Ethereum » What is it and how does it work?
The world of Internet transactions has changed drastically thanks to the emergence of cryptocurrencies and the chain of blocks.
In the past, payment transactions were only made through payment processors, but information technology blockchain began to be used for this.
Ethereum is one of the technologies used for this.
The block chain technology produced the iniciativa of cryptocurrencies, whose iniciativa was first presented by Wei Dai, in 1998, who proposed the iniciativa of creating a new type of decentralized money that used the cryptography as a means of control.
The ethereum created its own cryptocurrency, the ether,
What is ethereum?
He ethereum is a digital platform that adopts blockchain technology or distributed ledger technology (DTL) that allows creating agreements of smart contracts and decentralized applications with minimal programming logic, this using a Turing complete programming language and a blockchain computer.
This technology was initially created as an improved version of the bitcoin cryptocurrencythis to increase the limitations of its programming language, providing features such as custody over the block chainwithdrawal limits, game markets and financial contracts through a general programming language.
In the ethereum network, any protocol like currencies or reputation systems perro be written in a few lines of code.
The smart contracts they perro be incorporated into the platform with greater power than bitcoin scripts due to the added power of Turing Full.
The cryptocurrency of the ethereum platform is ether, and like bitcoin, ethereum is a public blockchain distributed network, but they have many differences.
Any developer perro create distributed applications that run smart contracts.
history of ethereum
programa developer Vitalik Buterinproposed integrating a Turing-complete language into the Bitcoin scripting system as an improvement to the protocol, although the concept is the brainchild of Sergio Demian Lerner that he develops in his thesis.
Its development was achieved thanks to a collective financing platform, from July to August 2014.
The system came out definitively on July 30, 2015.
The ethereum platform It was created by the programmer Vitalik Buterin in 2015, with the iniciativa of creating a tool for decentralized and collaborative applications.
This developer proposed to integrate a complete Turing language into the bitcoin system to improve its protocol.
He Ether (ETH) is the cryptocurrency of ethereum is that it perro be used in transactions that use this programa.
Like bitcoin, ether exists as a autonomous peer financial systemin a decentralized way.
Also like bitcoin, ether has risen in value in a very short time.
In January 2016, ether was worth approximately $1.
In September 2017, this value increased to more than $290However, being a cryptocurrency, its value is very volatile.
Despite being one of the thousands of cryptocurrencies that existalso has a significant capitalization, along with its two big rivals, bitcoin and bitcoin cash.
Who controls ethereum?
In the same way that nothing and nobody controls the technology of electronic e-e correo electrónico, ethereum also has no owners.
Ethereum is controlled by all Ethereum users in the world.
Even though the programmers improve programathey cannot force changes to the protocol because all other users are free to choose the programa and version they want.
In order for them to remain coincidente with each other, users need to use programa that abide by the same rules.
Ethereum perro only work properly if there is an agreement between all the users that support it.
participate.
Which means that all users and programmers have a strong incentive to protect this agreement.
The ether in the ethereum
He ether is the ethereum cryptocurrency that emplees cryptography to secure transactions within its distributed en línea database, also called blockchain.
It is publicly accessible, completely transparent and very difficult to modify afterwards.
The blockchain of ether is created through mining, where miners are responsible for verifying sets of ether transactions whose objective is to form “blocks” and encode them by solving complex algorithms.
These algorithms cánido be difficultas a way of maintaining consistency in the processing time of the blocks.
The new blocks are linked to the previous block chain and the miner in question receives a rewardthat is, a fixed number of ether tokens.
This cryptocurrency is a decentralized currency, so no one perro control or manage it.
This cryptocurrency does not have a central issuer like the dollar or the euro, since it is produced by people and companies around the world.
gas in ethereum
To avoid infinite loops or other computational waste in the code, all transactions are forced to establish a limit to the number of computational steps she perro use.
The primordial unit of computation used for this is “gas”.
Typically, a computational step has a cost of 1 gasHowever, there are operations that consume a greater amount of gas, because they are more computationally expensive, or because they increase the number of data that must be stored as part of the state.
He purpose of the commission system is to force an attacker to pay proportionally for each resource consumed, including computing, bandwidth, and storage.
Therefore, any operation that leads to the network to consume greater resources must have de gas commission proportional to the increase.
How does ethereum work?
The ethereum technology blockchain is quite afín to that of bitcoin, however its programming language allows application developers to create programa through which to manage the transactions and authorize results.
This programa is called a smart contract.
The rthereum works in a decentralized way through a virtual machine called Ethereum Virtual Machine (EVM). Said machine processes an intermediate code which is a mixture of LISP, assembler and bitcoin script.
The applications that process smart contracts They are written in Turing-complete programming languages, such as Serpent or Solidity, which follow the design-by-contract methodology to create smart contracts.
Ethereum emplees as currency the ether, the decentralized cryptocurrency that is used to process its contracts.
In this respect, Ethereum is not like most existing cryptocurrenciessince it is not only a network to reflect transactions, but also serves to feed Ethereum-based contracts.
Such open source contracts perro be used to run a wide variety of servicesThese include: financial exchanges, voting systems, crowdfunding platforms, intellectual property, and autonomous decentralized organizations.
ethereum smart contracts
A smart contract It is a contract (agreement) that serves to detalla a programming code, which allows to facilitate the exchange of money, property, content, actions, or any element of value.
When a smart contract runs on the blockchain, it becomes a computer program that runs automatically when the contract conditions.
Since they run on the blockchain, they run as scheduled.
Operation of smart contracts
An option contact is written as a code on the blockchain.
The users involved are anonymous, however the contact is the public ledger.
A trigger event as the arrival of a date causes the execution of the contract according to the scheduled terms.
The supervisors they perro use the blockchain to understand market activity while keeping the different positions of participating users private.
Other facts about smart contracts
Ethereum technology allows application developers perro create any operation.
This means that programmers perro develop many different applications that are far beyond anything that has been seen before.
The ethereum blockchain It has enormous capabilities.
One of them is to be able to create smart contracts.
This is some of what it sounds like.
This self-executing contract controls compliance, administration, performance, and payment.
The ethereum virtual machine
Before the appearance of ethereum, the blockchain programs they were created to do a limited equipo of processes.
bitcoin and others cryptocurrencies, for example, were created exclusively to operate as peer-to-peer cryptocurrencies.
This was a problem, but the ethereum virtual machine started to solve this.
The ethereum virtual machine (EVM) is a Turing complete program that runs on the ethereum network.
This programa allows any usuario to run any programa, regardless of the programming language used.
With this programInstead of having an entire blockchain for each new piece of programa, ethereum technology allows for the creation of thousands of different programs running on the same platform.
ethereum utility
Ethereum allows programmers develop and implement decentralized applications.
A decentralized application or Dapp operates under a especial purpose towards its users.
The bitcoin cryptocurrency, for example, is a dapp which provides a peer-to-peer electronic money system that allows bitcoin payment.
Any centralized service perro be decentralized using the ethereum network.
From services like loans provided by banks to intermediary services thought of as title registries, regulatory compliance, voting systems and much more.
Ethereum cánido also be used to create decentralized autonomous organizations (DAO).
A DAO it consists of one or more contracts that perro be financed by a equipo of like-minded individuals.
The ethereum technology it perro also be used to launch other cryptocurrencies.
Thanks to the ERC20 token estándar, other developers cánido issue their own versions of this token.
With this raising strategy, token issuers equipo the money they want to raise, offer it in a crowd sale, and receive Ether in exchange.
Advantages and disadvantages of ethereum
Ethereum technology has advantages and disadvantages that are important to know.
Below are the main advantages and disadvantages of this technology:
Advantages
Immutability: A third entity cannot make changes to the data.
Corruption and Tamper Proof: The programs are based on a network formed by the principle of consensus, making censorship impossible.
Security: With no central point of failure and using cryptography as security, programs are well protected against hacks and fraudulent activity.
Zero downtime: Programs never crash and perro never be stopped.
Disadvantages
Despite bringing many benefits, the decentralized applications they are not flawless.
Since smart contract code is written by humans, smart contracts they are only as good as the programming they have.
Errores in the code cánido lead to unwanted operations.
If an fallo is brought up, there is no efficient way in which an attack cánido be stopped beyond get network consensus rewrite the code base.
This goes against the essence of the blockchain which is meant to be immutable.
How do you access ethereum?
There are several ways in which the usuario perro connect to the ethereum network, and one of the easiest ways is to use your Mist browser.
Mist provides a usuario friendly interfaz and a digital wallet for users to trade and store Ether as well as write, manage, implement and use smart contracts.
There is also the extension metamask, which turns Google plus Google chrome into a browser for Ethereum.
MetaMask allows any usuario to easily run decentralized applications from the browser.
Although it was initially created as a Google chrome complemento, MetaMask supports other browsers as well.
On the Internet there are many platforms that use the ether to process transactions.
You will be able to find platforms with which you perro earn ether and many cryptocurrency exchanges where you cánido get them.
ethereum features
Ethereum has a equipo of characteristics which is important to know.
Below are the main characteristics that ethereum possesses:
- It does not belong to any country or financial institution, and perro be used worldwide.
- It is possible to buy ethers with dollars, euros or other currencies and vice versa.
- There are no intermediaries: Transactions are made from person to person.
- It is decentralized: It is not controlled by any state, bank, financial institution or company.
- It is practically impossible to counterfeit or duplicate it thanks to its system cryptographic.
- Transactions are irreversible.
- It is not mandatory to reveal your identity when doing business and preserve your privacy.
ethereum security
The ethereum cryptographic protocol has enormous security history, and this technology is possibly the largest distributed computing project in the world.
The most common vulnerability it is the usuario’s fault, since the archivos that store the necessary private keys perro be accidentally deleted, lost or stolen.
Despite this, ethereum technology is vulnerable to quantum computing, just like all systems based on cryptography.
However, quantum computing does not exist and will not exist in the near future.
In the event that the quantum computing could become a threat to ethereum, the protocol could be updated to operate on this type of computing.
How do you get ether?
For get ether You must first have an ether wallet in which you perro store the ethers you get.
The ethereum wallets They will provide you with one or more ethers addresses so that you perro receive those ethers in your wallet.
I am going to leave you a equipo of en línea wallets in which you perro register to have a wallet in which you perro receive your ethers.
Below I leave you the backlink of different wallets in which you perro register to save your ethers: Go to the ethers wallets.
Ethers perro be obtained in various ways.
Now they present the main ways to get ethers:
- accepting Payments in this cryptocurrency.
- Buying ether.
- exchanging ethers with someone in your area.
- Earning ethers on different platforms.
While it is possible to find people who want sell ethers in exchange for a payment by PayPal or credit card, most exchange houses do not allow you to use these means of payment.
This is due to cases where a person buys ethers with PayPal and then reverses half of the transaction.
Buy ethereum
On the Internet there are many platforms or companies that allow you to buy ether using credit card, PayPal, among other payment methods.
Here is a backlink to en línea platforms that allow you to buy ethers:
Go to the platforms to buy ethers.
Earn ethers for free
On the Internet there are many platforms or companies that allow you to earn ethers for free, and that you perro receive in your ethers wallet.
Here is a backlink to en línea platforms that allow you to earn free ethers:
Go to the platforms to earn free ethers.
Earn ethers with investments
On the Internet there are many platforms or companies that allow you to earn ethers by investing, and that you cánido receive in your ethers wallet.
Here is a backlink to en línea platforms that allow you to earn ethers by investing:
Go to the platforms to earn ethers by investing.
Conclusion
The ethereum technology is helping to change the way the Internet is used.
The decentralized applications they are driving a huge change from an Internet of Information where information perro be seen, exchanged and communicated instantly and with great power.
As the industry continues to investigate the platforms of block chain, it is important to say that ethereum is becoming a leader in the world of decentralized applications.
The public and private industry He continues to contribute to ethereum and works so that this technology perro reach maturity.
He ether (the ethereum cryptocurrency) is totally based on ethereum technology for its payment system, so if we had to recommend a cryptocurrency that should never be missing, it is ether.
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final words
For God has not given us a spirit of fear, but of power, of love, and of a sound mind. 2 Timothy 1:7.
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