What is Ether?

What is Ether?

How does Ethereum work? Should I buy Ether? 2019

Ether is a cryptocurrency, very similar to (and currently in direct competition with) bitcoin.

However, unlike bitcoin, Ether’s value is not directly related to financial metrics, and is instead based on computing power. This computing-power basis sets Ether apart from bitcoin, largely because it is not meant to function as a global digital currency (at least, not in the way the same way that a standard cryptocurrency like bitcoin is positioned, which is as a general-useage currency).

How do cryptocurrencies work?

Cryptocurrency differs from traditional money, insofar as every ‘trade’ is done online and recorded by online systems. ‘Miners’ – i.e., those users who employ online software to record, monitor and accumulate cryptocurrencies – consist of hundreds of thousands of people, scattered across the globe. ‘Blockchains’ are the digital addresses of these cryptocurrencies. These blockchains store the information of each exchange of cryptocurrency. These blockchains are what makes the exchange of bitcoins and Ether possible.

Users of Ether, or Ethereum as it is also known, receive CPU power for using Ethers’ web of applications.

The goal of Ether is to create device-to-device communication. Theoretically, all of an individual’s home devices could be blanketed by Ether in a network of code, in order to reduce the costs of computing; minimize the size of operations; and ensure a stakeholder’s privacy in the future while simultaneously increasing the longevity of devices.

History of Ether / Ethereum

Ethereum as a company made $18 million just for the presale of Ether token in 2014, before first launching in beta during July 2015. While this presale was called ‘crowdfunding’ by Ethereum, many believe that it resembled an initial public offering (IPO).

This informal initial public offering (that relied on donations) was the accelerating force that created the initial supply of (and rate of issuance) of Ether tokens.

Ether has a management team based in London, but also has 30 developers in both Amsterdam and Berlin. Ether believes that they are creating a financial foundation for the Internet ‘twenty years from now’.

What apps and platforms currently use Ether?

Some apps currently used through Ether are ridesharing applications; applications designed to place bets on certain sports,;and investment schemes; amongst other applications. While Ethereum has a public blockchain, it also allows the possibility of corporations setting up their own private blockchains (a process that would allow them to not have to use the token currency Ether that Ethereum runs on).

Ether Security and Price Volatility

Since Ether’s software is only in its inception with just a few years in the market, many wonder about the fundamental security of Ether’s platform. Since Ether has faced far fewer attacks than bitcoin has, it has also, inevitably, had less rigorous security testing and evaluation conducted than bitcoin. Additionally, price volatility over Ether remains a major concern for many investors.

Investor Interest and Institutional Support for Ether

However, despite some weariness from investors, Ether is proving to be quite the contender with big name corporations. Microsoft, JPMorgan and Intel have even formed an Ethereum Enterprise Alliance. These aren’t the only players in the Alliance, though. In fact, there are currently thirty financial services and technology partners that intend to build a blockchain founded on Ethereum.

While Ethereum may not be as big as bitcoin (at least, to date), it is definitely making major waves in the financial and corporate communities, and is a new form of currency that should definitely be looked as an up-an-coming contender – a potentially revolutionary cryptocurrency in an increasingly-crowded field of digital currency offerings.

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