Ethereum: is an open source public platform that provides the creation of decentralized, online services based on smart contracts. The platform is decentralized, based on virtual machines on blockchain technology. Ethercoin (ETH) is its token used as a fuel for operating on the platform. The issuance of Ethereum and the basic principles of Bitcoin are very different. It is issued through block mining at an annual linear rate. This ratio is the total amount of pre-sold ETH*0.3. Ethereum is a network-wide platform with the proven advantages of blockchain. Compared to Bitcoin, each Ethereum transaction not only stores changes in value but also has code that has some logic or condition to execute the transaction. It makes the system very flexible. For example, if you want to buy a mobile phone, you can connect to the smart coupon code of the mobile phone seller database, as well as the wallet/account. The platform will see the transaction executed and both the buyer and the seller will receive the transaction confirmation (ie money and mobile). But please note that the payment here is not necessarily Ethereum.

Creation of Ethereum Unlike Bitcoin, Ethereum is backed by real people. This person is VitalikButerin, known as V God. He led the development of Ethereum and continued to improve the platform. He is a celebrity in the blockchain and digital currency. The Ethereum white paper was released in 2013 and officially announced at the 2014 North American Bitcoin Conference in Florida, USA. This project has been widely accepted, and V God and his team have created a non-commercial organization called the Ethereum Foundation, whose mission is to “promote and support the Ethereum platform and its underlying development, development and education, And introduce decentralized protocols and tools to the world, inspiring developers to develop the next generation of decentralized applications (dapps). The project raised funds and issued tokens in July 2014. The platform was launched in 2015 and will be fully operational in 2016 with the introduction of the Homestead agreement.

Solution: The main selling point of Ethereum is the self-executing smart contract. In a very simple way, the smart contract executes the code of if-then. If (<if condition>) { // execute these statements, if <if condition> is TRUE (true) } Elseif ( <other, another condition>) { // execute these statements if <if another condition> is TRUE (true) and //<condition> is FALSE (false) } If condition if condition: Expression expression Elifcondition: Expression

Else: Expression The code is C++ and Python. The Ether Square uses more of the Solidity language. I won't go into details here on how to create smart contracts. Let's take a look at how smart contracts work. In the example of buying a mobile phone we mentioned above, please note that you are buying in cash or French/digital currency instead of ETH!), when the seller receives a pre-determined digital currency or legal currency from you, he You will receive an automatic confirmation and ship it to you. Ethereum serves as a platform to provide the platform for this task and also provides the highest functionality. Using smart contracts, the platform supports transactions and even legal procedures in the digital world. Now that you have received your phone, you want to insure it. Again, this action can be done automatically and automatically using smart contracts without the need for a third party. In general, we can immediately see its potential in the legal, insurance, financial and other industries. It can be faster, cheaper, more transparent, more efficient, and more secure than traditional systems.

Advantage: The main advantage of Ethereum is its flexibility, and the system can be easily upgraded or updated. The platform is global and supports different languages ​​and algorithms. Another highlight is its leader V God. V God defines the project as: “Ethereum is a decentralized platform for running smart contracts: applications can run in accordance with pre-edited programs, no disconnection time, no centralized leadership, fraud or third-party intervention.”

Disadvantage: The main problem with Ethereum is capacity expansion, and the system is not running very fast (about 20 transactions per second). Second is the human error, that is, smart contracts cannot be perfectly designed (such as DAO hackers). The next focus is that Bitcoin has a fixed total supply of BTC of 210 billion (block rewards are halved every four years), while the circulation of Ethereum is 18 million per year. That is to say, BTC is a deflationary currency, while ETH is inflationary. Maybe some people don't think this is bad, it varies from person to person.

The Ethereum team believes that: “According to the terms agreed by all parties in the pre-sales in 2014, the annual issuance of Ethereum is 18m (this figure is equivalent to 25% of the initial supply). This means that the full circulation is fixed and the relative inflation is reduced every year. In theory, this circulation is originally kept infinite, but at some point, the ratio of SGD created each year will reach the average of the number of lost each year (misuse, accidental loss of private key, holder death, etc.) The number will eventually reach equilibrium."

Fundraising In the 2014 fundraising pre-sale, Ethereum raised 31,591 BTCs (based on the price of the day, totaling an additional $18,439,086) to purchase ETH 60,102,216.

Price impact Before we begin to look at the main factors driving the value of the drive, let us first look at the overall situation of Ethereum in the period of 2014, 2016-2017 (prosperous period) and 2018 (correction/fall). Many people believe that the soaring digital currency can be attributed to the growth of the Ethereum platform. The Ethereum platform helps many new projects build on them, all of which raise funds and directly or indirectly increase the total market value of the overall digital currency. From the timing, it is more coincidental. It was released at Homestead, starting with Ethereum, and fundraising was hot, and most of the fundraising was based on Ethereum. Now, after the price correction, investors look forward to the value of the Eric's Serenity and the subsequent release of Metropolis. The price technical chart cannot determine the fate of ETH on a fundamental basis. Serenity plans to solve the expansion problem (from PoW to PoS to reduce costs and support for the network), and reduce the risk of attack by 51%. The important milestones of Serenity and Metropolis are the decision. The main factor in the value of ETH.

Another major factor is the behavior of market participants, which will greatly determine the direction of the ETH and digital currency markets. In the current situation, the price of ETH is about $113.55, and the market value is $11.8b, which ranks third. As a typical long-term holder, the main and first concern of Ethereum is the current and future use of the platform. The return (strictly speaking, price increase) is linearly adjusted between the underlying infrastructure and development growth in the ecosystem.

Competitor

Many people use Ethereum and Bitcoin as competitors. In fact, this is not all right. Ethercoin is the digital currency in the Ethereum ecosystem, which is the token (or fuel) for smart contracts, and the main function of Bitcoin is as a payment method. Ethereum is just an "internal currency." Ethereum is far more flexible than Bitcoin: for example, with regard to the consensus mechanism, Bitcoin uses a work certification agreement, and Ethereum turns into a proof of equity. In general, it is much easier to change Ethereum. Another difference is the block time, which is the time the miner finds the solution and writes (generates) the next block. Bitcoin's block generation time is 10 minutes, while Ethereum is between 10 and 19 seconds, processing transactions much faster than Bitcoin. Other major competitors of Ethereum include NEO, Cardano and EOS Ethereum's avatar People who invest in Ethereum can also focus on EOS and Neo & Cardano.

Ethereum has an absolute higher value and a smaller advantage - expansion, but the strength of Ethereum is that it is already a very flexible platform available, a huge community, a strong project and user base, and less risk. But EOS also has its advantages: Advance tangible progress, speed and efficiency of problem solving. The strength of NEO is that it has a strong relationship with the local market, including regulation, which is very important for the Chinese market. Cardano has a very interesting roadmap, relatively high risk/potential, and a longer holding/investment area.