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    Ethereum Ron Paul: Gold- and Crypto-backed Currency are the Remedy to an Inevitable Dollar Collapse

    July 02, 2018

    Ethereum Ron Paul: Gold- and Crypto-backed Currency are the Remedy to an Inevitable Dollar Collapse

    Ron Paul: Gold- and Crypto-backed Currency are the Remedy to an Inevitable Dollar Collapse

    Posted: 02 Jul 2018 11:01 AM PDT

    Ethereum Transaction Fees Increase by 7000% Due to Network-Clogging Airdrops

    Posted: 02 Jul 2018 12:00 PM PDT

    The Kraken bites back: Bloomberg gets schooled by exchange

    Posted: 02 Jul 2018 04:05 AM PDT

    Spanish Ruling Party Plans to Adopt Blockchain Technology for Government Operations

    Posted: 02 Jul 2018 11:55 AM PDT

    How that meeting should have went

    Posted: 02 Jul 2018 09:06 AM PDT

    The SEC looks to enact plans that could approve the creation of blockchain ETFs

    Posted: 02 Jul 2018 05:15 AM PDT

    Bitcoin vs Ethereum. Guide to Understanding Ethereum.

    Posted: 02 Jul 2018 07:46 AM PDT

    Bitcoin vs Ethereum. Guide to Understanding Ethereum.

    I'm writing this predominantly for crypto-newbies. Newbies need to know the difference between Bitcoin and Ethereum. Sometimes we forget how confusing this space can be to new individuals.

    What is Ethereum?

    Ethereum is one of the largest cryptocurrencies to date. Created by Vitalik Buterin, it has a lot of distinct features that differentiate it from Bitcoin. Bitcoin was created to be a peer-to-peer digital currency and Ethereum was created to serve as a decentralized computer featuring smart contracts. Both are similar in that they utilize blockchain technology to facilitate transactions within the network. Ethereum though, allows for much more utility through the use of smart contracts.

    What is a smart contract?

    A smart contract is a digital contract which conditions are carried out automatically through self-enforcing logic. A basic example of a smart contract could be one that automatically pays your best friend X amount of money on his/her birthday. The functionality of if/then logic on a blockchain allows for decentralized applications (dapps) to be created and executed on the Ethereum network. This is why Ethereum is referred to as a decentralized computer. You can create your own dapp by learning the Ethereum program language Solidity, or you could use one of the thousands of already created dapps.

    What is a decentralized application?

    A decentralized application is a application (program) that that is not controlled by a single entity, but rather, by the peers within the network. This means no central authority has control over the program itself.

    Imagine if YouTube was not owned and controlled by Google, but rather, by everyone who is participating within the network. This means YouTube wouldn't be able to arbitrarily decide which videos and users are suitable for the platform. This power would instead fall into the hands of the people.

    Side Note: There's already decentralized version of YouTube called DTube which is built on the STEEM blockchain.

    Technical Differences Between Bitcoin & Ethereum

    Bitcoin vs Ethereum Bitcoin Ethereum
    Total Supply: 21 Million None
    Block Size: 1-2 MB Depends
    Block Time: ~10 Min ~15s
    Consensus Algorithm: Proof of Work Proof of Stake (Soon)

    Total Supply

    The total supply of bitcoin is predetermined; there can never be more than 21 million bitcoins created. Ethereum on the other hand does not have a max supply.

    You can read Vitalik's thoughts on this here.

    Block Size vs Gas Limit

    Ethereum doesn't have a block size but rather a gas limit. Gas is a measure of the amount of computational work needed to execute a command on the network. The amount of gas needed will depend on the program you are trying to run -- similar to how much gas needed for your vehicle will depend on how far you wish to travel.

    Gas limit is how much you're willing to pay for a transaction to be carried out. Gas price is the price at which you're willing to pay per gas. Together those determine your transaction fee. TX Fee = Gas Limit * Gas Price

    Websites like EthGasStation take an average of previous transactions to show what the average gas price is. Use it for your own benefit

    Block Time

    Ethereum's block time is much faster than bitcoin's. ~15s vs ~10min. This means transactions on the ethereum blockchain on average will be much faster than on bitcoin's. This is also why it's typically recommended to use ethereum instead of bitcoin when making cryptocurrency deposits into exchanges like Binance.

    Consensus Algorithm

    Bitcoin uses a consensus algorithm known as proof of work (PoW). Ethereum currently uses PoW, but near the end of 2018 ethereum will move to a proof of stake (PoS) algorithm known as Casper. This will initially be rolled out as a PoW and PoS hybrid where every 100th block is validated by PoS.

    Understanding ERC-20 Tokens

    ERC-20 is a set standard for tokens that are created on the Ethereum network. It was created to allow for interoperability between ethereum based tokens. There are tens of thousands of different ERC-20 tokens due to the free nature of anyone being able to create their own.

    You may have heard of some of the more popular ones including:

    • EOS
    • TRON
    • BNB
    • VeChain (VEN)

    These are all essentially tokenized smart contracts.

    Understanding Initial Coin Offerings (ICOs)

    One of the most common uses cases for an ERC-20 token is to be used as a means to raise capital. These events are called ICOs or Initial Coin Offerings. ICOs are analogous to IPOs (Initial Public Offerings) in that, when an entrepreneur needs to raise capital to fund the business -- he/she asks venture capitalists for money. The venture capitalists in return ask for a stake in the company which is expected to increase in value over time.

    The difference is an ICO does this through crowdfunding by utilizing blockchain technology. Instead of purchasing stock in the company, you're purchasing a cryptocurrency (which is often just a ERC-20 token). Then, if the project gains real world utility, the price of the token should increases in value.

    As you could imagine, because of the nature of how easy it is for anyone to create their own ERC-20 token, bad actors within the space have abused this power to launch fraudulent businesses which is funded through the sale of their token.

    The most notable example of this is probably BitConnect which promised 1% daily compounding interest with your investment. This of course was a scam, and BitConnect no longer exists.

    This is not to say there's no such thing as a legitimate ICO (Ethereum was funded through an ICO after all), however, know that an overwhelming majority of ICOs are fraudulent with 80% being scams. As a newcomer to the cryptocurrency space, understand that there is a lot of fraudulent cryptocurrencies out there. The importance of DYOR (do your own research) can never be understated.

    Conclusions

    This post is starting to get pretty lengthy so I'm going to cut it here. By now you should have a good understanding of what ethereum is, why it's important, and how it works. I've listed the most important takeaways below:

    • Ethereum was created by Vitalik Buterin
    • Ethereum is a decentralized computer featuring smart contracts
    • The Ethereum platform allows you to build decentralized applications (dapps)
    • Ethereum will transition to a proof of stake (pos) consensus algorithm

    Thanks for reading!

    submitted by /u/MrCryptoDude
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    Aventus Event Ticketing

    Posted: 02 Jul 2018 02:34 AM PDT

    On-Chain Vote Buying and the Rise of Dark DAOs

    Posted: 02 Jul 2018 03:35 PM PDT

    Ethereum modern-style website widgets

    Posted: 02 Jul 2018 01:16 PM PDT

    Coinbase Introduces Cryptocurrency Custody Services

    Posted: 02 Jul 2018 07:48 PM PDT

    Exhaustive List of Ethereum Token Standards

    Posted: 02 Jul 2018 08:32 AM PDT

    South African Central Bank Ethereum Blockchain Tests Successful

    Posted: 02 Jul 2018 12:18 AM PDT

    ICO Alert Podcast: Fanchain – ICO Alert Blog [ERC20/ERC721 Hybrid]

    Posted: 02 Jul 2018 02:10 PM PDT

    A Primer on Ethereum Blockchain Light Clients – zk Capital Publications – Medium

    Posted: 02 Jul 2018 07:39 PM PDT

    This smart contract scanner will ensure your token is tip-top

    Posted: 02 Jul 2018 12:43 PM PDT

    Digix Rebrand Looks Gold!

    Posted: 02 Jul 2018 07:27 PM PDT

    Digix Rebrand Looks Gold!

    Absolutely love this project. So underrated, literally holding more ETH than their current Market Cap. One of the few projects that can claim they've been busy behind the scenes for years without much marketing, and not the other way around! Interviewing the team this week.
    https://digix.global/

    https://i.redd.it/3dkakoo19n711.png

    submitted by /u/nugget_alex
    [link] [comments]

    Beware of the bots shilling hostgames

    Posted: 02 Jul 2018 10:56 AM PDT

    EU report: cryptocurrencies will not challenge the economic power of central banks

    Posted: 02 Jul 2018 03:10 AM PDT

    New EU Report Declares That Cryptocurrencies Are Here to Stay

    Posted: 02 Jul 2018 06:31 AM PDT

    Join ConsenSys VC’s Tachyon Accelerator - Joseph Lubin & Friends

    Posted: 02 Jul 2018 09:49 AM PDT

    MetaMask stopped showing fiat value for eth transactions

    Posted: 01 Jul 2018 10:26 PM PDT

    BitMex Co-Founder Becomes Youngest CryptoMillionaire in UK

    Posted: 02 Jul 2018 06:10 PM PDT

    Windows Clipboard Hijacking Malware Reportedly Monitoring 2.3M Bitcoin Wallets

    Posted: 02 Jul 2018 10:33 AM PDT

    Use of Relay Networks / IBLT to reduce block propagation time

    Posted: 02 Jul 2018 07:59 AM PDT

    Would using something like Falcon or Graphene aid in reducing 1) block propagation times such that gas limit can be safely increased without a major uptick in Uncle rates, or 2) node sync times?

    From what I've read, Falcon may not be suitable due to the ability to censor blocks, but something like bloxroute may be.

    I feel like if there's even marginal benefit to using these, we have to consider them given the state of scaling and what we are seeing happening again with the network and gas prices.

    submitted by /u/Enigma735
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