Introduction to Ethereum (ETH) Coin
The world is driving towards a cashless economy where cryptocurrencies are said to be the future of the financial world. Ethereum is one of the cryptocurrencies, written in C++, Go and Rust, known to be the second-largest of its kind as per the market capitalization. Just like any cryptocurrency, Ethereum is used to transfer currencies and making online payments, apart from that it is a programmable currency and can be used to write money controllable codes and can build globally accessible applications. It enables developers to build and deploy decentralized applications. Ether is the crypto token for Ethereum, which fuels the network. Ether also acts as a currency which is used to pay the transaction fees and services on the Ethereum network by application developers. The secondary type of token which is used to pay miner’s fees is called ‘Gas’ for every single transaction. Ethereum has some astonishing features, building ‘Smart contracts’ is one of them. Just like the name, it’s a self-executing contract which handles the enforcement, payment, the management, and performance. A certain amount of ‘Gas’ is required for every execution of ‘Smart Contract’ to be sent along with it to tempt miners to put it in the blockchain.
Vitalik Buterin, the founder of Ethereum published the Ethereum whitepaper in November 2013. In January 2014, its development was publicly announced. The native team of Ethereum had Vitalik Buterin, Anthony Di Iorio, Charles Hokinson and Mihai Alisie. The funding for the development of Ethereum was done by a crowd sale that happened between July and August 2014. Ethereum then went live on July 30, 2015. There were 72 million coins ‘premined’ that accounts for about 68% of the circulating supply in 2019.
Cover Ethereum Coin common issue
As the crypto revolution is rising and gathering international attention, more focus is being cast on the actual use of applications of distributed ledger technology. Ethereum has remarkably made its place in the list of market capitalization. Although there are some issues which are affecting the crypto industry.
Here are the list of the few issues Ethereum is dealing with: –
1. After the introduction of ‘smart contracts’, people tend to approve peace of mind over lower cost and automation. Although, the Ethereum based platforms like Ethereum Classics, Ubiq, callisto, etc are very flexible and propose a means of cutting out the middleman with these trustless transactions, unresolved issues remain which prevent the broadly acceptance of these ‘smart contracts’ in general. Some of the most blazing issues surrounding Ethereum based ‘smart contracts’ are flexibility, security and maintaining confidential transactions on public blockchains.
2. Nowadays, security is the main concern on anyone’s mind while transacting any amount with a technology that is not clearly understood. If you are considering using Ethereum escrow services for your accustomed payments to automate recurring activity over a given timeline, reduce your expenses and still remain competitive in a saturated industry, then you must be certain about the payments made according to the terms of escrow agreement. However, an escrow agent can sort out most of the issues for the escrowing parties based on the conditions of the escrow agreement. If not, then they will refer the case to an arbitrator who can review the facts and issue a binding judgment. In smart escrow, the functions are automated and according to the code, the contract is invoked; which cannot be altered in any vindicating circumstances. Execution of smart contract demands consensus from the network, failing to which it will be not be able to enforce on chain payments, thus reducing the escrow agreement to futility.
3. Most common issue with Ethereum based smart contracts is adaptability. For the contract to be executed, the codes have to fetch the data from the external sources, and bring it back to the network. Each node on the network, have to reach a consensus about the integrity of the data, failing to which; the contract wouldn’t execute.
4. The altering market is a common issue for the Ethereum too. The fluctuation can be seen on a daily basis. Some cryptocurrency holders manipulate the transactions, letting the prices fluctuate.
Pros and Cons of Ethereum Coin
Ethereum is a decentralized platform that runs self-executing contracts written in complete programming languages. Like every other thing on this planet, Ethereum also has some pros and cons to it.
Pros of Ethereum Coin:
1. Ethers will always be needed to execute code on Ethereum, and most projects are built on the top of Ethereum on a daily basis, making it the best long-term potential cryptocurrencies.
2. Ethereum’s founder Vitalik Buterin, frequently gets mentioned in crypto headlines and pilots much of the blockchain network’s clarity. This active participation, in the world of crypto lends a great deal of accountability to his developed network.
3. Ethereum supports elements like blockchain smart contracts and decentralized autonomous organizations (DAOs) earns it a highly functional blockchain to go for. The perfect tokenization, the functionalities that render it useful in fields as diverse as gaming and prediction markets, made Ethereum great.
4. Ethereum is free of responding to regulatory obligations put in place for securities.
5. Ethereum is backed by notable big names in the venture capitalist market such as Union Square ventures, Angelist founder Naval Ravikant, Andreessen Horowitch and Fred Ehrsam, the man who had co-founded leading cryptocurrency exchange coinbase.
Cons of Ethereum Coin:
1. The value of Ether is strapped to the success of Ethereum. It is possible for Ether to be replaced by future blockchain projects having similar attributes.
2. Unlike Bitcoin, whose supply is fixed to 21 million tokens, Ether has no limit on its supply.
3. Ethereum is highly dependent on Buterin’s Fame. This level of dependency on one man might affect Ethereum quite poorly.
4. A long-standing delay in the process is affecting the speed and reputation of the network.
5. The market is emerging with tough competitors, which are basically doing what altcoins did to Bitcoin. They are strengthening themselves by learning from Ethereum’s flaws. Neo coin is already being called as “Ethereum Killer”.
How to Sell Or Buy Ethereum Coin
Before you can trade Ether, you’ll need a place to store it. In terms of cryptocurrency tribe, that place is called a wallet. Basically, it is a piece of software that allows you to store your funds, check your balance whenever you need to and conduct transactions. Point to note, Ethereum wallets do not work like conventional wallets.
The most conventional and popular way of purchasing Ether is through an exchange. As Ether is the second most valued, stable and well-known cryptocurrency hence, finding an online exchange that trades Either within your jurisdiction won’t be a difficult task.
The first task is to register with an exchange. Before registering, make sure that it operates in your country. The registration requires few general personal details. After passing all the necessary checks, you’ll be required to choose a deposit method. This includes bank wire transfers, credit/debit card payments, SPEA or PayPal payments. A nominal deposition fee is charged by the exchange, which depends on the method of depositing. As soon as the funds are in your exchange account, start your trading. You’ll get all the valuable information, such as current value, market capitalization and related news through the exchange.
There is an alternate method of buying Ether, which is Ethereum ATM. It is an ideal way to obtain Ether for users looking to buy in small amounts. As ATM transactions are relatively small so there is no need to for full identification. You’ll need a wallet to transact through Ethereum ATM. After acquiring wallet, you will need to locate the nearest ATM that facilitates Ether. There is a service called ‘coin ATM radar’, which provides a list and a map of cryptocurrencies ATMs. The next step after locating the ATM, hold up the QR code in your wallet to the machine’s camera to scan it. Then, insert cash into the ATM and confirm the amount of Ether you want to purchase. The purchased Ether will be sent to your provided address. However, it generally takes 30 minutes for the transaction but it may take up to several hours in some cases.
Once you’ve purchased Ether, there must be a time when you’ll decide to sell it. The process is similar to buying Ether. Find an exchange which works in your country’s jurisdiction, you’ll be required to connect your existing bank account and provide some additional information. Once you’re all set, you’ll be required to choose whether you want to sell your Ether for fiat currency or trade it for another cryptocurrency.
Is Ethereum Coin safe for investment/ or legal approved
Questioning whether Ethereum is secure is like asking if computers are secure. In the end, Ethereum is a blockchain like Bitcoin. The biggest security threat to Ethereum happened in May 2016. It was named as the DOA hack. Ethers worth millions of dollars were stolen from the Decentralized Autonomous Organization (DOA). However, the repair of this hack involved a change in the software which made it incompatible with the original version; resulting in splitting the Ethereum into Ethereum and Ethereum Classic.
However, this DOA hack did not harm Ethereum blockchain at all. The focused impact was on DOA smart Contract running on it.
Nowadays, Ethereum is known as one of the safest cryptocurrencies in the world.
The legal way of procuring Ether is to buy it from a valid exchange or Ethereum ATM. Consider the jurisdictions of your country before buying the Ether. Cryptocurrencies are legal in the United States of America, Canada, and Europe. However, India, Russia, and China have prohibited dealing in cryptocurrencies. Buyers are therefore advised to do their homework on their country laws before investing their money in these cryptocurrencies.