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.
bitcoin multibit
bitcoin rotators
windows bitcoin bitcoin live магазин bitcoin bitcoin icon flex bitcoin gift bitcoin bitcoin алгоритм loco bitcoin wifi tether mining bitcoin торрент bitcoin bitcoin key bitcoin config
bitcoin live bitcoin wiki usdt tether bitcoin брокеры bitcoin payza microsoft ethereum
bitcoin earn
rise cryptocurrency bitcoin обменники bitcoin 2048 hashrate bitcoin bitcoin 4000 android tether mikrotik bitcoin bitcoin fire
dag ethereum british bitcoin эфир bitcoin film bitcoin coinmarketcap bitcoin
монет bitcoin bitcoin json q bitcoin bitcoin 50000 bitcoin links testnet bitcoin tether верификация bitcoin видеокарты monero benchmark bitcoin котировки
разделение ethereum dapps ethereum bitcoin trend
store bitcoin testnet bitcoin bitcoin cudaminer fx bitcoin новости monero bitcoin 5 форумы bitcoin monero 1060 bitcoin бонусы p2pool monero мониторинг bitcoin by bitcoin bitcoin io пополнить bitcoin bitcoin com история ethereum bitcoin monkey bitcoin daily
bitcoin local bitcoin сша Bitcoin Mining Hardware: How to Choose the Best One3. Five Industries that Blockchain will DisruptThere is concern that cryptocurrencies like Bitcoin are not rooted in any material goods. Some research, however, has identified that the cost of producing a Bitcoin, which requires an increasingly large amount of energy, is directly related to its market price.bitcoin comprar bitcoin multisig bitcoin бизнес monero simplewallet FACEBOOK4pda bitcoin
Blockchain has come to the forefront of many discussions because of its role in distributing cryptocurrencies like bitcoin. In the long run, these digital cash transactions may become a small part of blockchain technology's overall footprint and the way assets are transferred online.0 bitcoin bitcoin all balance bitcoin bitcoin платформа wikileaks bitcoin ethereum dark 2 bitcoin arbitrage bitcoin
clockworkmod tether bitcoin instant
bitcoin книги bitcoin msigna bitcoin mmgp асик ethereum пожертвование bitcoin cryptocurrency law bitcoin background bitcoin roll bitcoin symbol bitcoin автоматом apple bitcoin ethereum supernova верификация tether bitcoin electrum
check bitcoin kraken bitcoin plasma ethereum обновление ethereum bitcoin оборот ethereum myetherwallet заработать monero bitcoin background bitcoin часы bitcoin abc bitcoin s casascius bitcoin tails bitcoin tether download bitcoin code stock bitcoin bitcoin weekend nodes bitcoin bitcoin видео
balance bitcoin bitcoin crane bitcoin видеокарта grayscale bitcoin bitcoin github usb bitcoin сайте bitcoin android tether tether скачать bitcoin dogecoin blockchain ethereum golden bitcoin
nonce bitcoin прогноз bitcoin The lower-left quadrant:bitcoin virus bitcoin матрица
nonce bitcoin
bitcoin сервисы bank bitcoin bitcoin official курс tether bitcoin зебра bitcoin grant
шахта bitcoin bitcoin froggy monero bitcoin anonymous bitcoin pay ethereum supernova monero cpuminer bitcoin торрент автомат bitcoin usd bitcoin free ethereum roulette bitcoin bitcoin explorer bitcoin analytics вывод ethereum
клиент bitcoin bitcoin оплата monero ethereum bitcoin bitcoin 1000
monero simplewallet
cryptonight monero bitcoin рухнул bitcoin monkey uk bitcoin bitcoin trader bitcoin курсы converter bitcoin bitcoin переводчик wallet tether bitcoin timer bitcoin usa bitcoin greenaddress blake bitcoin top cryptocurrency alien bitcoin bitcoin fork takara bitcoin bitcoin войти bitcoin take It's also important to keep in mind that the bitcoin network itself is likely to change significantly between now and then. Considering how much has happened to bitcoin in just a decade, new protocols, new methods of recording and processing transactions, and any number of other factors may impact the mining process.Mining Poolbitcoin coingecko удвоитель bitcoin tether программа краны monero monero 1060 cryptocurrency forum
блокчейна ethereum bitcoin хабрахабр мастернода bitcoin monero algorithm bitcoin анонимность paidbooks bitcoin bitcoin куплю bitcoin alien lucky bitcoin инструкция bitcoin android tether bitcoin транзакция bitcoin moneybox ethereum статистика ecopayz bitcoin qiwi bitcoin bitcoin телефон bitcoin machines статистика ethereum pos ethereum bitcoin wm bank bitcoin bitcoin аналоги bus bitcoin bitcoin fasttech vk bitcoin cryptocurrency mining bitcoin bux платформа bitcoin tether комиссии bitcoin cz crococoin bitcoin ads bitcoin monero logo bitcoin airbit bitcoin лого bitcoin коллектор bitcoin заработок ava bitcoin
bitcoin dice
bitcoin биржи mac bitcoin forecast bitcoin
matrix bitcoin bitcoin презентация
миксер bitcoin ethereum blockchain конвектор bitcoin
bitcoin advcash bitcoin new
ethereum charts бесплатные bitcoin
email bitcoin bitcoin транзакция ethereum blockchain ethereum rotator ethereum russia bitcoin trojan андроид bitcoin bitcoin paypal
кликер bitcoin е bitcoin cryptocurrency charts ethereum browser second bitcoin boom bitcoin water bitcoin автомат bitcoin bitcoin exe monero вывод конференция bitcoin tether обменник cryptocurrency faucet earn bitcoin bitcoin перевод email bitcoin
bitcoin отзывы
майнить bitcoin pinktussy bitcoin
bitcoin cloud миллионер bitcoin
python bitcoin ethereum usd bitcoin check 1070 ethereum bitcoin stealer panda bitcoin bitcoin markets монеты bitcoin форум bitcoin monero minergate
bitcoin ммвб графики bitcoin monero nvidia bitcoin server ethereum wiki bitcoin реклама
60 bitcoin
bitcoin цена tether limited настройка monero bitcoin программа
ethereum калькулятор магазины bitcoin bitcoin обменник bitcoin knots ethereum заработок monero spelunker взлом bitcoin рубли bitcoin bitcoin лайткоин dwarfpool monero bestexchange bitcoin micro bitcoin konvert bitcoin смесители bitcoin
faucets bitcoin wikileaks bitcoin blue bitcoin
bitcoin адреса r bitcoin polkadot stingray bitcoin рублях казино bitcoin bitcoin fpga bitcoin office ethereum майнить bitcoin пицца bitcoin государство приложение tether ethereum описание миксер bitcoin bitcoin life bitcoin обменник byzantium ethereum запрет bitcoin ethereum dao get bitcoin bitcoin scrypt iso bitcoin planet bitcoin bitcoin видеокарты bitcoin матрица bitcoin carding bitcoin casino
roll bitcoin bitcoin калькулятор habrahabr bitcoin bitcoin рейтинг прогноз bitcoin ethereum russia
bitcoin token widget bitcoin bitcoin 50 monero node is bitcoin
bitcoin doubler monero coin bitcoin code cryptocurrency tech chaindata ethereum бизнес bitcoin flash bitcoin
tcc bitcoin bitcoin analysis bitcoin exchange difficulty bitcoin solo bitcoin bitcoin роботы bitcoin описание bitcoin multiplier pplns monero platinum bitcoin service bitcoin bazar bitcoin cryptocurrency magazine bitcoin withdraw кошелька ethereum калькулятор monero суть bitcoin
reverse tether bitcoin 3 bitcoin часы bye bitcoin exchange monero wei ethereum ethereum видеокарты
видеокарты bitcoin bitcoin golden bitcoin store bitcoin zebra bitcoin окупаемость bitcoin clouding bitcoin alliance ethereum chaindata bitcoin это Bitcoin they do not provide censorship-resistant guarantees. Once secured by a miner, a Bitcoinфонд ethereum заработок bitcoin
bitcoin pizza windows bitcoin фермы bitcoin demo bitcoin bitcoin plus bitcoin keywords bitcoin фарминг qtminer ethereum автокран bitcoin bitcoin fun
bitcoin зарегистрироваться bitcoin телефон
So, with a decentralized app like Peepeth, once you publish a message to the blockchain, it can’t be erased, not even by the company that built the platform. It will live on Ethereum forever.bitcoin бонусы bitcoin forex bitcoin china nova bitcoin ethereum 4pda установка bitcoin кошелек monero cubits bitcoin bitcoin balance
bitcoin 1070 telegram bitcoin bitcoin анализ bitcoin проблемы bitcoin anonymous bitcoin настройка bitcoin шрифт
decred cryptocurrency all cryptocurrency bitcoin cny accepts bitcoin зарегистрироваться bitcoin carding bitcoin bitcoin автомат masternode bitcoin bitcoin reddit продам ethereum bitcoin анонимность bitcoin market dark bitcoin bitcoin coinmarketcap cryptocurrency charts monero hardware bitcoin 2010
(Euro address)bitcoin обвал monero криптовалюта video bitcoin fenix bitcoin bitcoin бесплатно nonce bitcoin bitcoin котировки зарегистрироваться bitcoin bitcoin grant legal bitcoin monero core carding bitcoin cronox bitcoin bitcoin global ethereum логотип bitmakler ethereum
розыгрыш bitcoin мастернода ethereum
bitcoinwisdom ethereum фарминг bitcoin ethereum алгоритмы ethereum калькулятор технология bitcoin вывод bitcoin shot bitcoin mining cryptocurrency tether usb вход bitcoin bitcoin китай bitcoin forum
bitcoin pdf bitcoin tx casascius bitcoin bye bitcoin 16 bitcoin bitcoin index nova bitcoin bitcoin 4096
bitcoin компьютер bitcoin платформа clicker bitcoin carding bitcoin куплю ethereum javascript bitcoin As far as mediums of exchange go, Bitcoin is actually quite economical of resources, compared to others.bitcoin майнер For example, if two users want to regularly send funds to each other quickly and easily they can set up a channel by creating a multi-signature (multisig) wallet and adding funds. From then on they can carry out an unlimited amount of transactions backed by these funds. Essentially, these are off-chain transactions recorded using a type of digital ledger protected by a time clock. Both parties digitally sign and update their version after each transaction – commonly done by scanning a QR code. The actual redistribution of the original funds in the wallet only happens on the blockchain itself when the channel is closed, based on the final balance sheet.ферма bitcoin Exchangeмайн ethereum bitcoin lite click bitcoin шахты bitcoin vizit bitcoin elysium bitcoin cgminer monero bitcoin usa курс ethereum шрифт bitcoin darkcoin bitcoin
разработчик bitcoin bitcoin generate up bitcoin bitcoin nachrichten доходность ethereum gadget bitcoin gadget bitcoin Progress is accelerating on more advanced solutions such as lightning, with transactions being sent on testnets (as well as some using real bitcoin). And the potential of Schnorr signatures is attracting increasing attention, with several proposals working on detailing functionality and integration.faucet ethereum
компиляция bitcoin ethereum bonus кошельки bitcoin monero алгоритм usdt tether новые bitcoin monero майнить secp256k1 ethereum cryptocurrency mail bitcoin maining bitcoin bitcoin script TABLE OF CONTENTSEthereum vs Bitcoin: The Basicsbitcoin ann таблица bitcoin
создать bitcoin bitcoin kurs bitcoin играть bitcoin virus ethereum pools bitcoin картинки биржи bitcoin
bitcoin trader boxbit bitcoin
monero algorithm bitcoin center часы bitcoin nvidia bitcoin получить bitcoin эпоха ethereum 20 bitcoin raiden ethereum msigna bitcoin
bitcoin msigna исходники bitcoin second bitcoin
boom bitcoin обменники bitcoin blitz bitcoin free monero bitcoin best roll bitcoin bitcoin hub
bitcoin card bitcoin maps майнер monero ethereum coin bitcoin проблемы
birds bitcoin ubuntu bitcoin payoneer bitcoin обвал ethereum бизнес bitcoin график monero
drip bitcoin monero news
bitcoin анимация dash cryptocurrency
bitcoin s окупаемость bitcoin обзор bitcoin bitcoin пирамида форумы bitcoin tera bitcoin
bitcoin ebay bitcoin map ethereum сайт bitcoin bcn bitcoin bitminer bitcoin список bitcoin ann bitcoin box ethereum кошельки таблица bitcoin bitcoin system bitcoin принцип майнинг bitcoin программа tether In the case of disagreement, stakeholders have two options. First, they can try and convince the other stakeholders to act in favor of their side. If they can’t reach consensus, they have the ability to hard fork the protocol and keep or change features they think are necessary. From there, both chains have to compete for brand, users, developer mindshare, and hash power.WHAT IS ETHEREUM MINING?abc bitcoin ethereum faucet bitcoin rotator bitcoin kz
cryptocurrency wallet bitcoin игры
blogspot bitcoin
mine ethereum мавроди bitcoin monero usd X-Hashcash: 1:52:380119:calvin@comics.net:::9B760005E92F0DAEHashes. These one-way cryptographic functions are what make it possible for nodes to verify the legitimacy of cryptocurrency mining transactions. A hash is an integral component of every block in the blockchain. A hash is generated by combining the header data from the previous blockchain block with a nonce.bitcoin доходность принимаем bitcoin Here are some reasons why Ethereum could be a strong long-term investment.bitcoin pools bitcoin card flash bitcoin bitcoin софт lealana bitcoin ethereum купить
бонус bitcoin adbc bitcoin bitcoin ethereum clame bitcoin bitcoin rotator пулы bitcoin
bitcoin miner обмена bitcoin bitcoin background bitcoin mine fields bitcoin fork ethereum bitcoin reward aliexpress bitcoin bitcoin airbit
bitcoin wmz bitcoin обналичить ethereum проекты dwarfpool monero дешевеет bitcoin bitcoin блок bitcoin биткоин bitcoin rt bonus bitcoin
bitcoin xl
tcc bitcoin pool bitcoin bitcoin pools raiden ethereum bio bitcoin nodes bitcoin отзыв bitcoin auction bitcoin ethereum price bitcoin multiplier bitcoin song bitcoin vpn flypool monero water bitcoin bitcoin анализ обучение bitcoin A blockchain is the decentralised, public ledger or list of a cryptocurrency’s transactions. Completed blocks, comprised of the latest transactions, are recorded and added to the blockchain. They are stored in chronological order as an open, permanent and verifiable record. A peer-to-peer network of market participants manage blockchains, and they follow a set protocol for validating new blocks. Each ‘node’ or computer connected to the network automatically downloads a copy of the blockchain. This allows everyone to track transactions without the need for central record keeping. bitcoin me cryptocurrency market bitcoin venezuela Open-source development is currently underway for a major upgrade to Ethereum known as Ethereum 2.0 or Eth2. The main purpose of the upgrade is to increase transaction throughput for the network from the current of about 15 transactions per second to up to tens of thousands of transactions per second.tether ico создатель bitcoin bitcoin обменник Litecoin cloud mining guide: everything you need to know to start cloud mining Litecoin. Read this guide %trump2% master Litecoin cloud mining like a pro!bitcoin xl widget bitcoin iota cryptocurrency
konvert bitcoin bitcoin заработок tp tether monero blockchain bitcoin pools ethereum сайт bitcoin iq
надежность bitcoin 1000 bitcoin взлом bitcoin обсуждение bitcoin lealana bitcoin цены bitcoin bitcoin валюта bitcoin atm cryptocurrency forum bitcoin шахты транзакция bitcoin programming bitcoin bitcoin торги bitcoin автомат
master bitcoin collector bitcoin
bitcointalk monero 1080 ethereum bitcoin golden mac bitcoin ethereum кошелек bitcoin jp pps bitcoin bitcoin eth ico monero обменник ethereum майнить bitcoin ethereum platform js bitcoin bitcoin аккаунт ethereum форум laundering bitcoin bitcoin qiwi cryptocurrency price bitcoin реклама перевести bitcoin bitcoin auto 999 bitcoin lurkmore bitcoin bit bitcoin транзакции bitcoin bitcoin украина daemon bitcoin bitcoin nodes checker bitcoin blender bitcoin
all cryptocurrency monero minergate bitcoin установка get bitcoin exchanges bitcoin pplns monero проблемы bitcoin динамика bitcoin обновление ethereum bitcoin atm monero fr bitcoin stealer legal bitcoin tether android bitcoin упал bitcoin easy bitcoin лохотрон importprivkey bitcoin debian bitcoin truffle ethereum advcash bitcoin bitcoin cracker How to Buy ZCash: Where and HowTransactions are cryptographically signed instructions from accounts. There are two types of transactions: those which result in message calls and those which result in contract creation.monero ico bitcoin primedice Altcoins have the same problem, though not in such an obvious way. Usually the creator is the de facto dictator for the coin and can do the same things that a government can. Taxes (dev tax, storage tax, etc), inflation, picking winners and losers (DAO, proof-of-X change, etc) are often decided by the creators. As a holder of an altcoin, you have to trust not just the current leader, but all future leaders of the coin to not confiscate, tax away or inflate away your coins. In other words, altcoins and ICOs are not qualitatively different than fiat. In altcoin and ICO-land, you are not sovereign over your own coins!bitcoin хабрахабр ethereum charts