In very short span of time Ether coin have made great impact in the entire ecosystem of cryptocurrencies. When we dig deeper we come to know that Ether aims to function both as a kind of decentralized internet and a decentralized app store, supporting a new type of application in the process. It is serving a lot of purposes that are being discussed here.
Needless to say while no one owns Ether coin, the system that supports this functionality isn't free. According to those who have been in the industry for some time, the network needs 'ether', a unique piece of code that can be used to pay for the computational resources needed to run an application or program.
Thus, like Bitcoin, ether coin is a digital bearer asset which is quite similar to a security, like a bond, issued in physical form. Needless to say just like cash, it does not require a third party to process or approve a transaction. However, instead of operating as a digital currency or payment, ether seeks to provide "fuel" for the decentralized apps on the network.
It must also be mentioned here that while this ether coin sounds complicated, you can think of a more concrete example of how tokens might power a user experience. Needless to say as Ether coin is gaining popularity a lot of people have started showing their interest into it and this may be a reason that exchange rate of ether has gone several notches up.
Additionally, ether has sometimes been called 'digital oil', and taking this analogy further, and transaction fees are calculated based on how much 'gas' the action requires. Needless to say each action costs an amount of gas that's based on the computational power required and how long it takes to run. A transaction costs 500 gas, for example, which is paid in ether.
There are a lot of similarities between Bitcoin and ether coin. A lot of experts believe that Bitcoin may face challenge in future from ether coin. For instance, as an economic system, the rules for ether's economy are a bit open-ended and while Bitcoin has a hard cap of 21 million Bitcoins, ether does not have a similar limit.
Lastly, of the ether that does exist, 60m was purchased by users in a 2014 crowdfunding campaign; another 12m ether went to the Ethereum Foundation, a group of researchers and developers working on the underlying technology.
Also Read: Initial Coin Offerings Making Great Inroads to Investment Banking
Needless to say while no one owns Ether coin, the system that supports this functionality isn't free. According to those who have been in the industry for some time, the network needs 'ether', a unique piece of code that can be used to pay for the computational resources needed to run an application or program.
Thus, like Bitcoin, ether coin is a digital bearer asset which is quite similar to a security, like a bond, issued in physical form. Needless to say just like cash, it does not require a third party to process or approve a transaction. However, instead of operating as a digital currency or payment, ether seeks to provide "fuel" for the decentralized apps on the network.
Ether Coins Have Bright Future among Investors
It must also be mentioned here that while this ether coin sounds complicated, you can think of a more concrete example of how tokens might power a user experience. Needless to say as Ether coin is gaining popularity a lot of people have started showing their interest into it and this may be a reason that exchange rate of ether has gone several notches up.
Additionally, ether has sometimes been called 'digital oil', and taking this analogy further, and transaction fees are calculated based on how much 'gas' the action requires. Needless to say each action costs an amount of gas that's based on the computational power required and how long it takes to run. A transaction costs 500 gas, for example, which is paid in ether.
Capable of Giving Tough Competition to Bitcoin
There are a lot of similarities between Bitcoin and ether coin. A lot of experts believe that Bitcoin may face challenge in future from ether coin. For instance, as an economic system, the rules for ether's economy are a bit open-ended and while Bitcoin has a hard cap of 21 million Bitcoins, ether does not have a similar limit.
Lastly, of the ether that does exist, 60m was purchased by users in a 2014 crowdfunding campaign; another 12m ether went to the Ethereum Foundation, a group of researchers and developers working on the underlying technology.
Also Read: Initial Coin Offerings Making Great Inroads to Investment Banking
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