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.
email bitcoin
rus bitcoin bitcoin options сбор bitcoin альпари bitcoin bitcoin casino bitcoin луна
vector bitcoin earn bitcoin ethereum аналитика биржа bitcoin rise cryptocurrency ethereum pools ethereum coin bitcoin bit bitcoin purchase адрес bitcoin ethereum акции серфинг bitcoin bitcoin баланс bitcoin click лотерея bitcoin эфир bitcoin bitcoin курс ethereum получить bitcoin adress bitcoin рублях
bitcoin ваучер bitcoin forbes bitcoin bitcointalk ethereum прогнозы bitcoin шифрование bitcoin mining анализ bitcoin bitcoin ann bitcoin genesis инвестирование bitcoin bitcoin click jaxx bitcoin ethereum stratum bitcoin broker Historically, precious metals were the best monetary technologies in terms of money’s five critical traits: divisibility, durability, portability, recognizability, and scarcity. Among the monetary metals, gold was relatively the most scarce, and therefore it outcompeted others in the marketplace as it was a more sound store of value. In the ascension of gold as money, it was as if free market dynamics were trying to zero-in on a sufficiently divisible, durable, portable, and recognizable monetary technology that was also absolutely scarce (strong arguments for this may be found by studying the Eurodollar system). Free markets are distributed computing systems that zero-in on the most useful prices and technologies based on the prevailing demands of people and the available supplies of capital: they constantly assimilate all of mankind’s intersubjective perspectives on the world within the bounds of objective reality to produce our best approximations of truth. In this context, verifiable scarcity is the best proxy for the truthfulness of money: assurance that it will not be debased over time.The transaction history of each bitcoin is recorded on the blockchain. It allows identifying bitcoin units that may be linked to certain events, like fraud, gambling, or theft, which paves the way for blocking, suspending, or closing accounts that hold such units. Imagine receiving a few bitcoins today that were previously used for gambling, and they are banned in the future, leading to a loss.Bitcoin has been largely characterized as a digital currency system built in protest to Central Banking. This characterization misapprehends the actual motivation for building a private currency system, which is to abscond from what is perceived as a corporate-dominated, Wall Street-backed world of full-time employment, technical debt, moral hazards, immoral work imperatives, and surveillance-ridden, ad-supported networks that collect and profile users.таблица bitcoin tether tools bitcoin zona dollar bitcoin
ethereum asic 100 bitcoin я bitcoin bitcoin land bitcoin asics rate bitcoin
bitcoin вложения bitcoin investing etoro bitcoin bitcoin автосборщик
развод bitcoin node bitcoin bitcoin игры пожертвование bitcoin bitcoin favicon bitcoin открыть bitcoin bitcointalk ethereum 1070 bitcoin описание кошель bitcoin ethereum видеокарты bitcoin pdf pixel bitcoin easy bitcoin bitcoin school ethereum price bitcoin withdrawal daily bitcoin bitcoin node bitcoin unlimited bitcoin super status bitcoin bitcoin skrill ethereum проект bitcoin code bitcoin agario bitcoin galaxy iobit bitcoin мастернода bitcoin ad bitcoin wordpress bitcoin cold bitcoin ethereum логотип short bitcoin bitcoin apk bitcoin mainer bitcoin average bitcoin покупка phoenix bitcoin арбитраж bitcoin adc bitcoin взлом bitcoin bitcoin conference надежность bitcoin buying bitcoin bitcoin start брокеры bitcoin bitcoin 4096 trezor bitcoin cryptocurrency gold faucet bitcoin bitcoin click tether bitcointalk tether комиссии rate bitcoin create bitcoin bitcoin автоматический monero windows ethereum usd bitcoin express bitcoin journal bitcoin компания bitcoin шифрование io tether web3 ethereum регистрация bitcoin пулы bitcoin
bitcoin скачать bitcoin paper roboforex bitcoin
ethereum api новый bitcoin
ethereum телеграмм cryptocurrency calendar кредиты bitcoin tether транскрипция ethereum mining bitcoin laundering monero fee bitcoin вконтакте брокеры bitcoin
bitcoin loan bitcoin dynamics
bitcoin кредиты bitcoin мерчант обменник tether bitcoin получить bitcoin double bitcoin free nodes bitcoin checker bitcoin токены ethereum форумы bitcoin асик ethereum майнер ethereum доходность ethereum терминал bitcoin nicehash bitcoin claim bitcoin bitcoin fpga wikipedia ethereum programming bitcoin bitcoin accepted
okpay bitcoin windows bitcoin 6000 bitcoin forecast bitcoin ethereum обмен список bitcoin
total cryptocurrency bitcoin конверт bitcoin pools ethereum pools карты bitcoin bitcoin frog
by bitcoin вклады bitcoin raiden ethereum bitcoin продать bitcoin cudaminer bitcoin zona будущее ethereum forum bitcoin fake bitcoin япония bitcoin лучшие bitcoin space bitcoin bitcoin q escrow bitcoin bitcoin land ethereum btc bitcoin настройка
fields bitcoin ethereum forks nanopool ethereum bitcoin traffic ethereum игра bitcoin data bitcoin pools настройка monero blender bitcoin bitcoin реклама blog bitcoin monero node alpari bitcoin
bitcoin код ethereum википедия перевести bitcoin асик ethereum hashrate bitcoin dark bitcoin ann monero
tails bitcoin
collector bitcoin bitcoin blue прогноз ethereum Ключевое слово ethereum myetherwallet film bitcoin mindgate bitcoin сборщик bitcoin bitcoin javascript bitcoin minecraft ethereum прогнозы pull bitcoin ethereum transactions mine ethereum ютуб bitcoin блоки bitcoin токен bitcoin виталий ethereum bus bitcoin уязвимости bitcoin ethereum forks bitcoin half okpay bitcoin ethereum mist котировки bitcoin ферма ethereum bitcoin значок майнинга bitcoin ethereum котировки ethereum доходность faucets bitcoin символ bitcoin bitcoin проверка доходность ethereum pow bitcoin tether addon bitcoin ethereum dao ethereum project ethereum халява bitcoin 1) 'Bitcoin is a Bubble'fire bitcoin bitcoin check
bitcoin base equihash bitcoin bitcoin депозит Telegram is not intended to bring revenue,segwit bitcoin There aren’t many options when it comes to choosing a Monero wallet. Hardware wallets (which are considered the safest) are now also available for Monero coins: they are supported by Ledger Nano X and Trezor Model T. These wallets are currently considered the safest ones in the market. ethereum валюта bitcoin png trust bitcoin
bitcoin 4pda график bitcoin ethereum ферма konvert bitcoin бот bitcoin переводчик bitcoin ethereum blockchain cryptocurrency reddit
ethereum farm konvertor bitcoin
bitcoin монета up bitcoin surf bitcoin monero *****u invest bitcoin отдам bitcoin ethereum habrahabr bitcoin значок x bitcoin bank bitcoin chaindata ethereum cryptocurrency это bitcoin haqida ethereum forks etoro bitcoin bitcoin co bitcoin компьютер bitcoin conveyor
faucet ethereum исходники bitcoin wechat bitcoin
zona bitcoin bazar bitcoin eth ethereum cudaminer bitcoin bitcoin новости de bitcoin динамика ethereum hack bitcoin bitcoin favicon bitcoin io
bitcoin airbit average bitcoin майнер bitcoin bitcoin команды ethereum coin котировка bitcoin bitcoin принимаем de bitcoin ethereum dao As an economic system, the rules for ether’s economy are a bit open-ended. While bitcoin has a hard cap of 21 million bitcoins, ether does not have a similar limit.protocol bitcoin monero новости ethereum russia bitcoin регистрации
криптовалюты bitcoin
bitcoin central шахты bitcoin bitcoin проблемы
bitcoin mainer обналичить bitcoin ethereum видеокарты galaxy bitcoin ninjatrader bitcoin index bitcoin ethereum russia биткоин bitcoin unconfirmed bitcoin bitcoin p2pool bitcoin otc golden bitcoin
bitcoin forum se*****256k1 bitcoin пример bitcoin bitcoin money пожертвование bitcoin explorer ethereum ethereum coins
bitcoin capitalization форки ethereum chain bitcoin bitcoin bounty bitcoin nodes 2018 bitcoin 1 ethereum обменник ethereum эмиссия bitcoin ethereum pools ads bitcoin supernova ethereum
bcn bitcoin mindgate bitcoin bitcoin nasdaq download tether new cryptocurrency api bitcoin
nicehash ethereum
майнер monero dog bitcoin
сборщик bitcoin bitcoin etherium little bitcoin ethereum vk reklama bitcoin direct bitcoin *****a bitcoin
ethereum forks ethereum перевод bitcoin explorer bitcoin laundering bitcoin wmx double bitcoin bitcoin generate протокол bitcoin
ethereum info bitcoin hashrate coinder bitcoin bitcoin anonymous red bitcoin bitcoin monkey usd bitcoin mini bitcoin litecoin bitcoin double bitcoin ethereum eth bitcoin терминалы bitcoin phoenix
bitcoin ledger bitcoin prune
bitcoin статья карты bitcoin Blockchain Certification Training Courseethereum mist card bitcoin bitcoin луна bitcoin покупка machine bitcoin bitcoin arbitrage кран bitcoin bitcoin сети calculator bitcoin This means that nobody can ever spend the same money twice! This can often be a big problem for standard banks and payment systems.bitcoin darkcoin vpn bitcoin bitcoin зебра flash bitcoin bitcoin bitminer ethereum валюта fake bitcoin банкомат bitcoin bitcoin заработок bitcoin virus ферма bitcoin red bitcoin
система bitcoin bitcoin super bitcoin system bitcoin пополнить bitcoin ann ethereum кошельки обновление ethereum bitcoin node bitcoin coins rate bitcoin bitcoin algorithm neo bitcoin bitcoin payoneer куплю ethereum georgia bitcoin bitcoin space apple bitcoin nodes bitcoin tether майнить bitcoin fork bitcoin терминал bitcoin count monero обмен bitcoin dogecoin отдам bitcoin calculator ethereum bitcoin заработать
карты bitcoin бот bitcoin fast bitcoin ethereum акции форки bitcoin – Gwern Branwen, Bitcoin is Worse Is Betterbitcoin maps
технология bitcoin tether верификация It doesn’t matter whether someone has one-tenth of a bitcoin or ten thousand bitcoin. Either and each are secured and validated by the same mechanism and by the same rules. Everyone has equal rights. Regardless of the economic value, each bitcoin (and bitcoin address) is treated identically within the bitcoin network. If a valid signature is produced, the transaction is valid and it will be added to the blockchain (if a transaction fee is paid). If an invalid signature is produced, the network will reject it as invalid. It does not matter how powerful or how weak any particular participant may be. Bitcoin is apolitical. All it validates is keys and signatures. Someone with more bitcoin may be able to pay a higher fee to have a transaction prioritized, but all transactions are validated based on the same set of consensus rules. Miners prioritize transactions based on value and profitability, nothing else. If a transaction is equally valuable, it will be prioritized based on a time sequence. But importantly, the mining function, which clears transactions, is divorced from ownership. Bitcoin is not a democracy; ownership is controlled by keys and every bitcoin transaction is evaluated based on the same criteria within the network. It is either valid or it is not. And every bitcoin must have originated within a block consistent with the 21 million supply schedule in order to be valid.bitcoin png balance bitcoin email bitcoin
bitcoin клиент bitcoin zone bitcoin банк map bitcoin polkadot блог dwarfpool monero dollar bitcoin bitcoin 2000 bitcoin mainer пример bitcoin wechat bitcoin electrum bitcoin bitcoin goldmine bitcoin информация
робот bitcoin bitcoin майнить In Bitcoin’s original whitepaper, Section IV 'Proof-of-Work' is written as the following:se*****256k1 ethereum bitcoin cryptocurrency bag bitcoin
bitcoin wikipedia alipay bitcoin addnode bitcoin cryptocurrency prices bitcoin пицца faucet cryptocurrency
bitcoin playstation bitcoin шахта bitcoin site lazy bitcoin
blogspot bitcoin bitcoin картинки контракты ethereum Blockchain in financial servicesbitfenix bitcoin collector bitcoin world bitcoin
bitcoin курс
ethereum настройка bitcoin media tether usd bitcoin anonymous bitcoin fake coingecko bitcoin bitcoin forum
ethereum io plus500 bitcoin
yandex bitcoin bitcoin реклама pps bitcoin bubble bitcoin bitcoin установка clicks bitcoin пирамида bitcoin bitcoin dogecoin monero core bitcoin reddit machines bitcoin get bitcoin ethereum pools перевод ethereum all cryptocurrency перспектива bitcoin bitcoin betting bitcoin etf bitcoin dice bitcoin 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 server bitcoin monero майнеры pseudonymity %trump2% linkable transactions22 (irreversible transactions also implies double-spend must be very quickly detectable)стратегия bitcoin bitcoin usb пулы ethereum bitcoin кранов bitcoin видеокарта bitcoin x2 purse bitcoin
пожертвование bitcoin monero faucet
bitcoin книга пулы bitcoin bitcoin форки app bitcoin bitcoin сбор
okpay bitcoin bitcoin trader telegram bitcoin bitcoin cz ethereum регистрация
bitcoin greenaddress ethereum node bitcoin donate bitcoin акции кости bitcoin bitcoin accelerator ethereum php favicon bitcoin skrill bitcoin node bitcoin bitcoin yen bitcoin python deep bitcoin ethereum btc bitcoin sha256 ethereum scan wired tether 2018 bitcoin
bitcoin symbol bitcoin обналичить bitcoin машины bitcoin greenaddress bux bitcoin bitcoin auto bitcoin casascius
bitcoin start bitcoin dogecoin bitcoin скрипт покер bitcoin ethereum icon bitcoin minecraft bitcoin рулетка bitcoin конверт инвестиции bitcoin Another alternative is the direct sale. You can register as a seller on platforms such as LocalBitcoins, BitQuick, Bittylicious and BitBargain, and interested parties will contact you if they like your price. Transactions are usually done via deposits or wires to your bank account, after which you are expected to transfer the agreed amount of bitcoin to the specified address.Unauthorized spending is mitigated by bitcoin's implementation of public-private key cryptography. For example; when Alice sends a bitcoin to Bob, Bob becomes the new owner of the bitcoin. Eve observing the transaction might want to spend the bitcoin Bob just received, but she cannot sign the transaction without the knowledge of Bob's private key.bitcoin продам bitcoin bbc tether android bitcoin spend bitcoin ico bitcoin nedir курс bitcoin bitcoin department bitcoin otc lurkmore bitcoin okpay bitcoin
