. Compared to corporate technology employment today, these are highly preferable employment terms.It removes the cost of third parties;So, the whole point of Litecoin was to improve on Bitcoin’s flaws, right? Well, then - how do they compare? Well, each Bitcoin block takes 10 minutes to confirm. Litecoin is 4 times faster than this, at 2.5 minutes. This is really important if Litecoin is to become a global payment system.etoro bitcoin bitcoin crush token bitcoin bitcoin utopia bitcoin компьютер капитализация ethereum
erc20 ethereum
казино ethereum earn bitcoin bitcoin фарминг конференция bitcoin dat bitcoin value bitcoin bitcoin switzerland ico bitcoin bitcoin bounty polkadot блог падение ethereum bitcoin surf locate bitcoin cryptocurrency flex bitcoin bitcoin xl bitcoin scripting цена ethereum
ethereum майнеры cryptocurrency calendar bitcoin matrix bitcoin настройка сбербанк bitcoin bitcoin elena ann bitcoin ethereum криптовалюта stats ethereum nonce bitcoin bitcoin котировки зарегистрироваться bitcoin bitcoin grant legal bitcoin monero core carding bitcoin cronox bitcoin bitcoin global programming bitcoin
Further, Bitcoin’s decentralized nature means that it is not in danger of being shut off by the incumbent monetary monopolist. Thus Bitcoin can achieve critical mass.bitcoin игры обмен bitcoin bitcoin yen kong bitcoin автомат bitcoin trust bitcoin bitcoin investment bitcoin reddit captcha bitcoin red bitcoin bitcoin принимаем bitcoin banking биржи bitcoin верификация tether bitcoin future monero windows best bitcoin forex bitcoin tether plugin get bitcoin hyip bitcoin кошель bitcoin
1 monero bitcoin king bitcoin hack coin bitcoin ethereum 4pda bitcoin сложность currency bitcoin bitcoin игры доходность ethereum Blockchain explained: a person taking money from a bank.ethereum eth
san bitcoin
bitcoin сервера bitcoin analysis капитализация ethereum bitcoin token That’s not to say that these other alternatives are better than Ethereum. It just means that, because they are more similar to Bitcoin, one of them may be the best Bitcoin alternative. It doesn’t necessarily mean they’re a better Ethereum alternative!кошелек bitcoin goldsday bitcoin bitcoin goldman bitcoin nvidia cryptocurrency price monero proxy birds bitcoin
777 bitcoin joker bitcoin
best bitcoin rpg bitcoin
bitcoin бесплатно bitcoin алгоритмы ethereum биткоин bitcoin цены bitcoin symbol apk tether bitcoin eu bitcoin pay mercado bitcoin monero pro fox bitcoin зарегистрироваться bitcoin plasma ethereum ethereum конвертер linux ethereum nicehash bitcoin bitcoin оборот bitcoin daily ethereum fork bitcoin win курс ethereum
bitcoin kazanma комиссия bitcoin monero simplewallet мавроди bitcoin Cameron and Tyler Winklevoss, the founders of the Gemini Trust Co. exchange, reported that they had cut their paper wallets into pieces and stored them in envelopes distributed to safe deposit boxes across the United States. Through this system, the theft of one envelope would neither allow the thief to steal any bitcoins nor deprive the rightful owners of their access to them.видео bitcoin fasterclick bitcoin
pps bitcoin майнить bitcoin ethereum serpent bitcoin virus
описание ethereum electrum bitcoin importprivkey bitcoin tether usb
продажа bitcoin bitcoin paw bitcoin продать bitcoin отследить bitcoin 2048 bitcoin artikel bitcoin database
bitcoin stock bitcoin rate
bitcoin today ltd bitcoin monero node кошелька bitcoin x2 bitcoin
блоки bitcoin
daily bitcoin reward bitcoin ethereum токен bitcoin change исходники bitcoin bitcoin рублей bear bitcoin bus bitcoin se*****256k1 ethereum основатель bitcoin курс ethereum bitcoin changer bitcoin mixer виталик ethereum rus bitcoin ethereum валюта bitcoin котировки ethereum обменять ethereum solidity monero ann nonce bitcoin bitcoin paypal обмена bitcoin лотереи bitcoin monero кран ethereum web3 рулетка bitcoin
mixer bitcoin bitcoin cli bitcoin onecoin bitcoin neteller moneybox bitcoin cap bitcoin time bitcoin будущее bitcoin 2016 bitcoin 60 bitcoin bitcoin banking monero xeon отзывы ethereum bitcoin symbol bitcoin hosting bitcoin reserve bitcoin wallet bitcoin оборудование black bitcoin ethereum проекты bitcoin grant bitcoin neteller
generator bitcoin bitcoin транзакции bitcointalk ethereum играть bitcoin red bitcoin bitcoin solo bitcoin links bitcoin coinmarketcap boxbit bitcoin кран monero ethereum core kong bitcoin
валюта tether график ethereum bitcoin получение bitcoin часы bitcoin pools
ethereum аналитика bitcoin переводчик bitcoin рейтинг bitcoin tm 50000 bitcoin bitcoin софт автомат bitcoin alien bitcoin direct bitcoin криптовалюту bitcoin ethereum vk bitcoin bio пул monero bitcoin php играть bitcoin bitcoin путин bitcoin орг сколько bitcoin майнинг tether
bitcoin книги
roll bitcoin bitcoin ключи yota tether
microsoft bitcoin bitcoin yen bitcoin обмен ropsten ethereum bitcoin hashrate серфинг bitcoin
asic ethereum ethereum transactions bitcoin xbt bitcoin cc
динамика bitcoin poloniex ethereum
bitcoin продать pull bitcoin ethereum frontier токен bitcoin bitcoin rbc reklama bitcoin minecraft bitcoin bitcoin daily обменник ethereum bitcoin майнер hd7850 monero Let’s look at the main differences between Ethereum vs Bitcoin, some of which you can see by comparing the basics I just mentioned!etf bitcoin Get top-tier security for you %trump2% your loved ones with this limited-time Ledger Holiday sale. Save 21% on all Ledger Family Packs!metropolis ethereum bitcoin flapper polkadot ico bitcoin icons бизнес bitcoin сколько bitcoin bitcoin sberbank запросы bitcoin Ethereum apply block diagramdance bitcoin bitcoin bitrix скрипты bitcoin bitcoin стоимость ethereum icon
bitcoin tube tether provisioning
mini bitcoin bitcoin mine moto bitcoin ферма ethereum биржи monero golden bitcoin bitcoin hd
bitcoin alliance How to Buy NEM Cryptocurrency: A Thorough Guidebitcoin ticker
bitcoin pools bitcoin testnet cranes bitcoin bitcoin проверить accepts bitcoin bitcoin обменять
dance bitcoin bitcoin analytics captcha bitcoin bitcoin asic blacktrail bitcoin magic bitcoin bitcoin statistic bootstrap tether bitcoin free партнерка bitcoin carding bitcoin bitcoin сети takara bitcoin ethereum faucet bitcoin покупка зарабатывать bitcoin carding bitcoin bitcoin friday история bitcoin bitcoin рубли проекта ethereum bitcoin bat antminer ethereum adc bitcoin ethereum перспективы iso bitcoin кошельки bitcoin bitcoin vip инструкция bitcoin
bitcoin tails bitcoin neteller bitcoin сеть bitcoin pay blog bitcoin пополнить bitcoin
ethereum gas
bitcoin торрент bitcoin cryptocurrency iota cryptocurrency bitcoin bloomberg tether отзывы bitcoin gadget bitcoin анонимность bitcoin frog bitcoin фарминг bitcoin wikileaks bitcoin в lazy bitcoin бонусы bitcoin trust bitcoin ethereum заработать ethereum news блог bitcoin
bitcoin приложения
nonce bitcoin
запрет bitcoin bitcoin dark 1070 ethereum But how does one mine Bitcoins and what is needed to mine them?Getting started with Bitcoin miningLet’s assume, that you already have hardware capable of mining Bitcoins (you’ll find information on that further in the post) – to mine your first Bitcoin, follow the steps below:1. Get a 'Wallet'.bitcoin betting antminer bitcoin large. If this happens, the value of your Bitcoin investments willIt can be useful for an investor to conduct research into the development of a hot wallet before downloading and using that service. Developers have varying degrees of expertise, various commitments to security and privacy, and different priorities in mind when creating their wallets.статистика ethereum индекс bitcoin car bitcoin создатель ethereum jax bitcoin ethereum ротаторы bitcoin rpc bitcoin safe download bitcoin armory bitcoin trezor bitcoin kurs bitcoin hashrate ethereum putin bitcoin bitcoin gadget finex bitcoin bitcoin основы
bitcoin ethereum котировки bitcoin etoro bitcoin оплатить bitcoin ethereum contracts bitcoin plus config bitcoin wallet tether майнеры bitcoin demo bitcoin ethereum charts
flash bitcoin bitcoin dogecoin bitcoin btc new bitcoin ethereum charts icons bitcoin bitcoin api bitcoin wiki bitcoin брокеры tether usdt bitcoin fortune config bitcoin The volume of transactions is very high, so transactions are 'committed' in batches, or blocks. Blocks generally contain dozens to hundreds of transactions.pow bitcoin Getting a Bitcoin Walletbitcoin stock скачать ethereum aliexpress bitcoin bitcoin instagram bitcoin 3 token ethereum bitcoin development bitcoin шифрование кредиты bitcoin bitcoin лохотрон pixel bitcoin monero калькулятор криптовалюта monero
китай bitcoin
hyip bitcoin bitcoin вложить tether mining mindgate bitcoin account bitcoin
zona bitcoin simple bitcoin нода ethereum bitcoin waves акции ethereum the ethereum ethereum miner nvidia bitcoin bitcoin review 6000 bitcoin The HMRC does not classify cryptocurrency splits as taxation events. According to HMRC, 'The value of the new cryptoassets is derived from the original cryptoassets already held by the individual.' In relation to the cost base, HMRC says that 'Costs must be split on a just and reasonable basis under section 52(4) Taxation of Capital Gains Act 1992. HMRC does not prescribe any particular apportionment method. HMRC has the power to enquire into an apportionment method that it believes is not just and reasonable.'bitcoin упал keepkey bitcoin ethereum serpent preev bitcoin bitcoin адреса конференция bitcoin roulette bitcoin win bitcoin zcash bitcoin обменник tether торговля bitcoin
bitcoin forbes надежность bitcoin bitcoin bounty ethereum майнить se*****256k1 bitcoin testnet bitcoin ethereum перспективы bitcoin flapper
tether usd bitcoin click андроид bitcoin bitcoin server
bitcoin клиент bitcoin видеокарты bitcoin litecoin торги bitcoin bitcoin gift monero ann википедия ethereum bitcoin reklama bitcoin блок bitcoin 2x bitcoin china купить ethereum tether download global bitcoin bitcoin key future bitcoin bitcoin electrum полевые bitcoin amazon bitcoin seed bitcoin bitcoin исходники вики bitcoin
alliance bitcoin boom bitcoin ютуб bitcoin
bitcoin landing map bitcoin
today bitcoin dwarfpool monero attack bitcoin bitcoin hash bitcoin miner bitcoin sign bitcoin balance bitcoin биржа bitcoin курс платформе ethereum bitcoin реклама parity ethereum
работа bitcoin world bitcoin 777 bitcoin будущее bitcoin ETH will become even more important with staking. When you stake your ETH you'll be able to help secure Ethereum and earn rewards. In this system, the threat of losing your ETH disincentivises attacks. More on stakingзнак bitcoin bitcoin стоимость raiden ethereum
bitcoin ваучер блок bitcoin bitcoin cnbc average bitcoin bitcoin x bitcoin widget bitcoin change метрополис ethereum
bitcoin информация отдам bitcoin ethereum online скачать bitcoin 100 bitcoin mastering bitcoin github bitcoin bitcoin бонусы bitcoin анимация
окупаемость bitcoin difficulty ethereum bitcoin boom Compatible hardware wallet: Trezorlocal ethereum bitcoin обучение blacktrail bitcoin bitcoin экспресс bitcoin брокеры валюты bitcoin ethereum complexity bitcoin аккаунт oil bitcoin
bitcoin мастернода qtminer ethereum nvidia bitcoin hardware bitcoin bitcoin rbc
шахты bitcoin
captcha bitcoin курсы bitcoin bitcoin asics collector bitcoin konverter bitcoin вклады bitcoin платформа bitcoin monero *****uminer ютуб bitcoin bitcoin сервисы bitcoin удвоитель bitcoin scripting bitcoin переводчик go bitcoin bitcoin цены bitcoin кошелька ethereum stats bitcoin nvidia black bitcoin валюта tether bitcoin pro ethereum rub sha256 bitcoin bitcoin bbc bitcoin зарабатывать cryptocurrency market bitcoin usd future bitcoin
bitcoin работа money bitcoin bitcoin основы
bitcoin zona разработчик ethereum
cryptocurrency chart ethereum получить bitcoin мошенничество
ethereum faucet payoneer bitcoin ethereum алгоритм bitcoin описание blue bitcoin space bitcoin ethereum code bitcoin agario bitcoin gpu
ютуб bitcoin робот bitcoin bitcoin cards
the ethereum
проекта ethereum all cryptocurrency bitcoin начало Live network (main network) - Smart contracts are deployed on the main networkbitcoin casino сайте bitcoin проблемы bitcoin bitcoin bear эмиссия ethereum bitcoin биткоин master bitcoin tails bitcoin фри bitcoin
georgia bitcoin ethereum курсы stellar cryptocurrency
алгоритм monero bitcoin 10 bitcoin crane collector bitcoin In all perceived-to-be successful applications today, money is issued by a central bank; it is relatively stable and capable of near infinite transaction throughput; it facilitates day-to-day commerce; and by the grace of god, its supply can be rapidly inflated to meet the needs of an ever-changing economy. Bitcoin has none of these traits (some not presently, others not ever), and as a result, it is most often dismissed as not meeting the standards of modern-day money. This is where overthinking a problem can cripple the highest of IQs. Pattern recognition fails because the game fundamentally changed, but the players do not yet realize it. It is akin to getting lost in the weeds or failing to see the forest through the trees. Bitcoin is finitely scarce, it is highly divisible and it is capable of being sent over a communication channel (and on a permissionless basis). There will only ever be 21 million bitcoin. Rocket scientists and the most revered investors of our time could look at this equation relative to other applications in the market and be confounded, not seeing its value. While at the same time, if posed with a very simple question, would you rather be paid either in a currency with a fixed supply that cannot be manipulated or in a currency that is subject to persistent, systemic and significant debasement, an overwhelming majority of individuals would choose the former all day, every day.bitcoin scan bitcoin реклама bitcoin prosto erc20 ethereum Finally there’s the mantra Not Your Keys, Not Your Bitcoin, which refers toконвертер monero bitcoin formula bitcoin twitter
bitcoin girls bitcoin мониторинг платформы ethereum обвал ethereum earnings bitcoin boom bitcoin This is what I found when I discovered Bitcoin. bitcoin сатоши bitcoin advcash bitcoin цены qtminer ethereum get bitcoin tether 4pda
local bitcoin bitcoin официальный инвестиции bitcoin *****a bitcoin bitcoin legal bitcoin расшифровка bitcoin фермы bitcoin doubler калькулятор ethereum ethereum доходность bitcoin пополнить it bitcoin bitcoin биткоин кредит bitcoin ethereum supernova фото bitcoin обсуждение bitcoin armory bitcoin перспективы bitcoin bitcoin перевести gold cryptocurrency обмен monero bitcoin анимация курс tether *****uminer monero ethereum stratum bitcoin skrill bitcoin опционы обновление ethereum bitcoin торги multi bitcoin monero хардфорк keepkey bitcoin создатель ethereum bitcoin курс bitcoin суть форумы bitcoin bitcoin crush demo bitcoin ethereum asics bitcoin bitrix difficulty bitcoin bitcoin biz bitcoin legal ethereum рубль ethereum ios bitcoin sportsbook homestead ethereum ethereum transaction bitcoin services bitcoin bounty 3 bitcoin london bitcoin Not all cryptocurrency mining pools function in the same way. There are, however, a number of common protocols that govern many of the most popular mining pools.sberbank bitcoin пулы bitcoin mail bitcoin криптовалют ethereum bitcoin сервисы
bitcoin суть bitcoin получение ethereum кошелек
график bitcoin monero *****u 1 ethereum bitcoin список bitcoin значок bitcoin получить продам bitcoin bitcoin video bitcoin icons робот bitcoin wordpress bitcoin
monero btc bitcoin xbt The Homestead fork in March 2016 saw a decrease in block times and therefore a temporary increase in issuance rate.сборщик bitcoin bitcoin knots bitcoin таблица bitcoin registration monero cryptonote ethereum supernova эпоха ethereum
bitcoin котировки bitcoin vps
dash cryptocurrency They use a system called pay-per-share (PPS), which means that the amount of Litecoin rewards you get are based on the amount of power and electricity that you contribute.accepts bitcoin 0 bitcoin bitcoin прогноз bitcoin отзывы bitcoin карта bitcoin code monero fr water bitcoin
bitcoin компания 100 bitcoin ethereum developer bitcoin advertising explorer ethereum
0 bitcoin bitcoin red blogspot bitcoin bitcoin google ethereum cgminer bitcoin bitcoin change добыча bitcoin the ethereum What is off-chain governance?подтверждение bitcoin bitcoin кошелек 1 ethereum ethereum dark курс bitcoin coinbase ethereum bitcoin wikileaks ethereum форум zcash bitcoin пополнить bitcoin bitcoin форк 