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.
rbc bitcoin настройка bitcoin ethereum форум moto bitcoin bitcoin poker bitcoin paypal ethereum blockchain bitcoin lucky ethereum проблемы ethereum icon ethereum calc bitcoin elena hd7850 monero bitcoin atm jax bitcoin bitcoin pattern roulette bitcoin халява bitcoin ethereum валюта alpari bitcoin проекта ethereum equihash bitcoin
bcn bitcoin
bitcoin заработок bitcoin de
верификация tether bitcoin чат bitcoin network ethereum кошелька
block bitcoin gadget bitcoin bitcoin бизнес bitcoin перевод bitcoin pay talk bitcoin bitcoin луна monero обменять flex bitcoin бесплатно ethereum обновление ethereum love bitcoin ledger bitcoin txid bitcoin bitcoin lurk bitcoin reddit home bitcoin раздача bitcoin difficulty bitcoin
bitcoin экспресс ethereum кошелька the ethereum ethereum supernova cryptonator ethereum
wiki ethereum bitcoin node
armory bitcoin bitcoin plugin котировка bitcoin приват24 bitcoin ethereum обменять moneybox bitcoin hyip bitcoin tether tools bitcoin wmx seed bitcoin обменники bitcoin
bitcoin экспресс bitcoin fund ethereum dag банкомат bitcoin cap bitcoin cryptocurrency tech bitcoin ocean bitcoin 100 монет bitcoin cryptocurrency exchanges 4pda tether bitcoin кранов nvidia monero eth ethereum rinkeby ethereum bitcoin cloud ethereum капитализация пул monero bitcoin center bitcoin конвертер bitcoin wmx bitcoin cms zona bitcoin bitcoin roll пул monero
ethereum динамика
short bitcoin bitcoin exe market bitcoin пополнить bitcoin инструкция bitcoin ethereum токен анонимность bitcoin bitcoin ключи bitcoin change dance bitcoin bitcoin etf linux bitcoin
bitcoin работа simple bitcoin bitcoin background bitcoin мастернода galaxy bitcoin card bitcoin fx bitcoin bitcoin direct txid bitcoin
bitcoin китай love bitcoin zebra bitcoin bitcoin hashrate 'The balance is not automatic. First, since thermonuclear weapons give an enormous advantage to the aggressor, it takes great ingenuity and realism at any given level of nuclear technology to devise a stable equilibrium. And second, this technology itself is changing with fantastic speed. Deterrence will require an urgent and continuing effort.'moneybox bitcoin asrock bitcoin bitcoin tor продам bitcoin
sec bitcoin bitcoin qr bitcoin convert bitcoin пицца nanopool ethereum bitcoin история bitcoin софт bitcoin symbol bitcoin icons bitcoin rus транзакции ethereum bitcoin airbit bitcoin nodes bitcoin swiss bitcoin форекс bitcoin demo bitcoin tm utxo bitcoin
book bitcoin bitcoin legal ethereum web3 bitcoin passphrase рынок bitcoin bitcoin stellar bye bitcoin
free ethereum bitcoin bitrix wmx bitcoin купить ethereum cryptocurrency calculator electrum ethereum bitcoin dollar bitcoin koshelek bitcoin торговля bitcoin обои bitcoin получить ethereum chaindata bitcoin keys выводить bitcoin сбербанк ethereum hashrate bitcoin bitcoinwisdom ethereum bitcoin карта bitcoin автомат криптовалюту monero half bitcoin ethereum decred currency bitcoin bitcoin таблица tether usb bitcoin register bitcoin etf основатель bitcoin reindex bitcoin
carding bitcoin баланс bitcoin
баланс bitcoin баланс bitcoin bitcoin приват24 bitcoin example bitcoin two bitcoin футболка компиляция bitcoin ethereum shares generator bitcoin ethereum asics ethereum перевод bitcoin server kurs bitcoin bitcoin лохотрон bitcoin sweeper cryptocurrency logo asics bitcoin
tether android bitcoin antminer настройка ethereum майнинг tether primedice bitcoin monero ico bitcoin история запрет bitcoin block bitcoin tether android сигналы bitcoin moto bitcoin monero coin bitcoin программа CRYPTOFor ether, transaction fees differ by computational complexity, bandwidth use, and storage needs, while bitcoin transaction fees differ by transaction size and whether the transaction uses SegWit. In September 2018, the median transaction fee for ether corresponded to $0.017, while for bitcoin it corresponded to $0.55.monero майнинг bitcoin сатоши
индекс bitcoin обмен monero bitcoin tor проекты bitcoin
hacker bitcoin bitcoin aliexpress bitcoin indonesia bitcoin invest bitcoin instant ethereum coins ethereum вывод ethereum decred rx560 monero 1070 ethereum tether программа ava bitcoin кошельки bitcoin bitcoin майнинга кости bitcoin bitcoin faucet casino bitcoin bitcoin кошельки майн bitcoin casino bitcoin кошельки ethereum bitcoin google monero биржи ethereum vk ethereum farm bitcoin slots bitcoin prices курса ethereum bitcoin qr
транзакции bitcoin bitcoin stellar cryptocurrency exchanges monero node bitcoin аналитика ethereum кошелька microsoft bitcoin monero proxy bitcoin ruble рейтинг bitcoin monero nicehash trezor bitcoin cz bitcoin ethereum алгоритм bitcoin настройка bitcoin onecoin abi ethereum ethereum crane bloomberg bitcoin платформа ethereum bitcoin obmen
bitcoin hash bitcoin аналоги weather bitcoin mac bitcoin ethereum майнер bitcoin цены convert bitcoin заработать bitcoin bitcoin fpga bitcoin etherium ads bitcoin bitcoin кошелька bitcoin расчет monero краны rush bitcoin bitcoin earnings sell bitcoin bitcoin elena обои bitcoin
bitcoin telegram bitcoin япония love bitcoin вики bitcoin kaspersky bitcoin баланс bitcoin bitcoin server cryptocurrency wallet баланс bitcoin отследить bitcoin poloniex ethereum bitcoin блок bitcoin деньги abc bitcoin курс bitcoin магазин bitcoin bitcoin картинка bitcoin монета flex bitcoin курс bitcoin neo bitcoin
bitcoin значок monero форум bitcoin two
hosting bitcoin 50 bitcoin bitcoin prices bitcoin серфинг пул bitcoin bitcoin инструкция bitcoin calculator проекты bitcoin bitcoin avalon tether coin cryptocurrency calendar
bitcoin lion nanopool ethereum electrum bitcoin bitcoin webmoney ethereum faucet хардфорк ethereum bitcoin payoneer
трейдинг bitcoin bitcoin play ethereum настройка bitcoin получение monero майнер airbitclub bitcoin wisdom bitcoin bitcoin хайпы big bitcoin бесплатный bitcoin робот bitcoin doge bitcoin transaction bitcoin
freeman bitcoin ethereum code future bitcoin armory bitcoin bitcoin markets bitcoin mmgp
bitcoin euro cryptocurrency bitcoin slots bus bitcoin escrow bitcoin скачать bitcoin зарегистрироваться bitcoin bitcoin мастернода
форк bitcoin ethereum eth genesis bitcoin dark bitcoin криптовалюта tether bitcoin ваучер автосборщик bitcoin air bitcoin bitcoin блок bitcoin checker разделение ethereum
golden bitcoin bitcoin landing bitcoin openssl monero transaction tether курс decred ethereum
tether валюта bitcoin заработок To keep blocks coming roughly every 10 minutes, the difficulty is adjusted using a shared formula every 2016 blocks. The network tries to change it such that 2016 blocks at the current global network processing power take about 14 days. That's why, when the network power rises, the difficulty rises as well.bitcoin cost adc bitcoin платформа bitcoin bitcoin p2p ethereum настройка wallet tether вики bitcoin зарегистрировать bitcoin
проект bitcoin кошелька bitcoin bitcoin бумажник HOW TO GET STARTED AS A CRYPTOCURRENCY MINERандроид bitcoin bitcoin wsj bitcoin dance ethereum эфириум bitcoin цена bitcoin easy amazon bitcoin bitcoin security монета ethereum ethereum перспективы
monero xmr адрес bitcoin ethereum chaindata bitcoin anonymous cryptocurrency analytics information bitcoin bcc bitcoin bitcoin goldmine раздача bitcoin ethereum client tether io debian bitcoin bitcoin instant bitcoin direct bitcoin etf
group bitcoin стратегия bitcoin bitcoin roll полевые bitcoin bitcoin майнить capitalization bitcoin blockchain ethereum bitcoin форк bitcoin icons вложения bitcoin bitcoin shop bitcoin кран падение bitcoin криптовалюта tether ethereum форк bitcoin ads ethereum криптовалюта
bitcoin spinner bitcoin pattern In the past I’ve drawn parallels between bitcoin and the early petroleumкалькулятор bitcoin ava bitcoin
bitcoin magazin математика bitcoin форки ethereum принимаем bitcoin bitcoin work
bitcoin bonus the ethereum
trader bitcoin bitcoin зарегистрироваться отзывы ethereum gemini bitcoin geth ethereum nodes bitcoin x bitcoin '…the void is everywhere and it moves around; it can stand for one truth when you write a number a certain way — no tens, for example — and another kind of truth in another case, say when you have no thousands in a number!'майнить bitcoin LINKEDINкапитализация bitcoin bitcoin dice
mooning bitcoin bitcoin cli field bitcoin bitcoin generate bitcoin kran mist ethereum ethereum coin mini bitcoin bitcoin forbes jaxx bitcoin monero btc адрес ethereum china bitcoin ethereum forum bitcoin chains bitcoin webmoney bitcoin это bitcoin information china bitcoin bitcoin кран bitcoin коллектор сложность ethereum mini bitcoin rigname ethereum frog bitcoin bitcoin кошелька tether майнинг
bitcoin команды
комиссия bitcoin
monero pro lazy bitcoin How users agree on which network is 'Bitcoin'mini bitcoin bitcoin quotes bitcoin register bitcoin программирование ethereum buy bitcoin gek monero графики bitcoin
bitcoin обналичить ethereum 1070
bitcoin вики microsoft ethereum технология bitcoin bitcoin регистрации ethereum dark bitcoin ваучер играть bitcoin bitcoin maps bitcoin airbit
agario bitcoin
stock bitcoin bitcoin сделки
avatrade bitcoin bitcoin loans bitcoin лайткоин торговать bitcoin pos bitcoin ethereum курс ethereum биткоин ads bitcoin bitcoin nvidia
ферма ethereum заработок ethereum ethereum news all bitcoin
download bitcoin ethereum os bitcoin neteller putin bitcoin заработок ethereum create bitcoin bitcoin бесплатные free bitcoin ethereum телеграмм
bitcoin карты
bitcoin pizza ltd bitcoin криптовалют ethereum ethereum farm взлом bitcoin настройка ethereum
gif bitcoin мастернода bitcoin курс tether bitcoin anonymous bitcoin development antminer bitcoin bitcoin суть робот bitcoin bitcoin nasdaq часы bitcoin купить bitcoin bitcoin вирус bitcoin pps bitcoin roll фри bitcoin 777 bitcoin game bitcoin
ethereum nicehash tether provisioning bitcoin биткоин bitcoin community bitcoin торговать bitcoin лотерея direct bitcoin bitcoin карта mine monero bitcoin plus ann bitcoin ethereum котировки
dwarfpool monero rpg bitcoin enterprise ethereum bitcoin solo
trade cryptocurrency андроид bitcoin wallets cryptocurrency шахта bitcoin bitcoin de bitcoin easy андроид bitcoin bitcointalk monero андроид bitcoin demo bitcoin bitcoin foto Denominationsкитай bitcoin Bitcoin Mining Hardware: How to Choose the Best OneIn July 2011, the operator of Bitomat, the third-largest bitcoin exchange, announced that he had lost access to his wallet.dat file with about 17,000 bitcoins (roughly equivalent to US$220,000 at that time). He announced that he would sell the service for the missing amount, aiming to use funds from the sale to refund his customers.bitcoin create bitcoin спекуляция
bitcoin прогноз
bitcoin сервисы bitcoin vector bitcoin save
exchange bitcoin konvertor bitcoin space bitcoin genesis bitcoin ethereum калькулятор bitcoin алгоритм r bitcoin bitcoin конвертер bitcoin монеты global bitcoin bitcoin metatrader iso bitcoin
The key to protecting yourself from data loss of any kind is to have redundant backups so that if one is lost or destroyed, you still have others you can use when you need them. All good wallet software asks their users to write down the seed recovery phrase of the wallet as a backup, so that if your primary wallet is lost or damaged, you can use the seed recovery phrase to restore access to your coins. If you have more than one backup location, they should be in places where various disasters won't affect both of your backups. For example, its much better to store two backups in a home safe and in a safe deposit box (as long as your seed is protected by a passphrase) than to store two backups in your bedroom and one in your garage.fork bitcoin spots cryptocurrency nicehash monero sgminer monero
ethereum alliance byzantium ethereum bitcoin plus вывод monero отзывы ethereum bitcoin surf payeer bitcoin будущее ethereum icons bitcoin platinum bitcoin bitcoin paypal bitcoin passphrase биржа ethereum bitcoin swiss bitcoin fake хайпы bitcoin bitcoin config bitcoin hash bitcoin tor комиссия bitcoin bitcoin bounty биржа ethereum ethereum tokens bitcoin торги bitcoin demo bitcoin github bitcoin расшифровка advcash bitcoin вложить bitcoin balance bitcoin polkadot ico difficulty bitcoin polkadot store заработок ethereum
casino bitcoin tx bitcoin продажа bitcoin bitcoin click bitcoin c bitcoin tm However, it’s not nearly as cushy a deal as it sounds. There are a lot of mining nodes competing for that reward, and the more computing power you have and the more guessing calculations you can perform, the luckier you are.bitcoin 10 nicehash monero bitcoin автосерфинг bitcoin virus kaspersky bitcoin bitcoin matrix monero пул daily bitcoin
bitcoin daily ethereum cryptocurrency coins bitcoin bitcoin analytics принимаем bitcoin SimilaritiesFor a blockchain to perform efficiently, validators are required to provide stable and secure services. Blockchains often enforce this by slashing a validator’s stake for dishonest or malicious behavior. To run a successful validator node, an agent needs to be committed to a selected blockchain and run a secure and continuously available infrastructure. Some blockchains have a significant lockup period (during which validators cannot retrieve their coins) as well as certain minimum thresholds for staking. To avoid dealing with all these requirements, many owners of crypto assets prefer to delegate their coins to a validator running a staking pool. Some blockchains (like Tezos) have a built-in mechanism that allows anyone who does not want to be a validator to delegate their coins to a validator on the network. This validator then performs all the work and shares the reward with their delegators.bitcoin сервисы adbc bitcoin zebra bitcoin bitcoin 2017 bitcoin froggy bitcoin биткоин bitcoin торги bitcoin redex ubuntu ethereum bitcoin reklama зарабатывать bitcoin jaxx bitcoin
bitcoin trojan ethereum прогноз ethereum ферма ethereum телеграмм калькулятор bitcoin магазины bitcoin bitcoin презентация To stop people cheating the network, a system known as 'proof-of-work' is used. Proof-of-work is needed before any group (block) of transactions is added to the blockchain. When the computers are performing their proof-of-work, what they’re doing is trying to guess a long string of numbers and letters. This string is known as a hash. invest bitcoin
рубли bitcoin block bitcoin miner monero bitcoin mmm bitcoin shops bitcoin регистрация платформы ethereum korbit bitcoin
Ether, the native currency of the Ethereum network, derives its value from a myriad of different factors. It is used within the Ethereum network to perform a range of functions, including:
