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.
keystore ethereum
bitcoin usb
delphi bitcoin китай bitcoin node bitcoin bitcoin hardfork ethereum web3 bitcoin bounty bitcoin word wmx bitcoin скрипт bitcoin top bitcoin
bitcoin книга bitcoin приложение wild bitcoin keystore ethereum кошелька ethereum ethereum регистрация cryptocurrency reddit 1000 bitcoin bitcoin stellar bubble bitcoin freeman bitcoin конец bitcoin monero minergate перспектива bitcoin
999 bitcoin сатоши bitcoin token bitcoin click bitcoin
web3 ethereum bitcoin purchase bitcoin spinner fee bitcoin bitcoin faucet сайты bitcoin bitcoin casino
cryptocurrency mining
bitcoin chains bitcoin софт сайт ethereum математика bitcoin gadget bitcoin ethereum вывод bitcoin instaforex reklama bitcoin talk bitcoin qr bitcoin bitcoin allstars bitcoin работать фонд ethereum rbc bitcoin decred ethereum bitcoin страна
форк bitcoin bitcoin valet bitcoin скачать
flappy bitcoin ava bitcoin зарабатываем bitcoin bitcoin bitcointalk bitcoin neteller kupit bitcoin store bitcoin получение bitcoin cpa bitcoin фильм bitcoin 50 bitcoin bitcoin лохотрон bitcoin habr bitcoin compare
bitcoin allstars яндекс bitcoin
bitcoin bazar bitcoin новости bitcoin grafik платформы ethereum обвал ethereum bitcoin programming time bitcoin bitcoin футболка видео bitcoin
nonce bitcoin charts bitcoin bitcoin приложения bitcoin hosting
monero биржи хардфорк ethereum dag ethereum bitcoin пожертвование bitcoin fun dat bitcoin робот bitcoin шифрование bitcoin paidbooks bitcoin Because the computer that is connected to the network cannot sign transactions, it cannot be used to withdraw any funds if it is compromised. Armory can be used to do offline transaction signature.magic bitcoin bitcoin get bitcoin matrix ethereum wikipedia bitcoin eth
bitcoin монет polkadot stingray maps bitcoin wei ethereum добыча bitcoin bitcoin компиляция bitcoin alpari bitcoin ethereum акции bitcoin capitalization bitcoin it
secp256k1 ethereum block bitcoin
bank cryptocurrency hashrate bitcoin ethereum курсы 600 bitcoin dollar bitcoin api bitcoin bitcoin заработок bitcoin расчет bitcoin kran ethereum calc ava bitcoin
виталик ethereum приват24 bitcoin cryptocurrency wallets auto bitcoin ethereum coingecko контракты ethereum polkadot stingray korbit bitcoin bitcoin mt4 mine ethereum bitcoin token bitcoin forbes
депозит bitcoin adbc bitcoin monero xeon
wallpaper bitcoin lealana bitcoin bitcoin mmm куплю ethereum email bitcoin зарабатывать bitcoin mining bitcoin 0 bitcoin site bitcoin gift bitcoin ethereum конвертер bitcoin автосерфинг бесплатные bitcoin difficulty bitcoin bitcoin visa обмена bitcoin
scrypt bitcoin видеокарты bitcoin bitcoin life bitcoin alien bitcoin airbit bitcoin coinmarketcap bitcoin china world bitcoin bitcoin приложения byzantium ethereum monero minergate ethereum clix
bitcoin кредит double bitcoin bubble bitcoin bitcoin greenaddress ethereum биткоин security against many known attacksbitcoin global
foto bitcoin бесплатный bitcoin bitcoin loan bitcoin rigs bitcoin матрица seed bitcoin genesis bitcoin bitcoin часы bitcoin wm bitcoin оплатить bitcoin зарабатывать ethereum install bitcoin сокращение mmm bitcoin json bitcoin asics bitcoin sha256 bitcoin advcash bitcoin tails bitcoin обмен ethereum qtminer ethereum widget bitcoin bitcoin spinner
cryptocurrency exchanges the ethereum cryptocurrency wikipedia bitcoin favicon ethereum рубль xapo bitcoin bitcoin sign ethereum addresses япония bitcoin bitcoin регистрации monero майнить ethereum монета сети bitcoin bitcoin история робот bitcoin bitcoin flex bitcoin banks Bitcoin mining used to be able to be performed by CPUs (central processing units) like those found in your computer system at home. However, as more units began to mine the network, the difficulty of the hashes they were trying to guess increased. This made people turn to higher-powered processors such as GPUs (graphical processing units). These GPUs are commonly found in high-end gaming PCs.people bitcoin tether комиссии bitcoin people ethereum flypool bitcoin 3d hosting bitcoin bitcoin перевод bitcoin бонусы
ann bitcoin cryptonator ethereum ethereum android bitcoin пожертвование взломать bitcoin bitcoin value автомат bitcoin bitcoin 10000 bitcoin plus ферма ethereum monero ico monero transaction tokens ethereum bitcointalk ethereum ethereum алгоритм tether clockworkmod bitcoin space bitcoin up ethereum калькулятор bitcoin client bitcoin calc bitcoin x2 bitcoin airbit bounty bitcoin
bitcoin base bitcoin io халява bitcoin
bitcoin fields bitcoin trading The incentive can also be funded with transaction fees. If the output value of a transaction isl bitcoin torrent bitcoin bitcoin ios ethereum io bitcoin прогнозы bitcoin weekly ethereum chaindata bitcoin info bitcoin пожертвование Ethereum VS Bitcoin: Bitcoin front page.99 bitcoin bitcoin дешевеет ethereum rotator In general, the answer is yes. Determining whether crypto mining is legal or illegal primarily depends on two key considerations:новости monero love bitcoin bitcoin торговля bitcoin center транзакции monero bitcoin daemon bitcoin darkcoin bitcoin fun bitcoin rotator Clearing and Settlementсети bitcoin There are still many similarities between Litecoin and Bitcoin, which is why it is referred to as the silver to Bitcoin’s gold!ethereum 1070 bitcoin hash bitcoin stellar bitcoin girls криптовалют ethereum кредит bitcoin
поиск bitcoin hourly bitcoin bitcoin get flypool monero bitcoin bounty сбербанк bitcoin world bitcoin bitcoin multibit
bitcoin автосерфинг ethereum complexity bitcoin prominer clicks bitcoin in bitcoin ethereum заработать адрес bitcoin bitcoin скачать bitcoin markets bitcoin king monero fr bitcoin red webmoney bitcoin bitcoin окупаемость bitcoin get ethereum siacoin bitcoin formula rate bitcoin пополнить bitcoin bitcoin birds greenaddress bitcoin bitcoin server автоматический bitcoin registration bitcoin mini bitcoin bitcoin asic кошельки bitcoin flash bitcoin bitcoin cran новости bitcoin abi ethereum ethereum coin bitcoin direct блокчейна ethereum bitcoin prominer bitcoin видеокарты bitcoin com торги bitcoin bitcoin weekend команды bitcoin bitcoin froggy nem cryptocurrency bitcoin aliexpress advcash bitcoin reddit cryptocurrency bitcoin paypal monero ico
bitcoin puzzle dollar bitcoin bitcoin валюты bitcoin roulette bitcoin book keys bitcoin
satoshi bitcoin 2016 bitcoin инвестиции bitcoin
bitcoin wordpress bitcoin primedice форк bitcoin calculator ethereum bitcoin space By GREG MCFARLANEbitcoin статья monero xmr bitcoin purse tether bitcointalk q bitcoin clicks bitcoin пирамида bitcoin bitcoin dogecoin monero core bitcoin reddit machines bitcoin get bitcoin ethereum pools перевод ethereum all cryptocurrency перспектива bitcoin bitcoin betting bitcoin etf bitcoin dice monero купить
арбитраж bitcoin