Eth who is who

Again, it might be more accurate to think of Ethereum as a token that powers various apps rather than as merely a cryptocurrency that allows users to send money to each other. As of October , there were about million ether in existence. That contrasts sharply to Bitcoin, where a maximum of 21 million coins can be mined and new issuance becomes harder each year. And it contrasts still further with Dogecoin, where issuance is completely unlimited.

They perform mathematical calculations that effectively unlock coins or fractions of coins. That setup is changing, however. The new system makes it difficult for miners to generate new coins. Ethereum has risen significantly over the last few years, so those who bought-and-held years ago have done well.

And on this basis, those who buy Ethereum are buying a cryptocurrency that is not backed by any hard assets or cash flow. A stock is a fractional ownership in a business, so its performance over time is due to the ongoing success of that business.

If the business grows its profit, its stock is likely to follow that growth over time. Stockholders have a legal ownership stake in the assets and cash flow of that business.

In contrast, Ethereum — and most other popular cryptocurrencies — are backed by nothing at all. Speculation is the only thing driving Ethereum and other cryptos higher. The profit calculus is simple, too: You profit when you sell coins for more than you paid. That is, you want to earn coins that are worth more than you paid to mine them.

Speculators can invest in cryptocurrencies such as Ethereum directly, but they can also invest in the companies that may profit from a move toward digital currencies. Investors should take a measured approach with cryptocurrency, given its volatility and many risks. Those who are looking to get a taste of the action should not invest more than they can afford to lose.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. How We Make Money. Editorial disclosure. James Royal.

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Ethereum is often referred to as the second most popular cryptocurrency, after Bitcoin. But unlike Bitcoin—and most other virtual currencies—Ethereum is intended to be much more than simply a medium of exchange or a store of value.

Instead, Ethereum calls itself a decentralized computing network built on blockchain technology. Like all cryptocurrencies , Ethereum works on the basis of a blockchain network.

A blockchain is a decentralized, distributed public ledger where all transactions are verified and recorded. Blockchain transactions use cryptography to keep the network secure and verify transactions. Participants are rewarded with cryptocurrency tokens.

Ether can be used to buy and sell goods and services, like Bitcoin. These applications can store and transfer personal data or handle complex financial transactions. You can use Ether as a digital currency in financial transactions, as an investment or as a store of value. Ethereum is the blockchain network on which Ether is held and exchanged.

As mentioned above, however, this network offers a variety of other functions outside of ETH. The transactions are processed and stored on the Ethereum network. The Ethereum network can also be used to store data and run decentralized applications. Rather than hosting software on a server owned and operated by Google or Amazon, where the one company controls the data, people can host applications on the Ethereum blockchain.

Perhaps one of the most intriguing use cases involving Ether and Ethereum are self-executing contracts, or so-called smart contracts. Like any other contract, two parties make an agreement about the delivery of goods or services in the future. Ether also works as a virtual currency and store of value, but the decentralized Ethereum network makes it possible to create and run applications, smart contracts and other transactions on the network.

Ethereum also processes transactions more quickly. And future developments could speed up Ethereum transactions even more, he notes. Help us translate the latest version. A wallet lets you connect to Ethereum and manage your funds. ETH is the currency of Ethereum — you can use it in applications. Dapps are applications powered by Ethereum. See what you can do. If you want to start coding with Ethereum, we have documentation, tutorials, and more in our developer portal.

The latest price for 1 ether. You can buy as little as 0. Ethereum 2. See how Ethereum can open up new business models, reduce your costs and future-proof your business. Ethereum is all about community.

It's made up of people from all different backgrounds and interests. See how you can join in. This website is open source with hundreds of community contributors. You can propose edits to any of the content on this site, suggest awesome new features, or help us squash bugs.

Help update this page. Translate page. See English. What is ether ETH? Use Ethereum. Search away! Get started ethereum.