What is Ethereum?

What is Ether?

01 Sep 2017

Advancement in technology over the years has revolutionized the way people interact and live their day to day lives. The invention of the blockchain technology is proving to be one of the most significant inventions ever made by humanity since the internet. The blockchain technology supports various cryptocurrencies. Ether is one of these currencies whose blockchain is generated by the Ethereum platform.

The Ether digital currency has been advanced significantly with the introduction of Htmlcoin in its transactions. Ether is actively used to compensate most of the participant mining nodes for all the computations performed. Five ethers are released every 12 seconds dedicated to repaying the activities of the miners. The cryptocurrency offers a public distributed ledger majorly used for transactions.

Since ether thrives much on the Ethereum platform, it aims at providing ‘fuel’ for most decentralized apps on the network rather than operating like other cryptocurrencies or forms of digital payments. The new Htmlcoin blockchain is not just a type of cryptocurrency. It is a well-developed secure system based majorly on Bitcoin Core that amalgamates Ethereum based smart contracts.

The Htmlcoin implements an expandable design that has capabilities of incorporating more virtual machines than all the other blockchain platforms. On the other hand, ether is dubbed ‘digital oil’ since all Ethereum transaction fees are solely calculated based on how much ethers the action requires. Each of these actions requires some Ether subject to the computational power and amount of time needed to run them.

How to Create Ethers

When considered as an economic system, it is discovered that the rules of the ether economy are slightly open-ended. Ether does not have a hard cap like that set for bitcoin. Currently, 60 million of the ether that exists got purchased by users in a crowdfunding campaign held in 2014. Thus, the total supply of this digital currency and its issuance rate got determined by the gathered 2014 presale donations.

60 million ether coins got allocated to the contributors of the presale with 20% of that amount going to early developers and contributors of the development fund. The rest 80% went to the Ethereum Foundation. Since many digital coins exist, the Htmlcoin blockchain technology is incorporated in the Ethereum platform to support quick and safe transactions.

Five ethers get produced every 15 seconds to the miner in a block. 2 or 3 of these ethers are sometimes given to another miner in the case that they got a solution, but their block was not included. These transactions to another miner whose block was not involved are called aunt/uncle rewards.

These transactions have become vulnerable to hackers in the recent years. Nonetheless, Htmlcoin blockchain technology comes in handy to enhance security and minimize any forms of losses that may arise from hacking.

Is Ether Infinite?

Unlike the traditional currencies that have an unlimited supply, ether supply is tightly controlled by its underlying terms agreed by all parties on the 2014 presale. A small number of these digital coins is released every 15 seconds and is strategically set to continue trickling at a diminishing rate until the set maximum is reached.

The maximum number of the ether currency is set at 18 million per year. This number is approximately 25% of the total original supply of this cryptocurrency. Therefore, with its enhancement using the Htmlcoin, bitcoin is quite attractive as an investment asset. Consequently, it can be deduced effectively that although the total issuance is consistent, the resultant inflation is decreased every year.

The Htmlcoin blockchain takes into account the importance of Ethereum and Bitcoin in the crypto world. Thus, it is designed to enhance security ensuring that every input refers to a previous unspent output available in the blockchain to avert any cases of double spending.   The Htmlcoin uses aspects of both Ethereum and Bitcoin making it easy to use and accessible to all the digital currencies.

The result of the HTML blockchain is an open source community that allows Bitcoin to ‘communicate’ with Ethereum. If the issuance gets maintained indefinitely, it will result in equilibrium between the rates of new tokens created to the average amount lost annually. However, the 18 million annual issuances are set to reduce significantly by 2019.

Who needs Ether?

The Htmlcoin blockchain UXTO model incorporates the advantages of Ethereum and Bitcoin solving the problem of their incompatibility. The individuals who intend to build all types of applications on the Ethereum blockchain require ether. Also, the various users who plan to interact with and access the smart contracts hosted on the Ethereum blockchain also need ether.

The Ethereum technology has a goal of using HTML blockchain to replace almost all the existing internet third parties. It aims at using the Htmlcoin technology to replace the systems that keep track of sophisticated financial instruments, transfer mortgages and store data.  

Sources
https://www.ethereum.org/ether
https://www.coindesk.com/information/what-is-ether-ethereum-cryptocurrency/
https://www.ethereum.org/ether