What is Ethereum?
The price of Ethereum has risen over 6,000% since January 2017!
There’s no escaping the fact that we’ve seen highly impressive price rises in 2017 propelling Ethereum to become the second most popular cryptocurrency after Bitcoin. Ethereum is much like Bitcoin in that it allows you to make payments online, there’s low transaction fees and there’s a public blockchain that records every transaction.
Ethereum is much more than a conventional currency replacement though and here’s where things get interesting. Ethereum has been designed as a decentralized platform allowing developers to build decentralised applications (DAPPS) using smart contracts making this technology a highly desirable asset for big businesses. Below is the official description of what Ethereum is from their website:
“Build unstoppable applications – Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.
These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.
This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.”
The founder of Ethereum is Vitalik Buterin who is a Canadian/Russian programmer and writer. His initial vision was to create a decentralised mining network and software development platform rolled into one. Since 2014 the Ethereum team has worked hard to develop the technology which is now seeing widespread corporate and financial institution adoption.
One important development in the history of Ethereum to mention is the hard folk that occurred in 2016. The DAO event led to an ICO having US $50 million stolen by an anonymous entity. This resulted in Ethereum going off on a new and safer blockchain, the newly created Ethereum classic (ETC) stayed on the original blockchain.
Now the network is stable and secure we’re seeing fantastic progression and global adoption of this technology. Ethereum technology is going to push boundaries in the future. For example, Ethereum will completely revolutionize the health-care system. All hospitals around the world can store, access and share their patient’s records instantly. Smart contracts stored in computer code will replace traditional paper contracts bringing digitization to almost everything that happens in the corporate world.
The Difference between Bitcoin and Ethereum
When getting into crypto investing it’s important to understand the subtle similarities and differences between the technologies sitting behind the currency. Here’s a short bullet point list which names a few:
- Ethereum and bitcoin are both powered by distributed ledgers and cryptography.
- The programming languages that they both use is different. Bitcoin uses slack based language and Ethereum uses Turning complete.
- Block time – The Ethereum blockchain records things far more rapidly than Bitcoin — processing transactions in 12 seconds, as opposed to Bitcoin’s 20 minutes.
- The main difference between them is that bitcoin was developed as a currency, designed to store value and be used in transactions and Ethereum was developed as a platform where developers can run and develop applications.
- Ethereum can be thought of as a cryptocurrency that allows others to make crypto currency.
Why Buy Ethereum?
Ethereum is a smart investment opportunity as it’s providing developers a solid platform to build upon. You should look to the Enterprise Ethereum Alliance to see which Fortune 500 companies are getting on board with Ethereum, Deloitte, Microsoft, JP Morgan, Thomson Reuters & Intel to name a few. These companies are not just buying into blockchain technology they’re investing in Ethereum smart contracts. It’s important to know that when you purchase Ethereum, you are purchasing the network’s digital currency, Ether. Ether powers the Ethereum network so by purchasing it, you invest in the network itself. Ethereum is also being incorporated by financial institutions, for example Bank of America recently adopted the blockchain technology that will help secure their customers transactions.
How to buy Ethereum in Australia on Coinspot
Coinspot offers investors instant delivery and easy verification in Australia. This is a great place to start when looking to buy Ethereum. The process is outlined below:
Visit https://www.coinspot.com.au/register and register for a free account.
The next step is to get verified so that you can deposit and withdraw AUD from Coinspot, this can be found in the account section in the top bar. You’ll have to provide some documentation to get verified.
Once verified next step is to open an Ethereum wallet https://www.coinspot.com.au/my/wallets
And then click buy:
Your order will then be processed and you’ll receive your Ethereum directly into you Coinspot wallet.
It’s vitally important to understand how to store your cryptocurrency. One of the most valuable pieces of advice that most veteran crypto traders will tell you is keep your currency stored in an online wallet and not on the exchanges. Some exchanges have been hacked in the past and so it’s much safer to store them in your own personal wallet with your own keys. Once you’ve bought on the exchange you can transfer your Ethereum to your personal wallet address. Here are a few suggestions as to where you can store your Ethereum:
This wallet was created in 2014 by Ethereum co-founder Anthony Di Lorio. It’s available for most devices (Windows, Apple and Linux desktop, Android and iOS mobile and tablet, and Google Chrome and Firefox extensions.)
Ledger Nano Hardware Wallet
Ledger Nano S is a Bitcoin, Altcoins and Ethereum hardware equipment wallet which depends on robust security features for putting away cryptographic assets and ensuring advanced instalments. This wallet is like a USB stick and is highly secure.
My Ether Wallet
MEW is a free client-side interface that interacts with the Ethereum blockchain. Although you can easily create new wallets in your web browser with MEW, it’s not actually an online wallet. Even though you create the wallet through the web, all your information and your funds are stored on your computer, not on the MEW servers.
Mist Ethereum Wallet
In terms of safety, it makes sense to download the Mist wallet as it is the official Ethereum wallet, created by the same developers who are responsible for the Ethereum ecosystem. There are versions available for Linux, Mac OS X and Windows. For the Ethereum Mist Wallet to work, it must be connected to a running, fully synced Ethereum node.
Ethereum in 2018
Ethereum is looking like an interesting prospect for investors heading into 2018, it’s far less volatile than Bitcoin, many businesses are standardizing on it and their brand recognition is going from strength to strength. The Ethereum market capitalization is set to surpass that of Bitcoin’s in 2018 as there is currently 92 million Ether coins in circulation compared to 17 million Bitcoins.
As with all cryptocurrencies it’s not all plain sailing. In these early days, we’ve seen currencies lose 35% of their value over night to then push on and jump another 70%. Blockchain technology is still feeling its way into the market place and there will inevitably be ups and downs to come. The technology and the widespread financial institution adoption of Ethereum paints a bullish future for this cryptocurrency in 2018.
Official Ethereum Website
Understanding the DAO event
Coin Telegraph – Ethereum
Bitcoin Vs Ethereum: Driven by Different Purposes
What is Ethereum? A Step-by-Step Beginners Guide
2017 Was Bitcoin’s Year. 2018 Will Be Ethereum’s
Ethereum – Wikipedia