What is Ethereum?
Any worthwhile guide should start with a definition. Ether in ancient Greece was called the upper layer of the atmosphere, and in chemistry, this is how some classes of chemical compounds are designated.
But what is ether in the world of cryptocurrencies? Ethereum is a form of digital money that is mainly used on the Ethereum platform. Ether can be sent to friends via the Internet quite quickly-usually for a much lower fee than other altcoins.
Cryptocurrency ether can be compared with cash. Imagine that you sent a friend $ 5-and they immediately came to the account without the participation of third parties. The same thing would happen if you sent him 1 ETH-unless your friend would be much happier, since now this coin is worth more than $2 thousand.
The main purpose of ether is not only transactions of digital assets, but also support for the operation of the Ethereum blockchain. This network is the basis of many decentralized applications, which are called by one general term — dApps. dApps serve to create more effective alternatives to the technologies that we use every day.
Whenever transactions are made in the Ethereum blockchain and operations are closed, the user is charged a commission in the ether cryptocurrency.
Who created Ethereum?
The second most popular cryptocurrency was created by a Canadian programmer of Russian origin, Vitalik Buterin.
He learned about cryptocurrencies and blockchain about two years after the launch of bitcoin. Buterin attracted several other specialists as co-founders of his own currency, and in the summer of 2014, the first sale of ETH tokens took place. As a result, about $18 million was collected.
History of the Ether course
Let's see how much Ethereum costs now and how the value of the cryptocurrency has changed since its network started working in July 2015-about a year after the sale of tokens. When the hype around ETH started to cool down a little, the price of the coin was basically $ 1 or so.
In 2016, the first significant growth of the exchange rate began. The price of ETH for six months soared from about $ 0.95 (as of January 1) to $20.59 dollars (June 16) — an increase of about 2060%. Later, the ETH exchange rate corrected, and the coin was trading at about $7-8 until the end of the year.
None of the investors had any idea that the cryptocurrency boom was just around the corner.
Starting in 2017, the ether began its victorious march upward from a modest level of $8.33. On December 20, 1 ETH cost $868 dollars — 10,320% more than at the beginning of the year. But this was far from the end. After a brief descent to $675, ETH almost doubled its value and rose to $1,432. 88 by January 13, 2018.
After that, the cryptocurrency hype ended, and by December 2018, ETH was already trading below $100. However, there were also periods when the ether was again trading above $200. In June 2019, the altcoin was even trading above $320. This was largely due to the fact that some large companies, including Microsoft, Amazon and JPMorgan, began to develop projects on the Ethereum network.
In 2020, a new rise in the market began. On May 11, 2021, the ether cryptocurrency reached its peak value — $4,168. After that, the market began to sink again. ETH is currently trading around $2,180.
The difference between Ethereum and Bitcoin
Bitcoin, as well as ether, is an anonymous decentralized payment system.
The main purpose of the bitcoin blockchain is to record all transactions of the network, starting with the very first one.
The main goal of the ether is to provide a decentralized platform for application developers, the ability to conclude smart contracts.
- Creating an entire platform with many functions (smart contracts, application development, etc.)
- Smart contracts that can protect you when working financially with people you don't know.
- The Ethereum wallet allows you to securely store coins, both of the ether itself and other cryptocurrencies created using the Ethash algorithm
How to mine?
In order to extract Ether, it is necessary to have special equipment – video cards. You can use as 1 video card (buy it or use a card from a computer) or build a mining farm.
Please note that there are already Asics in the Ethash network (Ethereum Coin). However, they do not yet pose a big threat to miners on the GPU.
It turns out that now you can mine Ethereum, both on video cards and on Asics.
It is worth noting right away that video cards with 4 gigabytes of memory are no longer supported for Ether mining. This is due to the ever-increasing complexity of the DAG file.
That is, cards such as: AMD RX (470, 570, 570, 580) 4 Gb, and such as Nvidia 1060 (3 Gb) are no longer relevant in Ethereum mining!
Buy cards with a reserve of at least 8 Gb.
When the size of the DAG file reaches the mark of 6 gigabytes, cards of this kind will also not be able to extract Ether (for example: Nvidia 1060 6 Gb).
Next, you need to download and configure the program for Ethereum mining:
|Programs||Series||Setting up and downloading|
|Phoenix Miner||AMD/Nvidia||Download and configure|
|ETHminer||AMD/Nvidia||Download and configure|
Which video card is best to use
It is best to use AMD video cards, since they are better suited for mining coins with the Ether – Ethash algorithm, and will bring more coins and money. You can easily check this by entering the name of the video card in the online calculator.
In order to choose a pool that is convenient for you, use the online aggregator miningpoolstats.
Here you will find the most convenient mining pool for the Ethereum cryptocurrency.
Where is it better to store it?
The safest and most reliable is the cold wallet of ether. But it is worth noting right away that this wallet will be synchronized even on a powerful computer for about a month.
Ether also has a second wallet that does not need to be synchronized – just download it to your computer and install it as a regular program. Such a wallet is also quite cheaper, but it has a small disadvantage – it is a larger commission than on the wallet that needs to be synchronized.
You can also use an online wallet, but this method is less secure, since online servers can be hacked and all coins will be stolen.
Another option is hardware wallets. A hardware wallet is a special flash drive that stores your Ether on itself. It must be inserted into a computer (mobile, tablet, etc.) before selling or buying a new Ether.
The last and most common option is to store coins on the exchange. It is worth noting right away that cases of closing exchanges and theft were not a rare phenomenon in the entire history of the cryptocurrency. Yes, this is the easiest and most convenient way to keep the Ether, but most likely the most unsafe.