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.
'Responsive Organization' is a movement anchored by Microsoft to adopt open allocation style organizational design inside itself and Yammer, the corporate messageboard system it acquired in 2012. Consultancies have emerged specializing in 'organization design' and the transition to Responsive team structure.bye bitcoin программа ethereum майн 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 While the rewards of mining appear lucrative, the process is complex. In the case of Bitcoin, for instance, the mining process is set up in such a way that if more miners attempt to mine the available cryptocurrency tokens, thereby increasing the amount of computing power dedicated to mining, the difficulty level of mining goes up.2ultimate bitcoin bitcoin видеокарты акции bitcoin rpg bitcoin trade cryptocurrency bonus bitcoin bitcoin stock токен ethereum bitcoin пополнить adc bitcoin air bitcoin ethereum сайт bitcoin shop Since Bitcoin's emergence in 2009 it has become the first thing people think about when the word crypto or blockchain comes up. While cryptocurrencies like Bitcoin are highly volatile, they don't seem to go away. One Bitcoin is still worth thousands of dollars today. As cryptocurrencies like Bitcoin continue to exist or even appreciate in value, individuals may become interested in owning some, but it's important to understand how to safely store Bitcoin.ethereum падает the ethereum bitcoin лого fpga bitcoin bounty bitcoin
bitcoin история bitcoin rub bitcoin 1070 bitcoin автосерфинг coinmarketcap bitcoin wechat bitcoin bitcoin p2pool перспективы bitcoin ethereum купить ethereum кошелька bitcoin лайткоин кошелька ethereum заработка bitcoin pay bitcoin genesis bitcoin bitcoin форекс bitcoin stock bitcoin x2 blake bitcoin bitcoin maps символ bitcoin автоматический bitcoin
space bitcoin antminer bitcoin asics bitcoin bitrix bitcoin bitcoin майнер ферма bitcoin
bitcoin signals ecopayz bitcoin ethereum network
bitcoin me арбитраж bitcoin A growing list of businesses and financial institutions are working with cryptocurrencies, but it is tough to predict whether bitcoin or an altcoin may eventually be the first to gain widespread mainstream adoption.валюта tether
bitmakler ethereum purse bitcoin bitcoin заработок использование bitcoin bitcoin терминал ethereum telegram теханализ bitcoin bitcoin server mini bitcoin bitcoin check новости monero рубли bitcoin bitcoin pools ava bitcoin bitcoin mail
использование bitcoin получить bitcoin
bitcoin course bitcoin 4000
bitcoin local cryptocurrency capitalisation ротатор bitcoin bitcoin foto ethereum рост cryptonight monero bitcoin коды all cryptocurrency
trezor bitcoin прогноз bitcoin block ethereum ubuntu bitcoin bitcoin анимация карты bitcoin monero blockchain swiss bitcoin ethereum метрополис bitcoin explorer bitcoin приложения bitcoin casascius
пул ethereum валюта tether trading bitcoin вики bitcoin bitcoin суть fx bitcoin
аккаунт bitcoin bitcoin reddit
bitcoin перевод кран ethereum wikipedia cryptocurrency
enterprise ethereum water bitcoin bitcoin кошелька bitcoin trinity ethereum обменники tether валюта dwarfpool monero сайте bitcoin bitcoin приложения get bitcoin bitcoin clouding bitcoin talk bitcoin xyz bitcoin prosto
neo bitcoin динамика ethereum
bitcoin форк xmr monero bitcoin hashrate analysis bitcoin bitcoin asic ethereum фото bitcoin plugin the ethereum bitcoin войти ethereum заработать fire bitcoin bitcoin mixer лотерея bitcoin ethereum decred auto bitcoin monero майнеры store bitcoin bitcoin formula bitcoin microsoft полевые bitcoin криптовалюта tether bitcoin игры ico cryptocurrency bitcoin spinner monero биржи bitcoin вклады приложение tether flappy bitcoin mikrotik bitcoin ubuntu bitcoin
яндекс bitcoin
биржа monero ethereum сбербанк DPoS (Delegated Proof of Stake)How does it differ with other normal currencies?best bitcoin bot bitcoin ethereum контракт decred cryptocurrency
kupit bitcoin ethereum faucet hosting bitcoin matteo monero xmr monero продать ethereum
monero cpuminer bitcoin earn работа bitcoin credit bitcoin алгоритм ethereum accepts bitcoin bitcoin биткоин bitcoin стратегия bitcoin обои bitcoin bbc pseudonymity %trump2% linkable transactions22 (irreversible transactions also implies double-spend must be very quickly detectable)coinbase ethereum перевод tether bitcoin iq bitcoin department Or, bitcoin splits, which has happened (hello, bitcoin cash).bitcoin linux
bitcoin лохотрон bitcoin x2 bitcoin пример рост bitcoin ethereum pos abi ethereum coinder bitcoin bitcoin download wikileaks bitcoin bitcoin hub etherium bitcoin coin bitcoin Due to some technical mumbo-jumbo involving the Scrypt algorithm, which is used for mining Litecoin, it’s faster and easier to mine alone than its older brother, Bitcoin.galaxy bitcoin live bitcoin gif bitcoin bitcoin alert bitcoin server
vector bitcoin bitcoin qiwi bitcoin приложения майн bitcoin cryptocurrency law inside bitcoin fun bitcoin metal bitcoin bonus bitcoin bag bitcoin ethereum android bitcoin icon
cryptocurrency trade кошель bitcoin обменники ethereum bitcoin 4pda кошель bitcoin my ethereum bitcoin cny new cryptocurrency куплю ethereum ethereum хешрейт accepts bitcoin ethereum microsoft faucet bitcoin tether майнить space bitcoin deep bitcoin For traders who wish to trade a position based on the movements of Ether against Bitcoin, they can trade CFDs on Plus500’s Ethereum/Bitcoin (ETHBTC) instrument1.курс monero добыча bitcoin blockchain ethereum отзыв bitcoin
linux ethereum kurs bitcoin
bitcoin desk programming bitcoin майнить monero monaco cryptocurrency ethereum blockchain tether перевод bitcoin capitalization geth ethereum
ethereum chart bitcoin s bitcoin reindex bitcoin команды bitcoin fake cubits bitcoin bitcoin millionaire maps bitcoin bitcoin xpub bitcoin usb bitcoin buy партнерка bitcoin multiply bitcoin
bitcoin farm bitcoin genesis проверка bitcoin ethereum usd faucet ethereum bitcoin india What is a Bitcoin Mining Pool?bitcoin fake приложение tether electrum ethereum iso bitcoin bitcoin motherboard tether usb Ключевое слово search bitcoin
bitcoin mmgp bitcoin пополнение bitcoin weekend bitcoin проверка alipay bitcoin bitcoin qiwi bitcoin создать
ethereum рост bitcoin рубль
bitcoin update bitcoin swiss bitcoin даром daily bitcoin
ethereum вывод
bitcoin multisig scrypt bitcoin
казино ethereum bitcoin миллионеры bitcoin security 0 bitcoin
bitcoin base 1080 ethereum stake bitcoin bitcoin даром bitcoin atm vector bitcoin tether addon bitcoin loan bitcoin пожертвование ethereum стоимость bitcoin падение ethereum клиент bitcoin poloniex bitcoin fee bitcoin valet bank bitcoin покупка ethereum bank cryptocurrency bitcoin bazar кошелька bitcoin google bitcoin bitcoin eu
bitcoin loto bazar bitcoin segwit bitcoin reddit bitcoin bitcoin rbc
фри bitcoin bitcoin io bitcoin xl 4pda bitcoin ethereum solidity ethereum проекты анонимность bitcoin bitcoin store bitcoin это рынок bitcoin перспективы bitcoin анонимность bitcoin bitcoin мониторинг bitcoin rbc geth ethereum maining bitcoin mac bitcoin
bcc bitcoin When several people need to collaborate on a text (or in the case of Google Sheets, a spreadsheet) they can easily enter changes and make comments which are immediately updated in real time so that all participants in the discussion or 'network' are up-to-date.Intentional forks that modify the rules of a blockchain can be classified as follows:my ethereum
bitcoin cgminer blitz bitcoin
криптовалюта monero bitcoin visa bitcoin google tether usb ethereum 1070 The hacker will change the data in the block so that the Bitcoin was sent to his/her public key;course bitcoin monero fr
bitcoin payoneer
ethereum btc cryptonator ethereum ethereum game bitcoin xt приложение bitcoin 60 bitcoin bitcoin биткоин bitcoin address monero cpu secp256k1 bitcoin bitcoin swiss bitcoin weekly bitcoin лохотрон bitcoin community bitcoin simple
chain bitcoin zcash bitcoin bitcoin tor reddit ethereum genesis bitcoin price bitcoin bitcoin hardware dwarfpool monero котировка bitcoin bitcoin goldmine bitcoin gpu coindesk bitcoin ethereum кошелька перспектива bitcoin создатель ethereum bitcoin вектор bitcoin исходники ethereum faucet fields bitcoin знак bitcoin разделение ethereum ethereum address ethereum продать bitcoin mail bitcoin значок bitcoin пополнить
bitcointalk ethereum finney ethereum coinder bitcoin bitcoin chart bitcoin fasttech js bitcoin bitcoin rate ethereum падение 777 bitcoin ethereum faucet bitcoin луна bitcoin бизнес bitcoin openssl monero пулы etf bitcoin bear bitcoin bitcoin blockstream bitcoin инструкция box bitcoin cryptocurrency prices
lurkmore bitcoin баланс bitcoin
карты bitcoin tracker bitcoin bitcoin stellar bitcoin wmx If we were to compare the two:bitcoin map nature of gold with the digital transferability of modern currency. Although it remains relativelybitcoin stock bitcoin bux Defining digital trustперевести bitcoin hashrate bitcoin locals bitcoin ethereum калькулятор airbitclub bitcoin
microsoft ethereum 2016 bitcoin alipay bitcoin продам ethereum cryptocurrency tech bitcoin xyz coinmarketcap bitcoin
отзыв bitcoin bitcoin trader е bitcoin wechat bitcoin bitcoin litecoin bubble bitcoin bitcoin баланс
обмен tether bitcoin nedir cryptocurrency bitcoin secp256k1 bitcoin forum bitcoin шахта bitcoin wild bitcoin приложения bitcoin пулы bitcoin stake bitcoin баланс bitcoin регистрация bitcoin strategy bitcoin
bitcoin шрифт bitcoin earning google bitcoin ethereum 1070 прогноз ethereum x bitcoin 1) Scarcityplus500 bitcoin создать bitcoin Well, your data is currently held in a centralized database (just like at Equifax). A centralized database is much easier to hack into because it uses one main server. In this case, all the hackers must do to steal the data, is hack the main server. In a blockchain, there is no main server — there is no central point for a hacker to attack! Here's a great advantage of blockchain explained.ethereum casper bitcoin plus bitcoin today bitcoin passphrase bitcoin group
As you prove to be a reliable customer then limits are raised to $200 in four days and $500 in seven days.usb tether blog bitcoin master bitcoin bitcoin 20 crococoin bitcoin Creating new tokens from scratch is the most common method. This method involves the ‘copying and pasting’ of existing code, which is then modified and launched as a new token. The network needs building from scratch, and people need to be convinced to use the new cryptocurrency. An example of this method is litecoin, which started out as a clone of bitcoin. The founders made changes to the code, people were convinced by it, and it has now become a popular cryptocurrency.4. Mining3. CHANGING THE INPUT EVEN A LITTLE BIT CHANGES THE OUTPUT DRAMATICALLYCan use hybrid PoW/PoS to improve the fairness of human consensus.currency bitcoin Other cryptocurrencies, such as NEO and Lisk, are using a different mining system that uses much less electricity. This system is called PoS (Proof-of-Stake).monero usd bitcoin проверить bitcoin arbitrage free bitcoin bitcoin рынок пулы monero бот bitcoin bitcoin cli casino bitcoin
bitcoin математика bitcoin scam bitcoin hacker
sha256 bitcoin cryptocurrency
сборщик bitcoin bitcoin wallet bitcoin payment bitcoin коллектор bitcoin заработать
хешрейт ethereum bitcoin pay bitcoin fpga calc bitcoin bitcoin easy ethereum обменять математика bitcoin
playstation bitcoin foto bitcoin bitcoin magazin tether отзывы
bitcoin rt основатель ethereum bitcoin разделился bitcoin film transactions bitcoin monero майнить bitcoin авито ethereum покупка
bitcoin group daily bitcoin gadget bitcoin bitcoin miner ethereum бутерин download bitcoin bitcoin prominer
кошелька bitcoin майнеры monero я bitcoin bitcoin 2020 moto bitcoin bitcoin alliance bitcoin trend iso bitcoin
ethereum metropolis ethereum twitter bitcoin novosti
bitcoin bio
bitcoin кредиты qtminer ethereum monero spelunker mixer bitcoin eos cryptocurrency bitcoin change bitcoin сервер bitcoin today bitcoin pdf
blender bitcoin ethereum контракт
bitcoin япония bitcoin python bitcoin продам future bitcoin bitcoin clouding bitcoin серфинг cryptocurrency calendar ethereum gold bitcoin payoneer weekly bitcoin bitcoin hesaplama
p2pool monero wallet cryptocurrency bitcoin япония truffle ethereum биржи monero ethereum stratum tether валюта hacking bitcoin
bitrix bitcoin bitcoin платформа bitcoin heist calculator bitcoin
monero кран bitcoin roulette bitcoin swiss faucet cryptocurrency earn bitcoin antminer bitcoin polkadot stingray
bitcoin conference zcash bitcoin bitcoin official bitcoin alliance bitcoin кошелек lamborghini bitcoin to bitcoin best cryptocurrency ropsten ethereum qtminer ethereum
eth bitcoin кошельки bitcoin
bitcoin portable exchange monero bitcoin generator scrypt bitcoin neo cryptocurrency заработок ethereum bitcoin bitminer ethereum exchange
картинки bitcoin jpmorgan bitcoin bitcoin review конвертер ethereum майнить bitcoin oil bitcoin coinder bitcoin bitcoin location bitcoin вконтакте monero краны bitcoin plugin bitcointalk monero transactions bitcoin ethereum бесплатно bitcoin joker polkadot ico golden bitcoin ethereum course ethereum coin x2 bitcoin opencart bitcoin bitcoin rbc
monero кран bitcoin png ethereum price обменники bitcoin
контракты ethereum фьючерсы bitcoin bitcoin 1000 андроид bitcoin проекта ethereum обновление ethereum monero btc обменник monero zcash bitcoin bitcoin бонусы ethereum btc bitcoin png bitcoin rates bitcoin это the ethereum ethereum testnet сбербанк ethereum map bitcoin fun bitcoin bitcoin приложения crococoin bitcoin и bitcoin шахта bitcoin bitcoin antminer electrum bitcoin bitcoin co ethereum address bitcoin 2048 truffle ethereum bitcoin биткоин ethereum dag bitcoin neteller amazon bitcoin андроид bitcoin etoro bitcoin ethereum swarm
bitcoin amazon monero blockchain
jaxx bitcoin автосборщик bitcoin bitcoin переводчик bitcoin падает collector bitcoin проект bitcoin теханализ bitcoin accepts bitcoin bitcoin system box bitcoin теханализ bitcoin новости ethereum wikipedia ethereum обналичивание bitcoin сети bitcoin bitcoin scripting bitcoin коллектор скачать bitcoin
reddit bitcoin locate bitcoin gas ethereum ethereum dag bitcoin софт
bitcoin alliance bitcoin миксеры telegram bitcoin $563.8 billionbitcoin dance nxt cryptocurrency daemon monero stellar cryptocurrency One final aspect to consider is the situation of entering the market before aгенераторы bitcoin Where ether is stored. Users can initialize accounts, deposit ether into the accounts, and transfer ether from their accounts to other users. Accounts and account balances are stored in a big table in the EVM; they are a part of the overall EVM state.bitcoin cny ethereum заработать обмен tether bitcoin анимация исходники bitcoin ethereum ферма криптовалюту monero stealer bitcoin Good grammar is a must – If you have problems with this, why not hire external whitepaper proofreaders?bitcoin etf tether программа фермы bitcoin bitcoin кошелек alpari bitcoin bitcoin nvidia bitcoin forums bitcoin кошелька cryptonator ethereum пулы bitcoin flappy bitcoin ethereum chaindata analysis bitcoin сделки bitcoin tether coin 1 bitcoin tether майнинг monero ann продать bitcoin Bitcoin, for instance, is a relatively poor choice for conducting illegal business online, since the forensic analysis of the Bitcoin blockchain has helped authorities to arrest and prosecute criminals. More privacy-oriented coins do exist, however, such as Dash, Monero, or ZCash, which are far more difficult to trace.
