Crypto Academy

Ethereum

Ethereum

6 min reading

Learn all the features of Ethereum in the article!

Ethereum

Ethereum

Introduction

If you are a newbie to the crypto world or an experienced trader, a phenomenon like Ethereum could not pass you by. On the wave of a sharp rise in bitcoin prices, more and more people are interested in cryptocurrencies. If almost everyone has heard about bitcoin, then the next most popular cryptocurrency Ethereum is not inferior. In this article, we will take a detailed look at what ethereum is and how it works.

What is it?

The Ethereum cryptocurrency is an open software platform based on blockchain technology that allows developers to build and release decentralized applications. In other words, it is much more than a cryptocurrency. Ethereum runs simultaneously on thousands of computers around the world and does not have a single owner. Furthermore, Ethereum mining employs the same PoW algorithm as bitcoin does. In other words, miners validate and confirm transactions, getting a reward with 2 ETH. Besides, such complex calculations require sufficient computer power and only 18 million coins can be mined, there is no limitation to ETH emission.

History of Ethereum

Unlike Bitcoin, there is a real person behind Ethereum or a leader. Ethereum was established by Russian-Canadian programmer and journalist Vitalik Buterin. Working on Bitcoin in 2013, he discovered that this blockchain does not have its own scripting language. At the end of 2013, Ethereum was released. The main goal of Ethereum was to provide the blockchain with an embedded, full-fledged programming language that can be used to create smart contracts.  Furthermore, with the development of the crypto industry, more and more services accept ETH as a payment. For instance, you can exchange your crypto coins into your local fiat currency. On the other hand, there is a list of shops and platforms, suitable for paying with ether: PizzaForCoins, Ujo Music, Chicago Gem Shop, 1000 EcoFarms, Amagi Metals, Cryptoart , FlokiNet, Peddler.com, etc.

Smart contract

By the way, smart contracts are written in software code and stored on the blockchain. They make transactions “traceable, transparent and irreversible”. In other words, the main idea of Ethereum is that developers can create and run code on a distributed network instead of a centralized server. It means that theoretically, such applications cannot be stopped or be influenced in any way. Such programs are added to the ethereum database (i.e. its blockchain) and can be programmed so that the code cannot be edited. In addition, the database of the entire network is visible to everyone, so users can check the code they need before interacting with it.

The difference between ethereum and bitcoin

Bitcoin is based on blockchain technology and financial incentives to create a global payment monetary system. Several key innovations were presented by bitcoin. It allows users to coordinate each action around the world without the need for central government involvement. 

While Bitcoin uses blockchain technology to track who owns bitcoin, ethereum uses blockchain as a platform to run almost any decentralized application. It’s also called software that can be used by everyone but is protected from unauthorized access.

Bitcoin is considered to be the first generation of blockchain. It was not designed to be overly sophisticated and it is its strong point from the side of security. The blockchain is deliberately not flexible due to security prioritization at the basic level. Bitcoin’s smart contract language is extremely limited in its capabilities.

On the other hand, the second generation of blockchains is much more complex. Such platforms provide a greater degree of programmability. Ethereum gives developers a lot more freedom with their code to create Decentralized Applications. Bitcoin and ethereum belong to different generations of blockchain technology. However, the popularity and growing market capitalization of ethereum compete with all cryptocurrencies. 

Ethereum occurred on the wave of second-generation blockchains and today it remains the most prominent in this segment. It shares similarities with Bitcoin and can perform most of the same functions, but they are very different.

The common point between bitcoin and Ethereum is the fact that they both use distributed, publicly available networking technologies or blockchain. By analogy with Bitcoin, Ethereum also has its open-source code. Anyone can take part in the development of the protocol or create applications based on it. According to statistics, Ethereum has the largest community of blockchain developers today.

Conclusions

Why is Bitcoin becoming popular

Why is Bitcoin becoming popular

5 min reading

Did you know why bitcoin is still going strong? Keep reading if you want to get the answer!

Why is Bitcoin becoming popular

Why is Bitcoin becoming popular nowwhen it has been around
for several years

As you know, bitcoin is the first and the most successful crypto in history. Bitcoin’s capitalization is worth at the time of writing approximately around a trillion dollars, setting a new price record. Bitcoin (BTC) was launched by developer Satoshi Nakamoto in 2009 and has held the lead for 12 years. Although bitcoin has been experiencing ups and downs through the years because of the volatility of the cryptocurrency market, we cannot deny its importance to the economic sector. In the article, we explain the advantages of bitcoin and why it is so popular now. 

Bitcoin value is affected by many factors and its future depends on big businesses such as whales. Important to note, the cryptocurrency market is quite unpredictable as there is no special institution to regulate its price rates. Many organizations are now investing in bitcoin and accepting this cryptocurrency as payment. Bitcoin is becoming more and more popular, and there are now 370,000 transactions a day with this crypto-asset, up from 100,000 a few years ago. Unfortunately, the bitcoin network can confirm no more than seven transactions per second, so the user has a choice: either pay additional fees to the miners or wait for confirmation.

Besides, we want to focus on the obvious advantages of bitcoin and explain why it is an investment opportunity to consider as the coin has come a long way to become what it is now. 

Cryptocurrencies differ greatly from any other assets because of a range of factors. For instance, they use blockchain, making them a competitive alternative to bank transfers, electronic payment systems, and even government money. Compared to existing financial instruments, cryptocurrencies offer some advantages. Most cryptocurrencies operate in a decentralized manner, according to their algorithm. There are no state authorities to control their issuing and circulating; all communication nodes have the same rights and are equal to each other. The algorithm in networks such as Bitcoin cannot be changed by anyone, not even the developers. Moreover, cryptocurrency transactions have a high processing speed. In addition, once a transaction is added to the blockchain, it becomes irreversible. The irreversibility of transactions prevents tampering with records and fraud in the system. 

Also, the crypto community considers privacy one of the main benefits of cryptocurrencies. No personal details are required to use the system, allowing a better level of privacy, financial institutions or marketing companies. Only by knowing the private key, the person has access to the wallet. In other words, no one can deduct coins from an account or freeze their movement. Cryptocurrencies can be a means of protecting one’s capital in case a bank declares bankruptcy. 

Buyers put their personal information at risk when paying for goods and services since it can be intercepted and exploited later. Indeed, the merchant receives no personal information in cryptocurrency transactions, so you can be sure that the information will not fall into the hands of malicious parties. Bitcoin is said to be very secure because it is based on blockchain technology. Moreover, the security of its algorithms is constantly being improved, which guarantees a high level of protection for your assets. So, to date, despite the huge stakes, no one has managed to hack this technology, and you can safely make transactions anywhere in the world. Many organizations and shops accept payments in BTC, which is quite convenient. This means that you can make payments at the touch of a button on your device.

Many countries around the world have recognized crypto-currencies as a means of payment. Thus, they regulate the crypto-industry at the legislative level in their countries and impose taxes. In addition, investment funds and companies such as Grayscale, MicroStrategy, and Tesla are investing vast amounts in crypto-currencies. Belarus, Malta, Switzerland, Japan, and Singapore are crypto-friendly countries. 

Bitcoin has become an excellent investment opportunity because of its global capitalization around the world. You may have heard that bitcoin is a very volatile asset. This is true, but on the other hand, it is an advantage, which makes trading interesting. After buying and selling the asset at the right time, you can potentially make big gains. If you want to increase your chances of success, you should research all the information before trading or investing in crypto-currencies, as there is always a possibility of losing money due to the risks of fluctuations in the crypto-currency market. However, the rapid growth and development of the crypto-currency industry have many financial experts, such as JP Morgan, saying that the price of bitcoin will rise, and thus it could become an extremely profitable investment.

Let’s consider the main risks of investing in virtual currency to avoid unwanted problems in the future. For instance, assets may be subjected to theft or loss as a result of carelessness. If an attacker gains access to an investor’s private secret key, they can steal the entire contents of the digital wallet. The computer’s hard drive can also break down and one wrong move will result in the deletion of the secret key file. Another reason is the Lack of security. One of the biggest risks is that any institution or authority does not protect the virtual currency. Absolutely all national currencies around the world are backed by government assets. For instance, electronic currencies are backed only by the assets of the companies that created them. Cryptocurrencies, on the contrary, have no such security! 

Moreover, there are Cyber-security risks and fraud possibilities exist. Hackers can hack into virtual currency trading platforms. Since Bitcoin’s inception, its acceptance has grown exponentially, making it the most popular virtual currency used around the world. Unfortunately, as cryptocurrencies grow in popularity, the number of scammers looking to make money from them also increases. According to statistics, phishing is a popular scam today.

Finally, it should be said that you should not open unverified sources to avoid being a victim of phishing. High volatility. Bitcoin’s value fluctuations, in general, are almost unpredictable in the short term, and this adds to its riskiness. The problem of network scalability also seems serious and not fully resolved. Network bandwidth has long been a concern, and rising fees make small transactions not entirely profitable.

Conclusions

What are cryptos used for?

What are cryptos used for?

5 min reading

You have some crypto but don’t know where to use it? Keep reading.

What are cryptos used for

What are cryptos used for?

With the rapid development of cryptocurrency, more and more people become interested in how to get the crypto-assets and what is possible to buy with crypto coins. If you do not want to trade or invest, then you may think about what you can buy with your bitcoin or other cryptos. There are many companies, shops, and online resources that are ready to accept payment in crypto coins. In the article, we consider the issues that should be taken into consideration and what you can buy with cryptocurrency.

Pros and cons of cryptocurrency

Cryptocurrency is quite an unusual and convenient means of payment, that you can use almost everywhere. But first, let’s dive into details and think about its pros and cons. The well-known fact is that cryptocurrency is an extremely volatile asset, except in the cases when we talk about stablecoins. Stablecoins are the type of cryptocurrency that is determined to prevent the instability of crypto-assets price rates and attract more customers to the industry. Stablecoins can be used as a form of saving or insurance costs. There are such examples of stablecoins like Tether, True USDT, Gemini USD, etc. The level of interest and the volume of resources attributed to stablecoins is striking and shows that stablecoins are considered to be an important part of the digital asset ecosystem. In other words, stablecoins can promote the use of cryptocurrency in the world and popularize it. 

Payment with cryptocurrency

If you want to pay with crypto for something, keep in mind that not every country allows you to do that. The reason is that nowadays many countries are not sure about how to consider crypto and are not ready to accept it as a means of payment due to its volatility and unpredicted nature. Before making any transaction with cryptocurrency, make sure you are allowed to do that.

But there is a wide range of countries that are quite friendly to the new way of payment as the USA, Canada, Netherlands, South Korea, Malta, etc. Nevertheless, many countries have a heated discussion about the recognition of the crypto-asset as a full-fledged currency or means of payment.

The range of purchases you can make is really impressive. Cryptocurrency can be accepted as payment in cafes (Subway, Starbucks, Burger King), services (AT&T, eGifter, Purse), online shops (Rakuten, Shopify, Bitplaza, Amazon), software and hardware manufacturers (Microsoft, Dell, Ledger). You can even book a plane ticket or a hotel room with cryptocurrency (aBitSky, Travala, AirTreks). Now, and that has been considered as one of the most important announcements of 2020, we have also PayPal that allows you to pay in crypto in more than 24 million shops worldwide.

Cryptocurrency development has also led to the fact that there are many organizations as UNICEF that accept donations with cryptocurrency!  For instance, the Water Project’s goal is to provide access to drinking water in Africa countries. Each person can make a donation to the charity organization in Ether, Bitcoin Cash, Bitcoin, or Litecoin. Helping has never been so easy with crypto. Any caring person can send a donation to those who require it.

However, all the facts above prove that cryptocurrencies still have significant opportunities for spreading all around the world. The cryptocurrency market tends to grow and expand, arousing interest and attracting new people to the world of crypto.

Conclusions

Buying

buy crypto

5 min reading

Discover how to buy some crypto assets with our article

bying crypto

How to Buy Crypto

The cryptocurrency market develops rapidly and the notion of cryptocurrency gets familiar for everyone. Once you decided to explore the crypto marketplace and are familiar with what is actually digital currency, then it is time to start with the main processes such as buying crypto. In the article, you will get to know how to buy crypto safely, how to choose your first currency to buy, and where to store it. 

Market nuances

Nowadays, there are more than 8,000 cryptos available on the market, according to CoinMarketCap. New coins appear and old ones disappear with the development of the industry. Buying crypto-assets is not an easy deal, as you should think carefully in order not to lose your money and investment. First of all, you should remember, that the cryptocurrency market is extremely volatile and unpredictable. Thus, it is essential to read about what factors can have an impact on price changes and market fluctuation. 

Also, you can buy the currency, based on the conclusion you made by yourself. Hence, do not rely on anyone in choosing the assets to buy, as no one can guarantee you the profit. The fundamental analysis is your friend in this complex task. If you are a broad-minded person, know what is going on in the world, can make a conclusion based on the facts, analyze the news, and how causal link works, then your journey in the crypto world is going to be a bit easier.

How to buy crypto?

Well, if you made up your mind about the crypto to buy, then it is high time to decide what services to use in order to buy crypto. You can use crypto exchange platforms, as a variant. Cryptocurrency exchange platforms work on the same principle: in one field you enter the source currency for exchange, and in another is the desired cryptocurrency (for example, bitcoins) and its quantity. The system calculates and shows the amount you will need to pay for the exchange. If you are satisfied with the offer, click “Exchange” and buy cryptocurrency with your card, e-wallet, or bank account for fiat currency. Thus, we can define such advantages of crypto exchange services as:

    • a wide range of crypto-assets available for buying;
    • you can see all rates changes online;
    • high speed of the client transactions;

Where to store crypto?

There is another point that you should take into consideration such as the place to store your crypto-assets. To store and spend your bitcoins, a bitcoin wallet is needed. In other words, bitcoin is a digital currency and is not stored anywhere. The main task of the wallet is to store your digital keys and provide access to the bitcoin address and the ability to sign transactions.

Types of crypto wallets

By the way, there is a cold and hot type of wallet. Firstly, you can create and then log in to your hot wallet from any device with Internet access. Basically, any registration on a crypto-currency exchange is already the creation of a hot wallet. The cold wallet is a device that looks like a flash drive, with its own software environment inside, storing your private key. 

The wallet can be accessed by connecting the device to a computer without installing any programs on the PC. It is important to choose a secure and protected cryptocurrency exchange, as it guarantees the safety of your money. You can alternatively decide to manage your keys and transfer them to your own physical wallet. Pay attention not to lose it, you would definitely lose access to your crypto. 

How to chose?

It is important to choose a secure and protected cryptocurrency exchange, as it guarantees the safety of your money. You can alternatively decide to manage your keys and transfer them to your own physical wallet. Pay attention not to lose it, you would definitely lose access to your crypto. 

Keep also in mind that cryptocurrency transactions cannot be reversed. The safety of your crypto-assets depends on how thoughtful your choice is.  If you lose or accidentally delete the private key, you will not be able to restore access to the wallet. This is why good wallets offer backup and reliable data protection. 

However, buying bitcoin or any cryptocurrency is not complicated when you are informed about market functioning and its features. Analyzing the news, events in the world, economic and political factors, you have all chances to buy crypto preventing possible risks.

Conclusions