While Bitcoin has long been dominant in the cryptocurrency scene, it is certainly not alone. Ethereum is another cryptocurrency related project that has attracted a lot of hype because of its additional features and applications.2016-12-20-1482198878-2452631-EthereumAndBitcoinWhatsTheDifference.pngEthereum: More Than Just MoneyThe first thing about Ethereum is that it is not just a digital currency. It is a blockchain-based platform with many aspects. It features smart contracts, the Ethereum Virtual Machine (EVM) and it uses its currency called ether for peer-to-peer contracts.Ethereum’s smart contracts use blockchain stored applications for contract negotiation and facilitation. The benefit of these contracts is that the blockchain provides a decentralized way to verify and enforce them. The decentralized aspect makes it incredibly difficult for fraud or censorship. Ethereum’s smart contracts aim to provide greater security than traditional contracts and bring down the associated costs.The smart contract applications are powered by ether, Ethereum’s blockchain based cryptocurrency. Ether, as well as other crypto-assets, are held in the Ethereum Wallet, which allows you to create and use smart contracts. The system has been described by the New York Times as..“a single shared computer that is run by the network of users and on which resources are parceled out and paid for by ether.”Implement Smart Contracts With Your Own CryptocurrencyEthereum allows you to create digital tokens that can be used to represent virtual shares, assets, proof of membership and more. These smart contracts are compatible with any wallet, as well as exchanges that use a standard coin API. You can copy the code from Ethereum’s website and then use your tokens for many purposes, including the representation of shares, forms of voting and also fundraising. You can either have a fixed amount of tokens in circulation or have a fluctuating amount based on predetermined rules.You Don’t Need Kickstarter When You Have EthereumOne great feature of Ethereum is that it gives developers a means to raise funds for various applications. For your new project, you can set up a contract and seek pledges from the community. The money that is raised will be held until the goal is reached or until an agreed upon date. The funds will be released back to the contributors if the goal is not met, or go on to the project if it is successful. Kicking out Kickstarter means that the third party is taken out, along with their rules, and also the fees they charge (when you include processing fees, Kickstarter can take up to 10% of a project’s budget).
The first thing about Ethereum is that it is not just a digital currency. It is a blockchain-based platform with many aspects. It features smart contracts, the Ethereum Virtual Machine (EVM) and it uses its currency called ether for peer-to-peer contracts.Ethereum’s smart contracts use blockchain stored applications for contract negotiation and facilitation. The benefit of these contracts is that the blockchain provides a decentralized way to verify and enforce them. The decentralized aspect makes it incredibly difficult for fraud or censorship. Ethereum’s smart contracts aim to provide greater security than traditional contracts and bring down the associated costs.The smart contract applications are powered by ether, Ethereum’s blockchain based cryptocurrency. Ether, as well as other crypto-assets, are held in the Ethereum Wallet, which allows you to create and use smart contracts. The system has been described by the New York Times as..“a single shared computer that is run by the network of users and on which resources are parceled out and paid for by ether.”Implement Smart Contracts With Your Own CryptocurrencyEthereum allows you to create digital tokens that can be used to represent virtual shares, assets, proof of membership and more. These smart contracts are compatible with any wallet, as well as exchanges that use a standard coin API. You can copy the code from Ethereum’s website and then use your tokens for many purposes, including the representation of shares, forms of voting and also fundraising. You can either have a fixed amount of tokens in circulation or have a fluctuating amount based on predetermined rules.You Don’t Need Kickstarter When You Have EthereumOne great feature of Ethereum is that it gives developers a means to raise funds for various applications. For your new project, you can set up a contract and seek pledges from the community. The money that is raised will be held until the goal is reached or until an agreed upon date. The funds will be released back to the contributors if the goal is not met, or go on to the project if it is successful. Kicking out Kickstarter means that the third party is taken out, along with their rules, and also the fees they charge (when you include processing fees, Kickstarter can take up to 10% of a project’s budget).
Ethereum’s price is approaching an important resistance line. There is a good probability of an upward rebound from that level. Alternatively, a turn to decline could form there.Will the upward movement continue?The main direction is up. As there was no turn on a medium-term scale, the odds are on the side of an upward trend. For a turn to decline, Ethereum’s price has to break through the level of $13.4.Ethereum Price ChartThe key level that we found yesterday is updated, and is now at $13.4. That is the intersection point for a diagonal channel, Fibonacci level 76 and the limit of a short-term flat.A lot of bulls can open their deals at that mark. That way, the movement of Ethereum’s price will hint at the most likely scenario of development.If the bulls keep hold of their advantage, there will be an upward rebound from that line. However, if the upward trend has insufficient support, there will be a fortification at that level and a turn to decline. Naturally, in that scenario Ethereum’s price cannot return to the top limit of the flat at $14. The minimal target for the downward turn scenario is $12.Ethereum Price ChartThe $13.4 resistance is likely to be the key point during the formation of the coming trend.
Tech Talk Computing NetworksEthereum’s $150-Million Blockchain-Powered Fund Opens Just as Researchers Call For a HaltBy Morgen E. PeckPosted 28 May 2016 | 13:01 GMTAddThis Sharing ButtonsShare to FacebookShare to TwitterShare to Hacker NewsShare to RedditShare to EmailShare to PrintMore AddThis Share optionsPhoto: Jens Kalaene/dpa/AP PhotoAt 9 a.m. GMT this morning, funding closed on an entity called The DAO. It’s a blockchain-enabled financial vehicle that’s structured kind of like a cross between Kickstarter and a venture capital fund and which now runs autonomously—no humans needed—on the fledgling Ethereum network. The DAO (short for decentralized autonomous organization) raised over US $150 million worth of the bitcoin-like cryptocurrency, Ether, during a feverish, 27-day sale.The DAO’s launch is feat that should surely stand out as a feather in the cap for the Ethereum network, as it is the most successful crowdfunding campaign yet documented anywhere, ever. But yesterday, just hours before The DAO was scheduled to open for business and begin taking project proposals, three blockchain researchers published an article outlining multiple flaws in the governance structure of the organization that they say could be used as vectors for attack. The researchers are asking everyone involved with The DAO to temporarily halt funding activities and fix the critical problems.“The attacks are quite real. So, somebody has to do something about them,” says Emin Gun Sirer, one of the authors of the article and of the blog where it was first published.The DAO is the first iteration on the Ethereum network of an idea that has been floating around the crytpocurrency space for a few years now, which is that you could take all the functions of an investment vehicle—fund storage, project vetting and approval, fund disbursement, and profit allocation—and handle it on a blockchain, thereby creating what is effectively a corporation without jurisdictional anchors. Equally attractive to some is the fact that a blockchain-enabled organization is completely transparent and does not rely on a managerial class with high salaries to complete its functions. Everything is done by the code, which anyone can see and audit.“The people who don’t participate, the people who are just in it for the ride, who are non-active members of The DAO, they’re going to be the ones who get screwed by biases and vulnerabilities”—Vlad Zamfir, Ethereum developerWhat investors who jump on board do rely on, however, is the expertise of the people who write and audit the code. They have to trust not only that the software is secure but also that the governance models work the way they are intended.This second part is where Sirer and his co-authors, Vlad Zamfir and Dino Mark, say the DAO creators have failed.Here’s a brief explanation of how The DAO is supposed to work. It’s first created as a contract written into an address on the Ethereum blockchain. The code for the contract specifies all the rules of the game. This was done by a few well-known people in the Ethereum community.In order to play the game, you send Ether (the native currency on the Ethereum network) to the contract address and you get tokens back in exchange. These tokens signify your proportional ownership over the mass of Ether poured into the contract. That period just ended. Now, in order to unlock the funds people will present project proposals and the DAO owners will vote on whether the projects are worthy of investment. For example, the same people who wrote the DAO contract are also planning to solicit investments from the organization to fund Slock.it, a project that is hell bent on decentralizing the sharing economy and replicating corporations like Uber and AirBnb as user-owned entities. At first the voting sounds simple. But there are a few notable details that complicate any game theory analysis of the governance structure. Voting is not a DAO participant’s only power. If I have DAO tokens, I can also decide to split from the larger DAO and create my own smaller one. I can also sell my DAO tokens to anyone who will buy them. If I vote on a proposal, I lose my right to split and I don’t get it back until the polls have closed. Nor can I sell my tokens while voting is in progess. In order for a vote to count, a quorum must be reached. The size of the quorum depends on the amount of funds requested in the prposal. There actually is a managerial class with very limited duties. There are 11 so-called “curators” who read proposals and vet them for basic flaws and scamminess. They also manage the status of the payment addresses on the funding proposals. In order for an address to recieve funding it must be whitelisted by the 5 out of 11 of the curators. The DAO can vote to fire and replace curators.
The price of bitcoin appreciated nearly 4% for the week ending 27th May, but the figure is perhaps not indicative of the wild trading action the market saw during the period.Such movements came as market observers are becoming more interested in the relationship between bitcoin, the token supporting the world’s longest-running blockchain, and ether, the token for the Ethereum platform.Bitcoin’s gains, for example, came as ether prices plunged sharply, but it made this climb amid modest trading volumes. By contrast, ether enjoyed robust transaction activity, a sign that points to a potential migration of traders away from bitcoin.Many market observers are beginning to suggest that these two digital currencies display a negative correlation. Since they both have their respective strengths and weaknesses, and each is publicly traded, experts have begun weighing in on the value of each as an investment.This perceived competition may not be over any time soon, and one market watcher emphasized that both currencies have quite a bit of potential.”It is still early to call the winner at this stage,” Toya Zhang, senior PR Manager for OKCoin, told CoinDesk.While developers have created many cryptocurrencies, bitcoin was the first one to reach scale – but some are beginning to think that this state of affairs might change.Tim Enneking, chairman of cryptocurrency investment manager EAM, said: “[There are now] serious concerns about whether [bitcoin] can do thousands of transactions a second and whether it’s robust enough for widespread use.”Ether, which operates at a far smaller scale than bitcoin, does not currently face such challenges. Further, supporters have asserted that ether has far more flexibility and potential than bitcoin, as Ethereum is proving capable of supporting a broader range of applications than bitcoin’s code.However, ether has done far less to prove itself than bitcoin, as the latter currency has long dominated the space. If a digital asset wants to achieve widespread adoption, this “requires continuous progress,” Zhang continued.While any forward-looking predictions are purely speculative in nature, hard data – involving both price movements and volumes – can provide a better understanding of market activity.Bitcoin’s modest climbOver the week, bitcoin prices rose 3.9% from $436.73 at 12:00 UTC on 20th May to $453.82 on 27th May, CoinDesk USD Bitcoin Price Index (BPI) figures reveal.However, the digital currency’s price fluctuated between $440 and $450 for most of the week until Friday. These fluctuations coincided with lackluster volume of 7.6m BTC during the seven days through 12:00 UTC on 27th May.”Bitcoin trading volume is flat,” Petar Zivkovski, director of operations at full-service bitcoin trading platform Whaleclub, told CoinDesk at the time.He added: “There’s no clear trend as market players exhibit uncertainty on future price direction, torn between the relatively bullish news of the upcoming supply production halving in July, and the relatively bearish news of Ethereum emerging as a competing and superior currency.”However, this soon changed, as observers reported a sharp decline in short positions that caused the subsequent price breakout that reached highs not seen since last fall. At press time, bitcoin is trading at $473.20.Ether’s plungeEther prices, by contrast, declined 14% during the seven days through 12:00 UTC on 27th May.While the digital currency began the period at $14.31, it ended a week of trading by falling well below $12 per ether at press time. These price movements took place as ether’s day-end, 24-hour trading volume fluctuated significantly.The week started out strong, with volume of $53.8m at 23:59 on 19th May, CoinMarketCap figures reveal. However, this measure fell to as little as $17.9m at 23:59 on 22nd May and finished the week at $20.7m.The currency’s recent drop – and bitcoin’s rally – can be attributed to market participants front-running The DAO’s raising of money, claimed George Samman, a blockchain advisor and consultant.Samman argued that market participants sold their ether holdings after the recent rally, purchasing bitcoin soon after.Such speculations, while unconfirmed, nonetheless remain indicative that market participants are beginning to more closely scrutinize the nature between the two markets.Was ether’s loss bitcoin’s gain? That answer remains elusive, though the search for connections between the two markets has certainly begun in earnest.
the beginning the Prophet Satoshi brought us Bitcoin. And the cryptogeeks and libertarians looked upon it, and said lo, we smile upon this, for it is good, and decentralized, and solves the Byzantine Generals Problem. For a time all was well. But then came wailing and gnashing of teeth and wearing of sackcloth. And then came the Prophet Vitalik, bearing Ethereum; and lo, it was even better.Maybe.What is Ethereum? It’s a combination of a cryptocurrency, like Bitcoin, and a vast decentralized computer. Let me explain. As an above-average TechCrunch reader, you already know Bitcoin is a currency whose transactions are secured by the immense computing power of its distributed network of “miners,” rather than any central entity. But you may not appreciate that every Bitcoin transaction is actually a program written in the Bitcoin scripting language — aka a “smart contract.”Bitcoin’s contractual language is quite limited, by design. But it allows for transactions that can be delayed until a particular time; or transactions that occur only if, say, 3 of 5 signatories agree to them; or crowdfunding campaigns that only transfer money if a particular total is attained; and many other possibilities. Importantly, once incorporated into the Bitcoin blockchain, these contracts require no trust and no human intervention. Bitcoin is programmable money … with a highly restrictive programming language.Ethereum removes those restrictions entirely. The Ethereum scripting language is Turing-complete, meaning it can replicate any program written in any traditional programming language. However, to prevent ill-behaved contracts with infinite loops from running forever, every Ethereum transaction computation must be paid for. Just as Bitcoin miners collect small amounts of bitcoin, known as “fees,” in exchange for mining transactions onto the Bitcoin blockchain, Ethereum miners collect “ether,” the Ethereum currency, for running Ethereum contracts.You may well be thinking: “Oh come on. Bitcoin was more than abstruse and geeky enough. Now this new made-up-magical-money thing is even more complicated? Why should I care?”You should care because decentralized cryptocurrencies like Bitcoin and Ethereum are–or at least could be–essentially an Internet for money, securities, and other contractual transactions. Like the Internet, they are permissionless networks that anyone can join and use. Ethereum optimists might analogize Bitcoin as the FTP of this transactional Internet, with Ethereum as its World Wide Web.I’ve waxed about why I think Bitcoin matters. I’m a little less enthusiastic about Ethereum … so far. To be clear: as I’ve written before, Ethereum is really cool, truly innovative, and potentially revolutionary. However, it is now–probably–at the peak of its initial hype cycle.Consider: heavily funded Bitcoin startup Coinbase will soon support Ethereum trading on its rebranded cryptocurrency exchange. Microsoft offers “Ethereum Blockchain As A Service” on Azure. Ether has risen in value more than tenfold over the last year, to a market cap which now exceeds $1 billion. And while Bitcoin’s hashrate, a measure of the computing power devoted to mining, still vastly exceeds Ethereum’s, look at the hockey-stick nature of that latter chart.
Ethereum Exchange for CoinBase
The addition of ether on the trading platform comes at a time when there is an enhanced interest in the 2nd significant cryptocurrency after bitcoin in market capitalization, amidst enhanced assessment of Ether.
Coinbase will likewise be rebranding the name of its trading platform to GDAX, or Global Digital Possession Exchange, exposed Reuters. The modification in the platform’s name is implemented to show the enhancing variety of digital possessions noted for trading on the exchange.
Speaking with the publication, Adam White, vice president of company advancement at Coinbase mentioned:
We’re extremely delighted about Ethereum. There has actually been a lots of development made in the last 6 to 9 months. We have actually seen numerous emerging decentralized apps introduced on Ethereum.
White highlighted Ethereum’s “scripting language” as one that can not be mirrored by Bitcoin, leaving the 2 primary cryptocurrencies to co-exist with no friction.
The renaming of its trading platform, Coinbase will still maintain its name for bitcoin and ethereum exchange services.
Ethereum Makes Gains
Coinbase consisting of Ether is just the most recent case of Ethereum’s native currency being accepted by significant exchanges.
Kraken just recently ended up being the very first digital currency exchange to present Ether Dark Swimming pool trading in its platform while the Winklevoss twins’ led Gemini exchange ended up being the very first certified exchange to provide Ether trading. Gemini acquired approval from the state of New York city to consist of Ether trading and was introduced previously this month.
GDAX will begin ether trading in almost every state other than New york city, where Coinbase remains in the procedure of getting a permit in the state.
Coinbase has actually not made a main statement about the launch of ether trading nor its rebranding and is anticipated to do so quickly.
Ethereum is having a moment.Coinbase, a bitcoin-only exchange, is planning to add support for an ethereum exchange, the company said today (May 19). Coinbase exchange users will be able to buy and sell ether, the virtual currency unit behind ethereum starting Tuesday, May 24. Ether is currently trading at about $14 USD (bitcoin is trading at around $448 USD). Sources say Coinbase had been considering adding ethereum for some time. Earlier today, a screenshot of a support page for ether was published by a cryptocurrency trader on Twitter, then appeared on social media site Reddit.Ethereum is a digital currency similar to bitcoin. Such currencies, based on software, allow people to transact anonymously and freely without a middleman involved.Created by 22-year-old software developer Vitalik Buterin, ethereum has a particular property that’s excited companies: smart contracts. Smart contracts are essentially agreements between two parties that can execute automatically, without human involvement. Unlike bitcoin, ethereum natively supports smart contracts. Proponents say smart contracts can cut costs and reduce human error. They have gained support from JPMorgan Chase, Barclays, and even the state of Delaware.
RunCPA, the largest affiliate marketing network in the cryptocurrency market, has announced a competition to find the best decentralized app on the Ethereum platform, which will be integrated with the RunCPA network. The prize is a $250,000/year job offer and shares in the company.CompetitionCoinTelegraph spoke to Adam Guerbuez, chief marketing officer at RunCPA, who said of the competition: “We are holding a competition to carefully select a developer of the most creative and useful D-app [decentralized app] based on the Ethereum platform that would integrate with the RunCPA platform… [The winner] will receive a very exclusive job offer that carries a salary of $250.000/year plus shares in RunCPA. This offer is open until June, 1, 2016.”Adam Guerbuez, Chief marketing Officer at RunCPAThe competition isn’t open just yet, but Matt Williams, COO at RunCPA, says, “we are preparing to start this competition soon (May-June 2016). We want to get more feedback from developers and if they are ready to take part in this competition we ask them to inform us about this at firstname.lastname@example.org”David Mondrus, CEO of BlockChainFactory.com, says: “The RunCPA Competition offers a unique opportunity for a savvy Ethereum developer to show their stuff. Figuring out a CPA business model to run on their network also sounds like an interesting challenge. I like win/win’s.”RunCPAAlongside this, the company says it is working with the Ethereum community and other smart contract providers. They are hoping to develop a decentralized CPA network based on the Emercoin algorithm, emcLNX, a peer-to-peer text-advertisement network based on a per-click payment model.RunCPA sets itself apart from its competitors through its use of a smart AI system humorously named ‘Skynet’ that closely monitors all traffic and conversions sent from their affiliate marketers. The company claims that this allows them to block 95% of fraudulent, low quality, or abusive traffic. They hope to improve its machine learning skills in the future.In addition, “the incentives to an affiliate marketer to promote the offers in our network outweigh the rewards they would normally be accustomed to if they promoted the same products and services through any other network or even direct with the provider.”RunCPA is one of very few cryptocurrency-related marketing networks in the industry, and one of even fewer in the affiliate marketing sector. The cost-per-action (CPA) model employed by the company, although not innovative in the marketing industry, is brand new to the cryptocurrency industry. The hope is that it will prove cost-effective for marketing-illiterate developers, and that as more marketing agencies spring up, competition will lead to better quality products and greater innovation for developers.