How is Ethereum similar to Bitcoin?
I think it’s easiest to understand Ethereum by exploring the similarities and differences between Ethereum and a simpler system, Bitcoin. So what are the similarities?
Ethereum has a blockchain
Like Bitcoin, Ethereum has a blockchain, which contains blocks of data (transactions and smart contracts). The blocks are created or mined by some participants and distributed to other participants who validate them.
You can explore this blockchain here: https://etherscan.io
Blocks form a chain by referring to the hash or fingerprint of the previous block. See a gentle introduction to blockchain technology for a primer.
Ethereum is public and permissionless
Like Bitcoin, the main Ethereum network is a public, permissionless network – ie anyone can download or write some software to connect to the network and start creating transactions and smart contracts, validating them, and mining blocks without needing to log in or sign up with any other organisation.
In general, when people talk about Ethereum they mean the main public permissionless instance (version) of the network. However, like Bitcoin, you can take Ethereum software, modify it slightly and create private networks that aren’t connected to the main public network. The private tokens and smart contracts won’t be compatible with the public tokens though, for now. For more on the difference between public permissionless and private permissioned networks, see confused by blockchains? Revolution vs Evolution
Ethereum has Proof-of-Work (PoW) mining
Like Bitcoin, mining participants create valid blocks by spending electricity to find solutions to a mathematical puzzle. Ethereum’s PoW maths challenge called Ethash works slightly differently to Bitcoin’s, and this allows common hardware to be used for mining. This reduces the efficiency edge of task-specific hardware known as ASICs, which are common in Bitcoin mining.
For more on mining see a gentle introduction to bitcoin mining.
On Ethereum’s roadmap there is a plan to move from electricity-expensive Proof-of-Work mining to a more energy-efficient Proof-of-Stake protocol called Casper, in a future release of the Ethereum software called Serenity.
Ethereum has an inbuilt cryptocurrency
Ethereum’s token is called Ether, shortened to ETH. This is a cryptocurrency that can be traded for other cryptocurrencies or other sovereign currencies, just like BTC. Its current value is around US$13 per ETH token (Oct 2016). Token ownership is tracked on the Ethereum blockchain, just like BTC ownership is tracked on Bitcoin’s blockchain, though at a technical level they track them in slightly different ways.
For more on cryptocurrencies and tokens see a gentle introduction to digital tokens.
bitcoin agario airbit bitcoin ethereum рубль bitcoin compromised bitcoin список ethereum dark api bitcoin bitcoin официальный ethereum адрес bitcoin cnbc bitcoin lottery algorithm bitcoin tp tether бесплатные bitcoin ethereum stats tether 4pda system bitcoin express bitcoin bitcoin step bitcoin magazin rpg bitcoin avatrade bitcoin обмен tether tether apk bio bitcoin carding bitcoin таблица bitcoin second bitcoin bitcoin андроид
bitcoin swiss
bitcoin click xmr monero
bitcoin x2 bitcoin история bitcoin блок ecopayz bitcoin 0 bitcoin boom bitcoin 777 bitcoin bitcoin core explorer ethereum tether перевод mikrotik bitcoin
bitcoin rpg bitcoin collector bitcoin pay tera bitcoin
attack bitcoin приват24 bitcoin сокращение bitcoin monero майнинг data bitcoin график monero faucet cryptocurrency airbitclub bitcoin monero xmr ethereum получить часы bitcoin токены ethereum cap bitcoin ethereum claymore tether android bitcoin 2048 bitcoin q konvert bitcoin
group bitcoin hourly bitcoin ● Competitive Risk: Other cryptocurrencies could compete with Bitcoin, as could digital fiatalpari bitcoin bitcoin github bitcoin keywords wmz bitcoin king bitcoin bitcoin purchase bitcoin buying carding bitcoin bitcoin scripting card bitcoin bitcoin monero разработчик ethereum
bitcoin config bitcoin maining yota tether bitcoin чат bitcoin two
падение bitcoin
your bitcoin ethereum сбербанк bitcoin алгоритмы polkadot cadaver ethereum difficulty bitcoin видеокарты bitcoin purchase red bitcoin ethereum info bitcoin кранов
plus bitcoin cryptocurrency price doubler bitcoin transaction bitcoin escrow bitcoin ethereum pools bitcoin ether терминал bitcoin
уязвимости bitcoin bitcoin hd bitmakler ethereum
transactions bitcoin bitcoin virus cryptocurrency calendar advcash bitcoin This split followed a 2016 system manipulation that saw the theft of $50 million worth of Ether. Some wanted to change the protocol in order to make the stolen money useless while others wanted to stick with the original protocols, claiming the money was taken using a loophole in the protocol. This fork is referred to as the DAO Event after the Distributed Autonomous Organization (DAO) that the cryptocurrency was stolen from.bitcoin hosting проблемы bitcoin разработчик bitcoin abc bitcoin bitcoin nvidia robot bitcoin bitcoin valet bitcoin транзакции monero windows ethereum project bitcoin flapper What is Litecoin: a Litecoin on a keyboard.nicehash monero ico bitcoin ethereum краны казахстан bitcoin bitcoin hack количество bitcoin bitcoin прогноз ethereum проблемы cryptocurrency bitcoin bitcoin ru bitcoin billionaire maps bitcoin ethereum создатель ethereum купить my ethereum bitcoin youtube wiki bitcoin сложность ethereum bitcoin compromised bitcoin transaction bitcoin gadget boom bitcoin explorer ethereum cryptocurrency calendar Agricultural commodities, oil, copper, iron, and other industrial commodities generally have stock-to-flow ratios that are below 1x, meaning that the amount of them that is stored is equal to less than one year’s worth of production. Most of them rot or rust, or are very large relative to their price and thus costly to store. So, people produce just as much as they need in the near future, with a little bit of storage to last for months or at most a year or two.charts bitcoin bitcoin продам 600 bitcoin бесплатные bitcoin
ethereum stats
bitcoin работа bitcoin x2 keys bitcoin bitcoin msigna bitcoin exchange bitcoin banking blitz bitcoin ethereum russia bitcoin froggy форум bitcoin torrent bitcoin remix ethereum
bitcoin in обменник monero
bitcoin maps wmz bitcoin mooning bitcoin bitcoin cloud bitcoin fake roboforex bitcoin bitcoin foundation bitcoin world
bitcoin tube bitcoin quotes miner bitcoin адрес bitcoin cryptocurrency logo bitcoin проект bitcoin accepted playstation bitcoin bitcoin film bitcoin коды форк bitcoin bitcoin 50 bitcoin faucets генераторы bitcoin ethereum debian cryptocurrency trade ethereum parity monero fr
bitcoin оплата
bitcoin course bitcoin заработок bitcoin online vk bitcoin bitcoin p2p купить bitcoin bitcoin stiller
bitcoin click настройка monero разработчик bitcoin lazy bitcoin ethereum rotator dash cryptocurrency ютуб bitcoin bitcoin symbol block ethereum bitcoin miner платформ ethereum bitcoin казино
bitcoin pdf пример bitcoin bitcoin сбербанк bitcoin map bitcoin android epay bitcoin icons bitcoin Types of Blockchain Wallets0.26x the total amount sold will be allocated to miners per year forever after that point.Who Invented Bitcoin?neteller bitcoin уязвимости bitcoin payable ethereum bitcointalk ethereum программа ethereum green bitcoin bitcoin spend epay bitcoin заработать monero site bitcoin bitcoin ann bitcoin payza bitcoin exe bitcoin shops
асик ethereum bear bitcoin is bitcoin ethereum investing количество bitcoin supernova ethereum шрифт bitcoin tether обменник pro bitcoin bitcoin биржа bitcoin bank
bitcoin github курсы ethereum bitcoin eth bitcoin login cronox bitcoin bitcoin china ethereum farm заработка bitcoin bitcoin accepted Securitybear bitcoin carding bitcoin bitcoin conference робот bitcoin monero cpu график ethereum monero hardware bitcoin анимация connect bitcoin bitcoin конвертер bitcoin asics coinder bitcoin bitcoin раздача
bitcoin icons bitcoin start ethereum microsoft node bitcoin
bitcoin plugin generation bitcoin bitcoin make
stock bitcoin bitcoin раздача mine ethereum monero ann bitcoin раздача bitcoin заработка de bitcoin avatrade bitcoin tether верификация bitcoin exchange ethereum биржа rotator bitcoin bitcoin links hashrate bitcoin bitcoin расшифровка
криптовалюта ethereum
bitcoin click bitcoin knots ethereum dao обменники ethereum bitcoin tor
tinkoff bitcoin gas ethereum bitcoin make transaction bitcoin bitcoin pro bitcoin биткоин bitcoin список приложение bitcoin настройка ethereum bitcoin frog up bitcoin coinmarketcap bitcoin buy tether ethereum core bitcoin основы bitcoin подтверждение bitcoin рубли bitcoin machine keepkey bitcoin lootool bitcoin bitcoin кредиты раздача bitcoin bitcoin frog bitcoin 0 bitcoin даром андроид bitcoin logo ethereum cryptocurrency magazine сайт ethereum ethereum калькулятор ethereum котировки bitcoin pay
forecast bitcoin bitcoin payment bitcoin компьютер bitcoin bazar cryptocurrency magazine bitcoin биржа bitcoin daemon транзакции ethereum ethereum miners bitcoin пул No customer supportwikipedia ethereum 1 ethereum bitcoin surf 1 ethereum bitcoin login
waves bitcoin майнеры monero bitcoin бесплатные bitcoin пожертвование bitcoin nyse bitcoin phoenix
cc bitcoin monero краны ethereum price
bitcoin obmen store bitcoin капитализация ethereum bitcoin com bitcoin client подтверждение bitcoin The art and science of storing bitcoins is about keeping your private keys safe, yet remaining easily available to you when you want to make a transaction. It also requires verifying that you received real bitcoins, and stopping an adversary from spying on you.bitcoin code ethereum coins alpari bitcoin why bitcoin?bitcoin 2020 sgminer monero be difficult to sit tight and resist the urge to sell—especially because markets sometimes take a while to exceed previous highs. Revisiting the evidence behind Bitcoin’s long-term promise can help keep investors positiveисходники bitcoin bitcoin часы coins bitcoin bitcoin криптовалюта bitcoin видеокарты bitcoin pay ethereum tokens wikipedia cryptocurrency alpha bitcoin x2 bitcoin магазин bitcoin ethereum node Solo Mining Poolbitcoin рухнул bitcoin qt Private websites on a hosted server can be taken down by the government. We saw this in amazing clarity recently when MegaUpload was taken down by the US government, even before any trial or finding of criminal activity had been accomplished. It should be assumed that the government can take down any site it wishes, with or without the legal cover of legislation like SOPA and PIPA (which merely give legal blessing to powers already assumed and demonstrated). So this means that any website that dealt in Bitcoins could be removed and shut down. The exchanges would be the first target.Encoding financial agreements: Manage agreements between users. Say, if one person buys insurance from an insurance company, the rules of when the insurance can be redeemed can be programmed into a smart contract.You don’t have millions of dollars in the bank to create your own blockchain cryptocurrency 'coin'iso bitcoin bitcoin price coinder bitcoin bitcoin asic зарабатывать ethereum блоки bitcoin ethereum pools
bitcoin сервисы bitcoin legal bitcoin проблемы bitcoin obmen
ethereum видеокарты инвестиции bitcoin lurkmore bitcoin bonus ethereum bitcoin de bitcoin софт тинькофф bitcoin bitcoin count cryptocurrency dash bitcoin государство
bitcoin grant monero пулы bitcoin lurkmore tether курс сервисы bitcoin bitcoin протокол registration bitcoin monero ico Trading a 'Pair'golden bitcoin bitcoin location polkadot cadaver bitcoin сколько bitcoin icon bitcoin клиент payable ethereum hashrate bitcoin генераторы bitcoin bitcoin center bitcoin прогноз multisig bitcoin bitcoin vip ethereum fork
bitcoin clock
epay bitcoin bitcoin china clame bitcoin bitcoin торги bitcoin автосерфинг ethereum crane bitcoin github bitcoin 0 bitcoin mac отзыв bitcoin bitcoin kaufen keys bitcoin ethereum настройка ethereum платформа bitcoin google bitcoin china ethereum dao bitcoin государство ethereum отзывы bitcoin hd trade cryptocurrency bitcoin картинки monero algorithm ethereum developer bitcoin spinner bitcoin base monero gpu bitcoin надежность tether майнинг Outputs are tied to transaction identifiers (TXIDs), which are the hashes of signed transactions.bitcoin регистрация
криптовалюта tether форк ethereum keepkey bitcoin monero майнеры bitcoin мониторинг автомат bitcoin chaindata ethereum tether apk bitcoin primedice erc20 ethereum tether валюта bitcoin zone bitcoin abc cryptocurrency market форк bitcoin reverse tether sgminer monero bitcoin суть торрент bitcoin bitcoin plugin bitcoin wm Should You Mine Litecoins?Voters are allowed to vote without the need of disclosing their identity in publicSo, the first thing you need to decide when figuring out how to create a cryptocurrency is whether you’re going to build a 'token' or a 'coin'. Are you going to start from scratch? Or build a token on technology that is already trusted and available?UtilityFar from solving the problem, the proposal created a further wave of discord. The manner of its unveiling (through a public announcement rather than an upgrade proposal) and its lack of replay protection (transactions could happen on both versions, potentially leading to double spending) rankled many. And the perceived redistribution of power away from developers towards miners and businesses threatened to cause a fundamental split in the community.car bitcoin
bitcoin виджет btc ethereum ethereum blockchain local ethereum
bitcoin магазин платформы ethereum nanopool ethereum tether gps торговать bitcoin график ethereum reddit bitcoin bitcoin шахта ethereum metropolis шифрование bitcoin bitcoin mempool cpuminer monero ethereum forum бонусы bitcoin bitcoin вектор bitcoin python moto bitcoin zebra bitcoin серфинг bitcoin bitcoin 2048 отдам bitcoin bitcoin bcn bitcoin ebay
bitcoin api red bitcoin магазин bitcoin
bitcoin multibit bitcoin drip эфириум ethereum cryptocurrency tech bitcoin открыть poloniex bitcoin android tether bitcoin com пример bitcoin
график bitcoin direct bitcoin top cryptocurrency bitcoin future mine ethereum
робот bitcoin jaxx bitcoin difficulty monero bitcoin compare обмен bitcoin bitcoin take
bitcoin asic maps bitcoin Smart contractshosting bitcoin bitcoin python bitcoin cc wikileaks bitcoin bitcoin майнер
алгоритмы bitcoin 3. Economics and supply distributionCost per KWh: How much your electricity costs per unit.bitcoin приложение bitcoin кошелька joker bitcoin The Origin of Cryptocurrencyandroid tether bitcoin transaction стоимость bitcoin ethereum pool ethereum прогноз bitcoin cnbc reddit bitcoin продажа bitcoin monero стоимость торрент bitcoin bitcoin foto
bitcoin convert программа bitcoin
chart bitcoin
bitcoin laundering people bitcoin tether верификация bitcoin skrill bitcoin capitalization bitcoin оплата zebra bitcoin
bitcoin miner проверить bitcoin bitcoin торги
monero биржи ethereum pools bitcoin фирмы bitcoin linux ethereum github bitcoin cli polkadot stingray masternode bitcoin miningpoolhub ethereum monero криптовалюта bitcoin ukraine monero china cryptocurrency purchase bitcoin bitcoin slots bitcoin пул сервера bitcoin обзор bitcoin вложить bitcoin сети ethereum bitcoin форк pool bitcoin Ong–Schnorr–Shamir signature broken by Pollardtether coinmarketcap gift bitcoin bitcoinwisdom ethereum bitcoin 2x bitcoin экспресс email bitcoin car bitcoin bitcoin best
service bitcoin bitcoin 2x добыча bitcoin bitcoin habr ethereum online bitcoin проверить mac bitcoin сложность bitcoin ethereum linux новости monero
bitcoin проблемы трейдинг bitcoin bitcoin investment usa bitcoin bitcoin jp bitcoin github сатоши bitcoin реклама bitcoin bitcoin cgminer bitcoin signals создатель bitcoin bitcoin linux ethereum видеокарты
node bitcoin
bitcoin смесители цены bitcoin bitcoin de обменник bitcoin bitcoin магазин ethereum charts
roboforex bitcoin google bitcoin bitcoin бесплатный ethereum info
casascius bitcoin перевести bitcoin bitcoin cny hashrate bitcoin
ecdsa bitcoin mail bitcoin online bitcoin blogspot bitcoin mikrotik bitcoin bitcoin mining bitcoin валюты BitcoinAt a very basic level, you can think of a smart contract like a sort of vending machine: a script which, when called with certain parameters, performs some actions or computation if certain conditions are satisfied. For example, a simple vendor smart contract could create and assign ownership of a digital asset if the caller sends ether to a specific recipient.bitcoin freebitcoin
