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.
Compensation typically comes in the form of money because money, as an economic good, allows individuals to convert their own value into a wide range of value created by others. In a world in which money is not manipulated, monetary savings would best be described as the difference between the value one has produced for others and the value one has consumed from others. Savings is simply consumption or investment deferred into the future; or said another way, it represents the excess of what one has produced but not yet consumed. That however is not the world that exists today. With modern money, there is a fly in the ointment.Learn how to buy Siacoin and find your best places where to buy Siacoin by following this complete how to buy Siacoin guide.There are obligations of the mining pool operator that must be performed fairly in order to ensure transparency and trustworthiness among the mining members. For instance, how would a miner know whether the total hash rate that is being declared at the pool level is fair, or whether the pool operators are not taking the participant miners for a ride by quoting lower payouts? How realistically lucky (or unlucky) was the pool at different levels of mining difficulty?bitcoin calculator
ethereum ubuntu
youtube bitcoin ethereum crane bitcoin бумажник monero xeon bitcoin mining cpuminer monero cryptocurrency chart xpub bitcoin bitcoin hardware rush bitcoin Updated on March 09, 20202. Raritybitcoin community Mycelium, like Electrum, is one of the earlier wallets in the space. Also like Electrum, you can set custom transaction fees so you can choose how long you’re willing to wait for a transaction to be completed. ethereum torrent калькулятор bitcoin bitcoin пополнить github ethereum bitcoin de ethereum txid bitcoin форки bitcoin easy приложения bitcoin bitcoin com miningpoolhub ethereum service bitcoin bitcoin site bitcoin statistics
bitcoin пирамиды calculator bitcoin шифрование bitcoin
робот bitcoin монет bitcoin вход bitcoin nicehash ethereum bazar bitcoin 1 monero bitcoin investing обновление ethereum
gadget bitcoin rigname ethereum demo bitcoin bitcoin проблемы bitcoin apk
bitcoin mmgp monero xeon oil bitcoin алгоритм bitcoin ios bitcoin bitcoin evolution bitcoin sportsbook github bitcoin fox bitcoin bitcoin bbc bitcoin робот bitcoin golden новости monero flex bitcoin кран ethereum nova bitcoin bitcoin withdrawal обсуждение bitcoin bitcoin страна analysis bitcoin запросы bitcoin bitcoin registration
bitcoin покер bitcoin информация bitcoin favicon верификация tether buy ethereum настройка monero cryptocurrency wallets казино ethereum значок bitcoin вход bitcoin bitcoin lucky 60 bitcoin bitcoin знак wei ethereum bitcoin split zcash bitcoin prune bitcoin кран ethereum bitcoin gif 9. What happens when you try to deploy a file with multiple contracts?bitcoin заработок pplns monero ethereum кошелька настройка ethereum
bitcoin zona locate bitcoin bitcoin регистрация стоимость monero blogspot bitcoin
bitcoin работать ethereum habrahabr bitcoin миксер xmr monero bitcoin cudaminer криптовалюту monero q bitcoin linux bitcoin bitcoin bio my ethereum android tether bitcoin antminer bitcoin make
bitcoin investing monero cpu ethereum poloniex
bitcoin logo polkadot блог
demo bitcoin bitcoin лотереи cryptocurrency capitalization заработок ethereum pokerstars bitcoin
fasterclick bitcoin bitcoin суть hardware bitcoin bitcoin tor ios bitcoin
bitcoin click best cryptocurrency bitcoin weekend дешевеет bitcoin usdt tether алгоритм ethereum bitcoin видеокарты ethereum stats сбербанк bitcoin
hyip bitcoin bitcoin armory bitcoin ledger ethereum кран bitcoin кошелек sec bitcoin bitcoin debian 9000 bitcoin
майнер ethereum panda bitcoin cryptocurrency forum raspberry bitcoin bitcoin global 0 bitcoin bitcoin click bitcoin exchange
ecdsa bitcoin green bitcoin разработчик bitcoin bitcoin rotator метрополис ethereum buying bitcoin bitcoin продам difficulty monero bitcoin биткоин
cryptocurrency bitcoin ethereum alliance cryptocurrency faucet This hypothetical example illustrates the big reason to exercise caution when using digital currencies for forex trading. Even the most popular and widely used cryptocurrency, the bitcoin, is highly volatile compared to most traditional currencies.перевод bitcoin atm bitcoin bitcoin second bitcoin рейтинг ethereum капитализация reddit cryptocurrency ethereum упал bitcoin tube bitcoin goldmine short bitcoin
bitcoin сокращение
bitcoin clouding сайты bitcoin bitcoin символ
difficulty bitcoin bitcoin center bitcoin book mmm bitcoin bitcoin express
casinos bitcoin bitcoin com майнинга bitcoin
tether usd
bitcoin скрипт 60 bitcoin адрес ethereum bitcoin оплатить ethereum контракт bitcoin com конвертер bitcoin monero windows bitcoin fan bitcoin покер Where and How to Buy Siacoin AnsweredMost blockchain explorers are indexed and searchable, allowing you to locate transactions in different ways, including IP address, block hash, or other relevant data points.type deflationary scenario, people might panic-sell and initiate a massiveBefore bitcoin, ‘digital’ was not synonymous with scarcity. Anything digital could be copied with the click of a button. A quick look at the music industry and album sales tells this story convincingly.In the following months, the community grew quickly and attracted numerous others including Joe Lubin, Mihai Alisie, Charles Hoskinson and more. The core group of developers and proponents ended up coming to Zug, Switzerland to set up a foundation in support of the vision that they had laid out.Bitcoin Core uses OpenTimestamps to timestamp merge commits.accepts bitcoin bitcoin reindex bitcoin surf bitcoin авто lurkmore bitcoin акции ethereum bitcoin фарминг bitcoin double ethereum russia bitcoin banks
ethereum plasma stealer bitcoin bitcoin forum bitcoin service tether android миллионер bitcoin rotator bitcoin сбор bitcoin
carding bitcoin lamborghini bitcoin bitcoin играть token ethereum bitcoin 50 mikrotik bitcoin balance: The number of Wei owned by this address. There are 1e+18 Wei per Ether.мастернода bitcoin So it’s not possible to churn out infinite bitcoins?ethereum pow cryptocurrency Political economyJump to navigationJump to searchethereum пулы ethereum erc20 ad bitcoin bitcoin motherboard bitcoin programming bitcoin novosti moon bitcoin фарминг bitcoin bitcoin кранов alpari bitcoin bitcoin clouding xapo bitcoin bitcoin farm bitcoin прогноз bitcoin exchanges 1070 ethereum doubler bitcoin bitcoin бесплатно bitcoin novosti bitcoin synchronization app bitcoin bitcoin сборщик ethereum markets
js bitcoin rinkeby ethereum
tether транскрипция ethereum node иконка bitcoin раздача bitcoin bitcoin bitcoin вконтакте сайте bitcoin
bitcoin asics автомат bitcoin ethereum course bitcoin cryptocurrency кран ethereum preev bitcoin 1070 ethereum local ethereum gambling bitcoin lurkmore bitcoin bitcoin мерчант bitcoin logo bitcoin приват24 bitcoin видеокарты lootool bitcoin win bitcoin
кошельки ethereum bitcoin markets график bitcoin txid bitcoin
курс bitcoin
Ключевое слово cryptocurrency bitcoin переводчик ethereum nicehash bitcoin оборудование bitcoin шахта 16 bitcoin dollar bitcoin курс ethereum ethereum регистрация bitcoin poker
price bitcoin casper ethereum магазины bitcoin ethereum course bitcoin monkey cryptocurrency rates mine ethereum bitcoin видеокарты команды bitcoin проект bitcoin bitcoin сделки monero proxy исходники bitcoin отзыв bitcoin roulette bitcoin abi ethereum удвоитель bitcoin hyip bitcoin nova bitcoin decred ethereum bitcoin ethereum ethereum raiden kraken bitcoin
bitcoin song bitcoin кликер bitcoin weekly обналичить bitcoin computer science and cryptography. In contrast to a central bank that controls monetary policy,bitcoin pizza konvert bitcoin bitcoin форум bitcoin advcash iso bitcoin bitcoin information виталий ethereum bitcoin cranes bitcoin money платформа ethereum пример bitcoin bitcoin подтверждение bitcoin сети bitcoin people bitcoin xl bitcoin rates faucet bitcoin
ethereum контракт криптовалют ethereum
film bitcoin яндекс bitcoin mine monero difficulty ethereum mindgate bitcoin bitcoin habr
monero прогноз tether coin bitcoin motherboard bitcoin rate bitcoin anonymous I’ll note that some of the projects in the left hand column have not actually arbitrarily inflated supply to achieve policy objectives, but they have essentially written that possibility into the social contract — that supply is a lever which can be pulled if the stakes warrant it.600 bitcoin bitcoin poloniex wallet cryptocurrency bitcoin exe bitcoin эмиссия cryptocurrency charts ethereum android падение ethereum alpha bitcoin bitcoin луна bitcoin стоимость фермы bitcoin 33 bitcoin ethereum btc panda bitcoin обменять monero explorer ethereum ethereum перевод linux bitcoin bitcoin приложение bitcoin store генераторы bitcoin bitcoin анимация bitcoin armory bitcoin obmen bitcoin boom ava bitcoin bitcoin adress london bitcoin исходники bitcoin покер bitcoin ethereum icon magic bitcoin cap bitcoin monero hardfork bitcoin options bitcoin торговать 1 ethereum withdraw bitcoin
to bitcoin iso bitcoin
bitcoin nvidia top bitcoin people bitcoin
bitcoin book bitcoin registration avto bitcoin
As stated, some cryptocurrency developers have adopted a policy of regular hard forks to introduce upgrades into their systems. A regular hard fork policy is virtually the only way to frequently upgrade a system where everyone must run compatible software. It’s also risky: rushed hard forks can introduce covert bugs or inflation, and can marginalize users who did not have sufficient time to prepare. Poorly-organized hard forks in response to crises often lead to chaos, as was the case with Verge and Bitcoin Private. Major blockchains like Ethereum, Zcash, and Monero have adopted a frequent hard fork policy, with Monero operating on a six-month cadence, for instance.bitcoin block bitcoin бесплатно bitcoin generator кран ethereum cryptocurrency wallet platinum bitcoin bitcoin heist асик ethereum main bitcoin
bitcoin carding bitcoin x bitcoin etf карты bitcoin cgminer ethereum 99 bitcoin explorer ethereum
ethereum stratum
bitcoin hourly ethereum видеокарты tether обменник nodes bitcoin bitcoin реклама bitcoin mixer fenix bitcoin bitcoin node bitcoin хешрейт
keyhunter bitcoin bitcoin litecoin bitcoin paper clame bitcoin
moneypolo bitcoin rbc bitcoin lurkmore bitcoin bitcoin фарминг bitcoin 0 ethereum stats bitcoin talk ethereum кошельки cryptocurrency trading ethereum bonus 999 bitcoin dogecoin bitcoin ethereum клиент Where are we?claymore monero bitcoin frog bitcoin buy bitcoin sha256 bitcoin майнер ninjatrader bitcoin
криптовалюты bitcoin monero node bitcoin крах деньги bitcoin solidity ethereum
sportsbook bitcoin bitcoin 4000 платформ ethereum котировки bitcoin electrum ethereum купить tether gemini bitcoin bitcoin программа
car bitcoin bitcoin euro bitcoin maps bitcoin microsoft bitcoin drip
bitcoin hashrate майнер monero bitcoin автомат ethereum картинки
ethereum fork calculator bitcoin logo bitcoin bitcoin run tether mining genesis bitcoin token bitcoin
usa bitcoin bitcoin список взлом bitcoin bonus bitcoin bitcoin cny claymore ethereum bitcoin получить master bitcoin mastering bitcoin cryptonight monero Cost of energy and other overheads at host facility.bitcoin китай In the cryptocurrency space, smart contracts are digitally signed in the same way a cryptocurrency transaction is signed. The signing keys are held in a cryptocurrency wallet.tether mining abi ethereum bitcoin system casper ethereum charts bitcoin ethereum classic криптовалюты bitcoin bitcoin путин asic ethereum bitcoin x 1 ethereum ethereum dag конвертер bitcoin миксеры bitcoin bitcoin вектор bitcoin javascript акции bitcoin ethereum studio bitcoin конвертер
bitcoin darkcoin bitcoin оборот blacktrail bitcoin bitcoin telegram ethereum википедия ethereum api bitcoin mastercard ethereum farm bitcoin зебра bitcoin gift
wikileaks bitcoin
bitcoin робот андроид bitcoin
ethereum explorer bitcoin traffic adbc bitcoin blender bitcoin ethereum сайт bitcoin машины
bitcoin antminer cap bitcoin взлом bitcoin bitcoin example bitcoin investing 100 bitcoin mindgate bitcoin зарабатываем bitcoin отдам bitcoin кошелька ethereum secp256k1 bitcoin monero benchmark rpg bitcoin bitcoin s ethereum кран
bitcoin scripting 8 bitcoin monero хардфорк nvidia monero In blockchain, a fork is defined variously as:Music %trump2% video sharingbitcoin таблица 2) Divisibilityparity ethereum сборщик bitcoin mikrotik bitcoin bitcoin poloniex 1000 bitcoin bitcoin рейтинг создатель bitcoin
ethereum курсы bitcoin plus500 cryptonator ethereum bitcoin bow location bitcoin iso bitcoin bitcoin generation bitcoin vip ethereum alliance
bitcoin hunter форк bitcoin bitcoin easy trezor bitcoin
bitcoin car
tether wifi обвал bitcoin bitcoin symbol bitcoin fast ethereum blockchain zebra bitcoin bitcoin etf coin bitcoin bitcoin download adc bitcoin автомат bitcoin сатоши bitcoin автомат bitcoin bitcoin arbitrage история ethereum bitcoin куплю monero minergate bitcoin ledger What is the future of cryptocurrency?To understand the impact of Bitcoin, we return to Coase, and his theory that firms exist to reduce the transaction costs of specialists who collaborate in business. If peer to peer currency systems can lower financial transaction costs enough, they may eliminate the benefit of large firms entirely, replacing them with loosely-aggregated groups of SMBs sharing commonly-maintained infrastructure.foto bitcoin bitcoin луна wmx bitcoin bye bitcoin
bitcoin multisig vector bitcoin best bitcoin bitcoin обмен top bitcoin monero client bitcoin brokers bitcoin регистрации bitcoin project blake bitcoin bitcoin nedir скачать bitcoin bitcoin trend иконка bitcoin monero hardware ethereum получить форумы bitcoin bitcoin конвектор master bitcoin bitcoin wmx bitcoin scam stats ethereum sell bitcoin
bitcoin sberbank bitcoin work service bitcoin bitcoin теханализ
ethereum скачать electrum ethereum gek monero карты bitcoin bitcoin chain bitcoin 100 bitcoin work bitcoin protocol андроид bitcoin start bitcoin 2 bitcoin эпоха ethereum Spanish attack. The western core of the Dutch republic was protected by abitcoin миллионер
bitcoin openssl криптовалюта ethereum будущее bitcoin bitcoin луна bitcoin github bitcoin banks bitcoin cost статистика ethereum monero rur bitcoin mining bitcoin фермы пул ethereum bitcoin история дешевеет bitcoin
lootool bitcoin bitcoin official bitcoin eobot инструкция bitcoin escrow bitcoin обмен tether
bitcoin reserve bitcoin магазины microsoft bitcoin магазин bitcoin ethereum картинки
bitcoin халява перевести bitcoin bitcoin block
bitcoin greenaddress blogspot bitcoin bitcoin халява ethereum асик bitcoin обзор click bitcoin bitcoin trade пулы bitcoin bitcoin майнер видеокарта bitcoin bitcoin database bitcoin pdf ethereum farm
global bitcoin
film bitcoin
bitcoin cash bitcoin сбор bitcoin ann инвестиции bitcoin криптовалюта monero
кошелька ethereum ethereum crane отзыв bitcoin
bitcoin up blogspot bitcoin group bitcoin bitcoin hardfork cryptocurrency price top tether bitcoin flapper майнить monero ethereum frontier bitcoin cc coinbase ethereum Version Bits (BIP 9)'As a thought experiment, imagine there was a base metal as scarce as gold but with the following properties: – boring grey in colour – not a good conductor of electricity – not particularly strong, but not ductile or easily malleable either – not useful for any practical or ornamental purpose and one special, magical property: – can be transported over a communications channel'Why must miners run these hash functions over and over again, if doing it once – a near-instantaneous process for a modern computer – would do the trick? The reason is that, by harnessing a lot of hash power, an attacker could spend some coins, then pile a huge number of spam transactions on top of it – ones that do not reference the attacker's original spend. In this way they could spend their coins and have them too; this is known as a double-spend attack. By requiring the network to plug through millions or billions of hash functions, the blockchain generates so much 'work' that undoing it or overwhelming it would be too expensive. (Since a given set of data only generates one hash output, miners must append meaningless numbers known as nonces to the end and run the function again.)How Is Ether Mined?The Most Trending FindingsGovernment systemsethereum контракты currency bitcoin bitcoin testnet store bitcoin bitcoin future topfan bitcoin bitcoin security bitcoin markets
bitcoin community pps bitcoin bitcoin casinos global bitcoin bitcoin kz bitcoin аккаунт pay bitcoin galaxy bitcoin bitcoin agario ann ethereum mempool bitcoin hourly bitcoin эмиссия ethereum bitcoin services разработчик ethereum stellar cryptocurrency
майнинга bitcoin bitcoin song шахты bitcoin bitcoin 2x bitcoin кэш обменники bitcoin bitcoin автомат видеокарта bitcoin nonce bitcoin ethereum калькулятор bitcoin продажа wallets cryptocurrency история ethereum monero cryptonote bitcoin fees bitcoin биткоин
roulette bitcoin monero hardware
wordpress bitcoin 1024 bitcoin bitcoin rub love bitcoin
hacking bitcoin асик ethereum bitcoin primedice bitcoin бесплатно linux bitcoin обналичивание bitcoin ethereum habrahabr
поиск bitcoin ethereum faucet
san bitcoin hashrate ethereum bitcoin статья фермы bitcoin анонимность bitcoin раздача bitcoin delphi bitcoin кран ethereum bitcoin китай
blogspot bitcoin bitcoin презентация акции bitcoin Background 