If you’re new to the world of the Internet, you may not have heard of ether and may not understand what it does. But if you are already involved in online businesses and trade on the web, then you have surely heard of it or at least have an idea of what it is. For those who aren’t quite sure what ethereum is, here’s a breakdown of how the platform works and what it can do for you. In no time at all, you too could be using the technology to boost your online ventures.
First, let’s get a little technical. When you think about it, ethereum is actually a Distributed ledger or database that works on top of the traditional block chain technology. It differs from other networks because it does not follow the same protocol as other block chains like the bitcoin network. What this means for you is that instead of having to download and install a separate program to use the ethereum virtual machine, you can use the existing mining software that you have on your computer.
This means that you have instant access to the entire world’s supply of ether, without any delays or problems. You also don’t have to download and install a separate mining software on your computer – it’s just right there in the machine that you are using. In a way, this is what is known as “immature” or “stakeless” mining, because it doesn’t require any participants (miners) in order to function.
Since ethereum uses a different computing methodology, its transactions are grouped into “blocks.” One block could be comprised of multiple transactions and each transaction has an associated script, which serves as a smart contract. The smart contract can specify how the money will be transferred, who is who, and in what amount. However, the blockchains are not programmed in any particular way. As such, anyone who participates in the transactions can alter them in some way before they are included in the next block.
Different people and institutions can participate in the mining of the ethereum network. This is done by creating new tokens, which are then stored by the miners of the Ethereum network. Because of this, it may seem that there aren’t any long term benefits to mining in the Ethereum ecosystem. However, the developers behind the project are doing everything they can to make the process as secure and efficient as possible. So, if you want to participate in the future of the development of ethereum, it would be in your best interest to follow along.
There is no single person or institution that owns the majority of the ether supply in the future. At the current time, Vitalikis Varoufakis, the CEO of the Hellenic bank XCP, owns around 65%. While he is not a major player in the overall scheme of things, his stake in the future of the ethereum project is something everyone should take notice of. The reason for this is that he has an influential position in the institution. Therefore, if the total supply goes up, it will be to his benefit to pump the money into the ether because then he will be the one profiting from the increased value.
There is no clear indication as to what the impact mining in the ethereum 2.0 protocol will have on the supply curve or whether or not the network will increase in its price or not. What we do know is that since miners control a significant portion of the supply, they could manipulate the price of the network. If they choose to keep the price low, they will lose a portion of their profits when the demand for the tokens increases.
However, if anyone is going to invest in the future of decentralized applications, they should look into the etheric protocol. Even if it isn’t for the short term, it could end up being a huge deal for the long term. The biggest benefit is that it decreases the power of large corporations to manipulate the market because they don’t have the control that big businesses have. This makes it one of the most interesting platforms ever created by an unknown company.