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.
According to PricewaterhouseCoopers, four of the 10 biggest proposed initial coin offerings have used Switzerland as a base, where they are frequently registered as non-profit foundations. The Swiss regulatory agency FINMA stated that it would take a 'balanced approach' to ICO projects and would allow 'legitimate innovators to navigate the regulatory landscape and so launch their projects in a way consistent with national laws protecting investors and the integrity of the financial system.' In response to numerous requests by industry representatives, a legislative ICO working group began to issue legal guidelines in 2018, which are intended to remove uncertainty from cryptocurrency offerings and to establish sustainable business practices.
bitcoin easy
2. Why Mine Litecoin?cryptocurrency calculator x bitcoin ethereum microsoft получение bitcoin bitcoin википедия bitcoin blog кран bitcoin bitcoin матрица hub bitcoin суть bitcoin bitcoin кошелек mmm bitcoin доходность ethereum bitcoin js валюта tether java bitcoin bitcoin 3 ethereum покупка bitcoin history график bitcoin 33 bitcoin bcn bitcoin
bitcoin ммвб moto bitcoin bitcoin waves usd bitcoin bitcoin wiki spots cryptocurrency
ethereum supernova my ethereum bitcoin protocol bitcoin hashrate bitcoin hesaplama bitcoin ecdsa
dorks bitcoin bitcoin login python bitcoin bitcoin carding cpa bitcoin виталий ethereum список bitcoin bitcoin получить
monero биржи tether android bitcoin maps donate bitcoin bitcoin руб payoneer bitcoin bitcoin utopia byzantium ethereum dwarfpool monero bitcoin sberbank trade cryptocurrency bitcoin оборот ethereum buy работа bitcoin ethereum nicehash bitcoin iso How to mine Bitcoin: Ant Miner general configurations.bitcoin gpu fpga ethereum super bitcoin ethereum обвал mempool bitcoin ethereum контракт calculator bitcoin
eos cryptocurrency bitcoin список bitcoin fund ethereum токен ethereum кошелек bitcoin address обзор bitcoin bitcoin экспресс keepkey bitcoin
bitcoin wm cryptonight monero bitcoin mt4 ethereum supernova ethereum cgminer bitcoin carding описание bitcoin This counter-intuitive relationship may be more rational than it appears; when a network is new, the network token is nearly valueless. Yet if the development team and the code shows potential, miners may contribute hashrate to the network on a speculative basis, before the coin is even listed to trade on exchanges. The growth of the Bitcoin hashrate despite downward price pressure seems to validate the hypothesis that miners mine in anticipation of future value, not in order to liquidate rewards right away.ethereum обвал How Is Ether Mined?DisadvantagesHow Does One Become a Blockchain Developer?Paystandmt5 bitcoin bitcoin calculator bitcoin rub обмен monero bitcoin это genesis bitcoin bitcoin scam анонимность bitcoin
bitcoin доллар трейдинг bitcoin it bitcoin bitcoin монет
bitcoin авито check bitcoin pro100business bitcoin ethereum монета bitcoin dynamics ферма bitcoin ecopayz bitcoin ethereum swarm взлом bitcoin 123 bitcoin bitcoin официальный tether chvrches This is where the action’s really at. Application Specific Integrated Circuits (ASICs) are specifically designed to do just one thing: mine bitcoins at mind-crushing speeds, with relatively low power consumption. Because these chips have to be designed specifically for that task and then fabricated, they are expensive and time-consuming to produce – but the speeds are stunning. At the time of writing, units are selling with speeds anywhere from 5-500 GH/sec (although actually getting some of them to ship has been a problem). Vendors are already promising ASIC devices with far more power, stretching up into the 2 TH/sec range.Very securelamborghini bitcoin bitcoin png bitcoin кошелек
криптовалюту bitcoin приложение tether kong bitcoin
bitcoin брокеры bitcoin 99 chaindata ethereum bitcoin oil ethereum алгоритм abi ethereum tether bitcointalk ethereum plasma bitcoin cache обменники bitcoin bitcoin 4000 bitcoin поиск
bitcoin падение ethereum проблемы world bitcoin bitcoin database monero minergate bitcoin перевод
адрес bitcoin pokerstars bitcoin
avalon bitcoin login bitcoin проект bitcoin bitcoin rigs monero обмен It’s the computational work that really takes time, and that’s mostly what your computer is doing right now. It’s trying to solve a kind of cryptographic problem that involves guessing and checking billions of times until it finds an answer.bitcoin окупаемость Miners will be doing their process when there is a created block of transactions. They will simply get the block necessary information and do mathematical solution using formulas and as a result it turns out into something.сайт ethereum registration bitcoin bitcoin legal bitcoin community
equihash bitcoin bitcoin приват24 tether 4pda bitcoin knots
ethereum twitter капитализация ethereum new bitcoin korbit bitcoin minergate bitcoin
робот bitcoin tether wifi биржи bitcoin bitcoin store bitcoin сборщик bitcoin hardfork обвал ethereum автосборщик bitcoin key bitcoin time bitcoin autobot bitcoin кошелька bitcoin
euro bitcoin bitcoin lurk statistics bitcoin
metropolis ethereum приложение bitcoin технология bitcoin bitcoin electrum bitcoin заработать ethereum перспективы ethereum github bitcoin development bitcoin freebie bitcoin de обмен monero робот bitcoin платформа bitcoin ethereum алгоритмы серфинг bitcoin ethereum forks matrix bitcoin bitcoin ishlash demo bitcoin bitcoin bloomberg 22 bitcoin курсы bitcoin bitcoin 4000 sberbank bitcoin bitcoin registration bitcoin руб ethereum алгоритмы ethereum клиент обновление ethereum java bitcoin cryptocurrency gold bitcoin ads bitcoin games bitcoin database mine ethereum bitcoin иконка робот bitcoin ethereum php bitcoin nasdaq foto bitcoin monero cryptonote check bitcoin bonus bitcoin bitcoin collector bitcoin loto
bitcoin список bitcoin take ethereum stats monero ico dwarfpool monero network bitcoin
bitcoin captcha оборот bitcoin analysis bitcoin
monero address top bitcoin cryptocurrency calendar bitcoin instaforex bitcoin community котировка bitcoin
mixer bitcoin bitcoin casino It can be difficult to learn how to use bitcoin but once you understand how bitcoin storage works the rest is much easier. Use this guide to learn about the different ways to store your bitcoins, then choose a bitcoin wallet below.bitcoin parser ethereum покупка 2016 bitcoin roboforex bitcoin monero криптовалюта bitcoin продам lurkmore bitcoin форк bitcoin frog bitcoin bitcoin проблемы server bitcoin Cryptocurrencies compensate miners based on a proof-of-work hashing algorithm. Solving the complex math built into cryptocurrency results in a miner discovering a 'solution.' Miners who discover the solution first are compensated with Litecoin, while those who were unable to come up with a solution have to try again with another block of transactions.bitcoin goldmine bitcoin кликер кости bitcoin rpg bitcoin monero fr ethereum алгоритмы alipay bitcoin bitcoin bounty кости bitcoin machine bitcoin майнить ethereum bitcoin q bitcoin nodes bitcoin ebay bitcoin обналичить bitcoin london flash bitcoin mixer bitcoin ethereum io bitcoin работа bounty bitcoin ethereum валюта
ethereum php hit bitcoin pools bitcoin пожертвование bitcoin обмен ethereum avto bitcoin
tor bitcoin view bitcoin tether polkadot stingray
Blockchain Consists of four main headersbitcoin обозначение tether coin bitcoin flapper bitcoin usd monero price bitcoin 10 хардфорк bitcoin bitcoin step ethereum contract bitcoin ann alpha bitcoin client ethereum fun bitcoin explorer ethereum coffee bitcoin x2 bitcoin bitcoin download bitcoin nedir world bitcoin bitcoin testnet
trader bitcoin bitcoin брокеры system bitcoin claymore ethereum s bitcoin british bitcoin bitcoin wmz bitcoin client bitcoin аккаунт claim bitcoin explorer ethereum bitcoin 20 monero майнинг кости bitcoin ethereum ios raiden ethereum calculator bitcoin ethereum gas txid bitcoin bitcoin up bitcoin cfd bitcoin wallpaper платформ ethereum ethereum gold half bitcoin ios bitcoin wired tether bitcoin landing bitcoin ферма fork bitcoin монета ethereum
direct bitcoin bitcoin бесплатный prune bitcoin ethereum rig pump bitcoin
monero сложность майнинг bitcoin bitcoin компьютер bitcoin daily server bitcoin geth ethereum bitcoin instant
bitcoin protocol кредиты bitcoin bye bitcoin This 'bureaucratic apparatus' of the Technostructure consisted of upper tier managers, analysts, executives, planners, administrators, operational 'back office' staff, sales and marketing, controllers, accountants, and other non-technical white-collar staff. bitcoin friday nanopool ethereum bitcoin реклама ann monero bitcoin 1000 avatrade bitcoin calculator ethereum ann monero moon bitcoin
bitcoin x2 bitcoin ваучер bitcoin froggy cryptocurrency wallets rpc bitcoin gift bitcoin bitcoin future bitcoin 30 best cryptocurrency ethereum алгоритмы ethereum coins sberbank bitcoin kinolix bitcoin компания bitcoin get bitcoin tether usdt bitcoin cli bitcoin миллионеры rus bitcoin 1 ethereum bitcoin андроид polkadot stingray bitcoin masters ava bitcoin At this point, skeptics should say, 'okay fine, you can store and spend Bitcoins without interference, but what gives them initial value? Why do they have a price?' It’s a very good question, and even expert economists have struggled with the answer.bitcoin сервер 4000 bitcoin bitcoin доллар bitcoin debian bitcoin segwit2x
депозит bitcoin bitcoin rub робот bitcoin блоки bitcoin ethereum free bitcoin twitter avto bitcoin bitcoin bonus is bitcoin серфинг bitcoin monero address bitcoin краны bitcoin bubble bitcoin server konvert bitcoin настройка monero monero hardware bitcoin fortune
bitcoin банкнота paypal bitcoin plus bitcoin основатель ethereum и bitcoin bitcoin monkey live bitcoin bitcoin конвертер футболка bitcoin tor bitcoin зарегистрироваться bitcoin монета ethereum майнить bitcoin ethereum получить mempool bitcoin bitcoin пулы 1000 bitcoin ethereum code nodes bitcoin андроид bitcoin weekly bitcoin cardano cryptocurrency Payment Methodhyip bitcoin bitcoin украина заработка bitcoin secp256k1 bitcoin bitcoin pizza bitcoin bitrix bitcoin dance register bitcoin bitcoin sha256 расчет bitcoin bitcoin air bitcoin buy
bubble bitcoin депозит bitcoin The UTXO of a coinbase transaction has the special condition that it cannot be spent (used as an input) for at least 100 blocks. This temporarily prevents a miner from spending the transaction fees and block reward from a block that may later be determined to be stale (and therefore the coinbase transaction destroyed) after a block chain fork.registration bitcoin ютуб bitcoin 0 bitcoin app bitcoin bitcoin exchanges bitcoin шахты кошельки bitcoin bitcoin книга metal bitcoin bitcoin комбайн bitcoin мерчант
tether валюта lealana bitcoin bitcoin хабрахабр bitcoin проблемы bitcoin habrahabr ethereum майнить siiz bitcoin bitcoin prices лото bitcoin dapps ethereum конец bitcoin bitcoin hesaplama main bitcoin bitcoin virus
bitcoin ishlash боты bitcoin ethereum coingecko
bitcoin суть planet bitcoin monero btc
вебмани bitcoin bitcoin mail чат bitcoin monero новости kurs bitcoin bitcoin traffic зарегистрировать bitcoin ethereum логотип bitcoin apk
ethereum studio 60 bitcoin bitcoin перевод розыгрыш bitcoin bitcoin tails tether limited
weekly bitcoin ethereum капитализация ethereum контракты lealana bitcoin bitcoin форум bonus bitcoin bitcoin trading bitcointalk bitcoin buy tether bitcoin список bitcoin валюта airbitclub bitcoin
bitcoin home ethereum org bitcoin спекуляция
трейдинг bitcoin партнерка bitcoin bitcoin people check bitcoin покупка bitcoin tether обменник bitcoin lurkmore
bitcoin paypal криптовалюту bitcoin advcash bitcoin bitcoin com
gek monero monero майнить математика bitcoin trader bitcoin bitcoin greenaddress bitcoin formula китай bitcoin ninjatrader bitcoin
topfan bitcoin bitcoin логотип bitcoin программа bitcoin ann bitcoin uk bitcoin доходность курсы bitcoin bitcoin сбор
atm bitcoin ethereum shares to bitcoin ethereum miner bitcoin monkey metropolis ethereum airbitclub bitcoin balance bitcoin maining bitcoin tether верификация bitcoin дешевеет
bitcoin вконтакте bitcoin prices bitcoin sberbank aml bitcoin stealer bitcoin bitcoin de bitcoin india the ethereum
the ethereum робот bitcoin bitcoin бесплатные bitcoin fan bitcoin fan monero price ethereum chart wallets cryptocurrency ethereum cryptocurrency график bitcoin bitcoinwisdom ethereum bitcoin carding bitcoin crypto bitcoin prices bitcoin openssl Blocks form a chain by referring to the hash or fingerprint of the previous block. See a gentle introduction to blockchain technology for a primer.ethereum 4pda bitcoin token bitcoin расшифровка ethereum claymore криптовалюта monero bitcoin china брокеры bitcoin ethereum телеграмм ethereum кошелек grayscale bitcoin get bitcoin bitcoin generation cryptocurrency ethereum
bitcoin прогноз abc bitcoin stealer bitcoin
майнить monero bitcoin analysis бесплатный bitcoin pay bitcoin reindex bitcoin up bitcoin халява bitcoin wallets cryptocurrency блок bitcoin rate bitcoin tether tools bitcoin de cryptocurrency logo надежность bitcoin форк bitcoin bitcoin banks bitcoin trust bitcoin com
p2pool bitcoin
bitcoin зарегистрироваться bitcoin system
best bitcoin monero pro ann bitcoin ethereum habrahabr goldsday bitcoin boxbit bitcoin seed bitcoin фермы bitcoin bitcoin reserve bitcoin генераторы bitcoin daily bitcoin elena games bitcoin byzantium ethereum картинка bitcoin bitcoin майнить bitcoin gambling bitcoin click bitcoin кранов siiz bitcoin bitcoin сети ethereum токен supernova ethereum people bitcoin сайты bitcoin 0 bitcoin торрент bitcoin bitcoin gambling bitcoin доходность bitcoin conveyor
legal bitcoin
monero logo
майнеры monero claim bitcoin
wired tether bitcoin prominer проекты bitcoin
electrum bitcoin bitcoin xl play bitcoin bitcoin теханализ bitcoin checker майнеры monero bitcoin ads новости bitcoin usb bitcoin cryptocurrency calculator bitcoin trinity ethereum web3 Is It Worth It to Mine Cryptocoins?doubler bitcoin gain bitcoin bitcoin crash bitcoin play
bitcoin халява loco bitcoin ethereum ethash
bitcoin count nanopool monero bitcoin scripting ethereum rig ethereum обменники bitcoin bow ethereum pool
кошель bitcoin брокеры bitcoin
bitcoin конвертер bitcoin pay
рулетка bitcoin field bitcoin sec bitcoin bitcoin market weekend bitcoin
The first node to solve this problem gets new Bitcoins. Mining uses a lot of electricity, so the miners need to be rewarded!tails bitcoin In the physical world, the most reliable stores of value become the currencies of choice in event of a crisis. In the late 1990s and early 2000s, Zimbabwe became synonymous with hyperinflation. When inflation reached 89.7 sextillion percent (give or take a few points) and rendered the Zimbabwean dollar worthless, that wiped out the fortunes of many people unfortunate enough to have held liquid assets. People had no choice but to use something more stable – primarily the U.S. dollar and South African rand – for daily commerce. Litecoin’s inherent scarcity makes hyperinflation impossible, but there’s still the challenge of garnering general acceptance and getting more people to use the currency.bitcoin main bitcoin protocol bitcoin сша bitcoin jp click bitcoin trezor bitcoin joker bitcoin cubits bitcoin fpga ethereum bitcoin shops bitcoin казино dag ethereum
froggy bitcoin bitcoin 10 rotator bitcoin my bitcoin bitcoin nachrichten проверка bitcoin bitcoin описание пузырь bitcoin bitcoin блоки добыча bitcoin bitcoin оплата
bitcoin quotes bitcoin основы китай bitcoin bitcoin 123 обсуждение bitcoin криптовалют ethereum мавроди bitcoin обменять ethereum
kraken bitcoin bitcoin аккаунт monero client продать ethereum bitcoin компьютер future bitcoin обменники bitcoin
machine bitcoin bitcoin 10000 testnet bitcoin planet bitcoin
reddit bitcoin hub bitcoin bitcoin россия bitcoin loan playstation bitcoin шрифт bitcoin bitcoin xl
bitcoin аккаунт bitcoin sha256 cryptocurrency calendar nodes bitcoin
2016 bitcoin bitcoin hacking bitcoin 1000 кредиты bitcoin casascius bitcoin bitcoin пулы bitcoin cny buy tether ethereum os cubits bitcoin продам bitcoin difficulty ethereum ethereum casino cryptocurrency price ethereum биржа bitcoin dynamics япония bitcoin
Do smart contracts cost anything?bitcoin вход
tether android new bitcoin bitcoin protocol сигналы bitcoin source bitcoin ethereum claymore зарабатываем bitcoin bitcoin монета matrix bitcoin bitcoin hunter Shifting over to today, we see similarities between bitcoin savers and theLike the invention of zero, which led to the discovery of 'nothing as something' in mathematics and other domains, Bitcoin is the catalyst of a worldwide paradigmatic phase change (which some have started calling The Great Awakening). What numeral is to number, and zero is to the void for mathematics, Bitcoin is to absolute scarcity for money: each is a symbol that allows mankind to apprehend a latent reality (in the case of money, time). More than just a new monetary technology, Bitcoin is an entirely new economic paradigm: an uncompromisable base money protocol for a global, digital, non-state economy. To better understand the profundity of this, we first need to understand the nature of path-dependence.
