Why is Ethereum price going parabolic?

The price of the world’s second largest cryptocurrency, ether, hit a new all-time high of US $ 1,440 (£ 1,050) on January 19. This breached a previous high set three years ago and gave ether a total value (market capitalization) of US $ 160 billion, although it has since fallen back to around US $ 140 billion.

Ether, which runs on a technology system known as the ethereum blockchain, is worth over ten times the price it was when it bottomed during the COVID market panic of March 2020. And the cryptocurrency is still only five years old. In part, this remarkable rise in the value is due to excess money flowing into all the leading cryptocurrencies, which are now seen as relatively safe store-of-value assets and a good speculative investment.

Ether / US $ price

But ether’s price rise has even outstripped that of the number one cryptocurrency, bitcoin, which “only” had a seven-fold increase since March. Ether has outperformed partly due to several improvements and new features being rolled out over the next few months. So what are ether and ethereum and why is this cryptocurrency now worth more than corporate giants such as Starbucks and AstraZeneca?

Ether and bitcoin

Blockchains are online ledgers that keep permanent tamper-proof records of information. These records are continually verified by a network of computer nodes similar to servers, which are not centrally controlled by anyone. Ether is just one of over 8,000 cryptocurrencies that use some form of this technology, which was invented by the anonymous “Satoshi Nakamoto” when he released bitcoin over a decade ago.

The ethereum blockchain was first outlined in 2013 by Vitalik Buterin, a 19-year old prodigy who was born in Russia but mostly grew up in Canada. After crowdfunding and development in 2014, the platform was launched in July 2015.

As with the bitcoin blockchain, each ethereum transaction is confirmed when the nodes on the network reach a consensus that it took place – these verifiers are rewarded in ether for their work, in a process known as mining.

But the bitcoin blockchain is confined to enabling digital, decentralized money – meaning money that is not issued from any central institution unlike, say, dollars. Ethereum’s blockchain is categorically different in that it can host both other digital tokens or coins, and decentralized applications.

Decentralised applications or “dapps” are open-source programs developed by communities of coders not attached to any company. Any changes to the software are voted on by the community using a consensus mechanism.

Perhaps the best known applications running on the ethereum blockchain are “smart contracts”, which are programs that automatically execute all or parts of an agreement when certain conditions are met. For instance, a smart contract could automatically reimburse a customer if, say, a flight was delayed more than a prescribed amount of time.

Many of the dapp communities are also operating what is known as decentralized autonomous organisations or DAOs. These are essentially alternatives to companies and seen by many as the building blocks of the next phase of the internet or “web 3.0”. A good example is the burgeoning trading exchange Sushiswap.

Ethereum has evolved and developed since its launch six years ago. In 2016, a set of smart contracts known as “The DAO” raised a record US $ 150 million in a crowdsale but was quickly exploited by a hacker who siphoned off one- third of the funds. However, since then, the ethereum ecosystem has matured ca However. While hacks and scams remain common, the overall level of professionalism appears to have improved significantly.

Why the price explosion

Financial interest in ether tends to follow in the wake of bitcoin rallies because it is the second-largest cryptocurrency and, as such, quickly draws the attention of the novice investor. All the same, there are other factors behind its recent rally.

The first is the pace of innovation on the platform. Most activity in the cryptocurrency space happens on ethereum. In 2020, we saw the emergence of decentralized finance (DeFi). DeFi is analogous to the mainstream financial world, but with the middleman banks cut out.

Users can borrow, trade, lend and invest through autonomous smart contracts via protocols like Compound, Aave and Yearn Finance. It sounds like science fiction, but this is no hypothetical market – approximately US $ 24 billion is locked into various DeFi projects right now. Importantly, DeFi allows users to generate income on their cryptocurrency holdings, especially their ether tokens.

The second factor behind the ether surge is the launch of ethereum 2.0. This upgrade addresses major concerns impacting the current version of ethereum. In particular, it will reduce transaction fees – especially useful in DeFi trading, where each transaction can end up costing the equivalent of tens of US dollars.

Ethereum 2.0 will also eliminate the wasteful mining currently required to make the ethereum blockchain function (the same is true of many other cryptocurrencies, including bitcoin). Within the year, ethereum should be able to drop the need for vast industrial mining that consume huge amounts of energy.

Instead, transactions will be validated using a different system known as “proof-of-stake”. The sense that ethereum addresses problems like these quickly rather than letting them sit could prove a major differential from the sometimes sluggish and conservative pace of the bitcoin development culture.

A final factor is the launch of ethereum futures trading on February 8. This means that traders will be able to speculate on what ether will be worth at a given date in the future for the first time – a hallmark of any mature financial asset. Some analysts have said the recent bitcoin rally has been fueled by traditional investment firms, and the launch of ethereum futures is often touted as opening the doors for the same price action.

However, as every seasoned cryptocurrency user knows, both currencies are extremely volatile and are as as extremes as rise by them. Bitcoin’s price fell 85% in the year after the last bull market in 2017, while ether was down by 95% at one stage from its previous high of US $ 1,428.

Whatever the valuation, the future of ethereum as a platform looks bright. Its challenge is ultimately external: projects such as Cardano and Polkadot, created by individuals who helped launch ethereum itself, are attempting to steal ethereum’s crown.

But as bitcoin has shown, first-mover advantage matters in cryptocurrency, and despite bitcoin’s relative lack of features it is unlikely to be moved from its dominant position for some time. The same is most likely true for the foreseeable future with ethereum.

Ethereum transactions as anonymity are evolving

An unknown user transferred 100,000 ETH (worth nearly $ 180 million) into an anonymous wallet. As the value of Ethereum continues to soar, these types of transactions have grown in popularity.

This is possibly the largest transaction ever made using Ethereum, a transaction worth $ 175,090,000 that was recently made. Fee charged for this transaction is $ 5.93. Lately there has been an increase in transactions with high volumes. In February, another anonymous user transferred $ 122 million XRP from their Coinbase account to an unknown wallet.

Both XRP and Ether are cryptocurrencies used to conduct daily high volume transactions. As of now, Ether holds the No. 2 spot by market cap, currently worth around $ 1,750 per coin. XRP looks solid in seventh place, with a value of $ 0.4476 per coin.

Unidentified wallet addresses are on the rise

Transferring large amounts of holdings to unknown wallets is growing in popularity. Although trading cryptocurrencies is anonymous, most exchanges (such as Coinbase and Kraken) still need a valid ID to own a digital wallet.

In fact, you can’t even sign up for an account without revealing personal information and deleting that information. Once the process is complete, your account will be active to trade, hold, buy or sell.

The high value of Ethereum is to be blamed

With Ethereum’s boom in value, anonymous transactions like this are likely to become the point of controversy. Many countries are opening meetings on crypto regulation. This is exactly the kind of stumbling block that regulators and legislators can point out. And it won’t be beautiful.

Ethereum’s circulating supply is no longer small. With 115,026,617 ETH in total circulation, 68.6% of its total supply is held in large accounts. Most of these hold more than 10,000 ETH, according to Santiment.

“When Ethereum rebounded above $ 1,685 today (March 7), the whale (which holds more than 10,000 ETH) now owns 68.6% of the total supply for the first time in 10 days. This is the highest% owned by whales since November 2017. Meanwhile, 10 to 10,000 sites own the lowest% since September 2017.”

Blockchain and NFT

Ethereum’s blockchain network was soon famous for its ease of creating and running smart contracts on its platform. This network is famous for decentralized applications (Dapps.) Dapps actually integrate ETH to pay the network fees that the platform itself provides.

The tokens are not limited to holding monetary value. They can be tied to a variety of assets, practically anything the developer chooses. These assets can include things like certificates of ownership, stocks, gold, digital artwork, and more. In addition, developers have become very creative in asset encryption and value-building, sometimes with wealth. Furthermore, tokens can be easily exchanged or traded on a peer-to-peer basis.

What is Ethereum Name Service?

In the early days of the web, to access a website you needed to enter an IP address, a string of numbers that is difficult to remember and almost impossible to guess. After that, the web surfing process becomes simpler with names that are easy for people to read. Likewise, the current cryptocurrency is like the IP address phase: users have to use long, hard to remember addresses to access the services they need. That’s where the Ethereum Name Service comes in. The system makes it easier to use cryptocurrencies like surfing the web.

The following article will explore how it works, where it comes from, and how you can secure an emoji domain name.

Ethereum Name Service (ENS) price, marketcap, chart, and fundamentals info

Simply put, ENS is a lookup system. It links information to a name. ENS is not an Ethereum-only naming service, it is a service built on top of Ethereum. The system provides a secure and decentralized way to deal with resources using human-readable names. This is a fully decentralized domain name provider, allowing people to buy and manage domain names, meaning you can send ETH or ERC20 tokens to “realsatoshi.eth”, instead of “8e866f012fb8fb”.

Who invented the ENS?

Nick Johnson and Alex Van de Sande of the Ethereum Foundation were the builders of the early ENS development.

What’s so special about ENS?

ENS is built on Ethereum smart contracts, so it’s more secure, private, and censorship-proof than the Internet’s Domain Name Service (DNS). The ENS operating team considers internet-named infrastructure a fundamental component and should therefore be open, decentralized, community-oriented and non-profit. On a technical level, ENS is able to utilize the existing Ethereum ecosystem i.e. have high programmability and interact with smart contracts other than naming.

Anything else?

Unlike some competitors, ENS does not want to replace DNS. ENS prioritizes providing reliable, decentralized domain resolution for Web3 resources such as blockchain addresses and decentralized content, while Namecoin, Blockstack, and Handshake are working to replace DNS.

The nature of ENS

Under the hood, ENS are basically 2 smart contracts. The ENS Registry records all domains and subdomains, as well as owner’s details, and links to Resolver (another smart contract that handles translations from name to address or account type. and vice versa).

ENS functions similarly to the Internet’s DNS in that it has a hierarchy that allows the domain name owner to control all the subdomains. So realsatoshi.eth can create wallet.realsatoshi.eth and email.realsatoshi.eth.

How to get your own ENS domain name?

By using an Ethereum wallet like MetaMask, you can go to manager.ens.domains to search for available domain names. Once you have found your domain name, the system will guide you to register and request confirmation of 2 transactions from your wallet. You will also have to choose the time (year) you want to register a domain name for $ 5 / year. Now, as the domain name owner, you can set up various addresses or information that you want that name associated with as well as any subdomains.

What can you do with ENS?

The best thing to do with ENS is to replace a long, unreadable Ethereum address with a friendly, easy-to-remember ENS address like realsatoshi.eth. This makes it easy to get crypto assets as well as import ENS addresses into Ethereum applications without having to copy and paste long, zigzag public addresses.

Additionally, the decentralized web is being built on top of a partnership between ENS and the IPFS file storage system. A great place to start is at almonit.eth which seeks to find a directory of decentralized websites. You can visit this website because it allows MetaMask or thanks to the Web3 connection and internet DNS efforts you can add .link to decentralized websites and access them without MetaMask or browser especially.

Future

ENS isn’t just .eth. It’s just a top-level domain, and ENS plans to integrate the entire DNS namespace including more than 1,300 top-level domains so that DNS site owners can use that name on the ENS. It’s not .eth but also .org. So realsatoshi.org can be linked to realsatoshi.eth and visitors view the content, send money to the same location.

What is Yield Farming?

The Decentralized Financial Movement (DeFi) is one of the forces at the forefront of blockchain innovation. But what makes DeFi apps unique? It’s permissionless, which means that anyone (or anything, like a smart contract) with an Internet connection and a supported wallet can interact with them. In addition, DeFi applications will save users from having to fret about their trust in any custody organization or middleman. In other words, they don’t need trust. So, what new use cases do these properties get enabled?

One of the new concepts that has emerged is yield farming, which is a new way of earning rewards from existing crypto assets using unauthorized liquidity protocols. Accordingly, anyone can earn passive income using the decentralized ecosystem built on top of Ethereum. Therefore, yield farming can change the HODLing way of investors in the future. Why keep your assets idle while being able to operate them?

What is Yield farming?

Yield farming is also known as liquidity mining, which generates rewards from crypto assets. In simple terms, it means locking in a cryptocurrency and getting a reward.

In a sense, yield farming can be done in parallel with staking. However, there are many complications. In many cases, it works with users called liquidity providers (LP) to add funds to liquidity pools.

What is a liquidity pool? Basically, a smart contract contains money. In return for providing liquidity to the pool, LP will receive a reward. That reward could come from fees generated by the basic DeFi platform or some other source.

Some liquidity pools pay rewards in multiple tokens. After that, the bonus tokens can be deposited into another liquidity pool to earn the next bonus, … You can see a lot of extremely complex strategies but basically LP depositing money into a liquidity pool. and in return a reward is earned, seen as a profit.

Yield farming is usually done using an ERC-20 token on Ethereum and the reward is usually an ERC-20 token. However, this could change in the future as most of this activity is happening in the Ethereum ecosystem now but is expected to be different.

Besides, cross-chain bridges and similar advances could allow DeFi application to become blockchain agnostic in the future. This means they can be run on other blockchains that also support the smart contract feature.

Yield farmers (profit farmers) will usually move their money pretty much between different protocols in search of high returns. Therefore, DeFi platforms can also provide another economic incentive to attract more capital to the platform. Just like on centralized exchanges, liquidity tends to attract more liquidity.

What makes yield farming explosion?

The sudden strong interest in yield farming could be due to the launch of the COMP token – the governance token of the Compound Finance ecosystem. An administrative token grants administrative rights to the token holder. But how to distribute these tokens if you want to make the network as decentralized as possible?

A popular way to start a decentralized blockchain is by distributing algorithmic governance tokens, with liquidity incentives. This attracts the liquidity provider to “mine” the new token by providing the protocol’s liquidity.

Although the yield farming invented, but the COMP launch event helped this type of token distribution model become more popular. Since then, other DeFi projects have come up with innovative plans to lure liquidity to their ecosystems.

What is Total Locked Value (TVL)?

So, what is a good way to measure the overall yield of yield farming on DeFi? The current most effective answer is the total locked value (TVL). The index measures the amount of crypto locked in DeFi lending and other currency market types.

In a sense, TVL is total liquidity in liquidity pools, so it is a useful indicator to measure the state of DeFi and yield farming market in general. It is also an effective metric for comparing the “market share” of different DeFi protocols.

A pretty good destination to monitor TVL is the Defi Pulse. Here, you can check which platform has the highest amount of ETH or other cryptocurrencies locked in DeFi. Accordingly, it can give you an overview of the current yield farming state.

Of course, the more values ​​that are locked, the more it proves that yield farming continues to grow. It is worth noting that TVL can be measured in ETH, USD or even BTC. Each will give you a different perspective on the state of the DeFi money market.

How does Yield farming work?

Yield farming is closely related to a model known as automatic market maker (AMM). It typically involves liquidity providers and liquidity pools.

The liquidity providers deposit money into the liquidity pool. This pool powers the marketplace where users can lend, borrow or trade tokens. The process of using the platforms incurs fees, which are then paid out to the liquidity providers according to their market share in the liquidity pool. This is the working foundation of AMM.

However, implementations can be very different, not to mention a new technology. More than that, we will see new approaches that are refined from current implementation practices.

In addition to fees, another incentive to add money to the liquidity pool could be the distribution of new tokens. Example: When there is no way to buy tokens on the open market in small amounts. On the other hand, can accumulate by providing liquidity for a particular pool.

All distribution rules will depend solely on the protocol implementation. The bottom line is that liquidity providers receive profits based on the amount of liquidity they are providing to the pool.

Funds deposited are usually stablecoins pegged in USD although this is not a general requirement. Some of the most popular stablecoins used in DeFi are DAI, USDT, USDC, BUSD, … Some protocols will mint tokens representing the amount of money you have deposited into the system. For example, if you send DAI to Compound, you will get cDAI (Compound DAI). If you deposit ETH into Compound, you will get cETH.

As such, many complex problems will arise. You can send your cDAI to another protocol that mints a third token to represent cDAI and cDAI represents your DAI… These chains can get really messy and difficult to track.

How is yield farming profit calculated?

Usually, the estimated yield yield for yield farming is calculated annually. Accordingly, estimate the profit you can expect over the course of a year.

Some of the commonly used metrics are Annual Percentage (APR) and Annual Percentage Rate (APY). The difference between them is that APR does not take into account the effect of compound interest, while APY does. In this case, compounding means directly reinvesting profits to make more profits. Note, however, that APR and APY can be used interchangeably.

Emphasize that these are only estimates and projections. Even short-term rewards can be difficult to accurately quantify. Why? Yield farming is a highly competitive and fast-paced market, and the rewards can fluctuate quickly. If the yield farming strategy is effective in a while, many farmers will take advantage of the opportunity, limiting high profits.

Since APR and APY come from legacy markets, DeFi may need to find its own metrics to calculate profitability. Due to DeFi’s rapid growth, estimated profit weekly or even daily will make more sense.

What is Mortgage in DeFi?

Usually, if you are borrowing property, you will need to have collateral to cover your loan. This is basically the same as securing the loan.

If the value of the collateral falls below the threshold required by the protocol, it can be liquidated on the open market. So what should be done to avoid being liquidated? That is to continue adding more collateral.

Again, each platform will have its own set of rules for this, i.e. their own required mortgage rates. In addition, they often operate with a concept known as over-mortgage, which means borrowers have to put in more value than they want to borrow. Why? To minimize the risk of market collapse, liquidation of a large amount of collateral in the system.

So let’s say the loan protocol you are using requires a mortgage rate of 200%. This means that for every $ 100 of value you put in, you can borrow $ 50. However, usually it is safer to add more collateral than necessary to reduce the risk of liquidation. With that said, many systems will use a very high mortgage rate (say 750%) to keep the entire platform relatively safe from the risk of liquidation.

Risk of yield farming

Yes, actually, yield farming is not simple. The yield farming strategies that yield the highest returns are complex and are recommended only for savvy users. In addition, yield farming is usually more suitable for entities with a lot of capital to implement (ie whales).

Yield farming is not as easy as you imagine and if you do not understand what you are doing, you can lose money. We just discussed the risks of collateral liquidation. But are there other risks that need attention?

One obvious risk of yield farming is a smart contract. Due to the nature of DeFi, many protocols are built and developed by small groups on a limited budget. This can increase the risk of smart contract errors.

Even in the case of larger protocols tested by many reputable auditing firms, vulnerabilities and errors are discovered continuously. Due to the immutability of the blockchain, it can lead to the loss of users’ money. You need to take this risk into account when locking your money in a smart contract.

In addition, one of DeFi’s greatest strengths is also one of its biggest risks. That is the idea of ​​association. Let’s see how it affects yield farming.

DeFi protocols need no permission and can be seamlessly integrated with each other. This means that the entire DeFi ecosystem is heavily dependent on each building block. As such, applications can be combined and easily work together.

But why is this a risk? Well, if just one of the building blocks doesn’t work as expected, the entire ecosystem could be affected. This is what causes one of the biggest risks to yield farmer and liquidity pool. Not only do you have to trust the protocol you send money to, you also have to trust all other protocols.

Typical yield farming platforms and protocols
How to earn this yield farming reward? Sadly, there is no specific way to implement yield farming. In fact, yield farming strategy can be changed hourly. Each platform and strategy will have its own rules and risks. If you want to start yield farming, you must be familiar with how decentralized liquidity protocols work.

Basically, users deposit money into a smart contract and earn rewards in return. But implementations can vary greatly. As a result, it is generally not a good idea to send money blindly and hope to get a high return. Following the fundamentals of risk management, you need to be able to be in control of your investments.

So, what are the most common platforms the yield farmer uses? Below are a few of the core protocols that users can create in order to create the appropriate profit farming strategies.

Compound Finance

Compound is a cryptocurrency marketplace that allows users to lend and borrow property. Anyone with an Ethereum wallet can supply assets to Compound’s liquidity pool and earn rewards that immediately start calculating compound interest. The interest rate is adjusted algorithmically based on supply and demand.

Compound is one of the core protocols of the yield farming ecosystem.

MakerDAO

Maker is a decentralized credit platform that supports creating DAI, algorithmically fixed stablecoins with value in USD. Anyone can open Maker Vault where collateral is locked, such as ETH, BAT, USDC, or WBTC. They can create DAI as a liability on the collateral they have locked in. This debt is subject to interest over time known as a stability fee – the rate set by the MKR token holder.

Yield farmer can use MKR to cast DAI and be used in yield farming strategies.

Synthetix

Synthetix is ​​an aggregated asset protocol that allows anyone to lock (stake) SNX or ETH as collateral and mint aggregate assets. What is aggregate assets? The fact that anything has a reliable price feed allows virtually any financial asset to be added to the Synthetix platform.

Synthetix can allow all property types to be used to make yield farming in the future. Do you want to use your long-term Bitcoin in yield farming strategies? Synthetic assets can be the effective path.

Aave

Aave is a decentralized protocol for lending and borrowing. The interest rate is adjusted algorithmically, based on current market conditions. Lenders receive “aTokens” in exchange for their money. These tokens immediately start making money and calculate compound interest based on the deposit. Aave also enables other advanced functions, such as quick loan.

As a decentralized lending and borrowing protocol, Aave gets the farmer yield used a lot.

Uniswap

Uniswap is a decentralized exchange (DEX) protocol that allows trustless token swaps. Liquidity providers deposit the equivalent value of two tokens to create the market. The traders can then trade in the liquidity pool. In return for providing liquidity, providers earn fees from the transactions that occur in their pool.

Uniswap is one of the most popular platforms for trustless token swaps due to its frictionless nature. This can be useful for yield farming strategies.

Curve Finance

Curve Finance is a decentralized exchange protocol specifically designed for efficient stablecoins swaps. Unlike other similar protocols like Uniswap, Curve allows users to perform high-value stablecoin swaps with a relatively low reduction (spread).

As you can imagine, due to the abundance of stablecoins in the yield farming context, the Curve pool is an important part of the infrastructure.

Balancer

Balancer is a liquidity protocol similar to Uniswap and Curve. However, the main difference is that it allows the allocation of custom tokens in the liquidity pool. Accordingly, liquidity providers create custom Balancer pools instead of allocating 50/50 as required by Uniswap. Just like with Uniswap, liquidity providers earn fees for the transactions that occur in their liquidity pool.

Thanks to the flexibility that the protocol provides for liquid pool creation, Balancer is an important innovation for yield farming strategies.

Yearn.finance

Yearn.finance is a decentralized ecosystem that aggregates lending services like Aave, Compound, … It aims to optimize token lending by finding the most profitable loan services algorithmically. Funds are converted to yTokens upon deposit for periodic rebalancing to maximize profits.

Yearn.finance is useful for farmers who want a protocol to automatically choose the strategies that are best for them.

Conclude

After yield farming, what else can the decentralized financial revolution bring about? It is not possible to predict what new applications may emerge in the future built on these existing components. However, trustless liquidity protocols and other DeFi products are undoubtedly at the forefront in the fields of finance, cryptocurrency economics and computer science.

Without a doubt, the DeFi money market can help create a more open and accessible financial system for anyone with an Internet connection.

Difference between NEO and Ethereum

What is the difference between NEO and Ethererum? That is the question we often get, especially because they are supposed to be identical. In the world of Cryptocurrency, NEO is considered the “Ethereum of China” because people think it is the “Chinese version” of the North American crypto network Ethereum.

But that was a complete mistake. The two currencies are different and investors need to understand that.

To put it simply, think Ethereum is your first generation Smart TV and NEO is the next generation Ultra 4K HD TV. This comparison couldn’t be any simpler.

Both NEO and Ethereum offer decentralized solutions for their users, allowing them to share anything of value (such as money, real estate papers, confidential data …) privately and secure, without the supervision of a third party like a bank, government organization or private business.

But NEO is equipped with more advanced features, faster, safer, and more user-friendly than Ethereum.

4 differences between NEO and Ethereum

First, NEO is more scalable than Ethereum. This simply means it can process more transactions per second compared to Ethereum. Is it any big deal? Yes, because it will save you time.

Let’s say you send and receive money for someone using Ether (Ethereum’s crypto token) but there are already about 1000 people lining up in front of you. That means you have to line up and wait for your turn. With NEO, however, your waiting time is significantly reduced.

The current Ethereum network capacity is 15 transactions per second (although the founders of Ethereum are trying to scale it). In contrast, NEO can process 1000 transactions per second.

Second, NEO is more user-friendly (developer-friendly, rather), because it supports more programming languages ​​than Ethereum. It’s like going to a Chinese restaurant with dozens of dishes on the menu. With the NEO cryptocurrency, you can only choose the “Happy Meal” portion. Since NEO targets a diverse range of users, it has a much better chance of gaining popularity earlier than by Ethereum.

With more developers on its platform, it is likely that NEO will create a large number of DApps in the long term. DApps are practical applications including the use of this cryptocurrency.

Third, NEO ensures integrity in the value of your investment. It is built in such a way that it does not allow unexpected hard forks to split its network. This is in contrast to Ethereum, which underwent an unexpected hard fork splitting its network into two, creating Ethereum and Ethereum Classic – two separate cryptocurrencies.

Are you feeling confused? That’s what Ethereum investors went through when they first learned of the split. Essentially, some Ethereum investors found holes in the network and disagreed with how the founding team solved the problem, so they split the network and created a Blockchain with cryptocurrency. their own.

In the end, the average Joe guys who had lost sleep were wondering what would happen to their investments. The hard fork event created an air of uncertainty, and NEO wanted to deal with such incidents by not allowing hard forks to happen on its network.

Fourth, the biggest difference between NEO and Ethereum is “GAS” – a unique reward distributed by NEO to investors holding NEO coins. GAS is a form of dividend paid out by the network to owners of NEO tokens. That’s right, a dividend!

Unlike Ethereum where the reward is distributed only to Ether miners, NEO rewards all NEO holders with dividends because NEO tokens are not mined.
Well, that sounds like a push to own this coin.

Here is a summary of the differences between NEO and Ethereum:

NEO and Ethereum: Where should I invest?

At a glance, NEO will be much better than Ethereum. But don’t rush.

Don’t forget Ethereum is still the second most valuable cryptocurrency in the world, in terms of market capitalization. On top of that, the founder of Ethereum – Vitalik Buterin recently revealed the future roadmap of the next version of Ethereum technology – Ethereum 2.0 – then NEO will be nothing compared to Ethereum.
This leaves them in a confused situation: should we buy Ethereum or NEO?

So, why choose once you can have both “ten and ten”?

The point is this, there are over 1300 cryptocurrencies in existence. Of course you can’t buy them all, but there’s no rule that prohibits you from buying more than one.

It is clear that both Ethereum and NEO have their advantages and disadvantages. However, their advantages outweigh the repositories compared to most other cryptocurrencies.

NEO and Ethereum: Future potential
When comparing the price history of Ethereum and NEO it can be seen that both of these coins used to be great investments in 2017.

Both have grown exponentially so far, so at their pace, this could continue in 2018.

Both Ethereum and NEO offer promising prospects. As mentioned earlier, Ethereum 2.0 is in the works and once it launches, it could be a game changer. Ethereum is already the second largest Blockchain network after Bitcoin, and can still ensure its growth in the coming years.

Ethereum’s price is currently at $ 850 and is expected to reach over $ 1,000 this year, which was mentioned in Ethereum’s 2018 price forecast.

Globally, NEO, nicknamed “Ethereum China” is implementing plans to expand its network. The NEO founder shared his plan to take the market out of China. Meanwhile, NEO is expanding in the country, where there is support from the Chinese government.

NEO’s coin price is hovering around $ 120 and it is expected that NEO price in 2018 will stand firm at $ 100 – $ 200.
However at this point, I need to warn me that even though NEO has grown 5 digits in return, it can be called a volatile investment. Its route has too many ups and downs followed by sudden drops. On the contrary, Ethereum is more stable.

So if the risk is too much for you, you can still choose a firmer path.

Analysis:

The difference between NEO and Ethereum is too obvious to be ignored. NEO – “The Ethereum of the East” is not the same as the real Ethereum. Obviously, if the two are the same, then there is no incentive for investors to choose NEO over the more popular Ethereum.

If you ask who won the battle of NEO and Ethereum, I have to confess that I cannot tell you who won. But the bull market in cryptocurrencies continues in 2018, with both NEO and Ethereum likely to deliver high returns on investment.

At the end of the day your choice will depend on the size of your nest egg. For a total of $ 5,000, you can only buy 10 ether. Conversely, you can buy 10 NEO coins for as little as $ 330 and still have enough money to invest in something else.

Remember that diversifying your portfolio will limit your risk and deliver better returns. So invest wisely!

What is ERC20 Token Ethereum?

ERC20 is short for “Ethereum Requetst For Coment” This technology is an innovation proposed by experts that has just been officially accepted in the Ethereum Network system, and this system has a unique ID of 20.

Currently, ERC20 technology will be a unified standard for tokens used on the Ethereum Network platform.

Distinguishing tokens using ERC20 technology
You can easily identify what is a regular token and a token using ERC20 technology with the following image.

If you pay attention, the tokens using ERC20 technology will have an additional 0x and these tokens are bought with ETH. These tokens you can easily store at MyEtherWallet and share the same ETH wallet address.

Tokens that use ERC20 technology when you want to send someone a small fee per transaction. However, the processing speed for each transaction is extremely fast that tokens cannot compare.

One thing that I really like about ERC20 technology is combined with Smart Contracts (smart contracts). This will help you transact more safely, in case you send Token to someone else but the wrong wallet address, this technology will report the wallet address error and you can not send Token to others. This is great and it will help you to protect your property as best as possible.

All tokens using ERC20 technology are built on the Ethereum Network’s BlockChain platform. The wallet address of ETH is also the address of the tokens using the ERC20 platform.

Tokens using ERC20 technology are becoming more and more popular. According to statistics at the beginning of 2018, most of the tokens issued to the market were used on the ERC20 platform. In the future, this technology will dominate the market and will be the best platform for developing new types of tokens.

What is Wei? 1 ETH equals how many Wei

Wei is the smallest denomination of ether, the cryptocurrency used on the Ethereum network.

As the prices of various cryptocurrencies, including ether, skyrocketed in 2017, transaction sizes have become smaller.

To accurately denote the number of transactions that may appear to be a very small fraction of ether but of high value when converted to US dollars or other real-world currencies, new units have been created to define and accurately support transactions.

Wei is named after Wei Dai, a crypto activist who is known for supporting extensive use of strong encryption technologies and security-oriented.

1 Ether (ETH) = 1,000,000,000,000,000,000 Wei (1018)

Ethereum is a new land for coding

Pelle Braendgaard is a veteran programmer. At the age of 12, he used to go to his local computer store in Denmark to write BASIC code on the Sinclair 8-bit ZX Spectrum. In 1993, he stumbled across Mosaic, the first graphical web browser while accidentally manipulating the UNIX command line on a university computer. He quickly fell in love with the website and found a job as a webmaster for AltaVista, a pioneering search engine.

With a mixed Danish and American accent, Braendgaard says: “In the early days, you really had to find it all by yourself. We all have to learn everything… there are no good libraries. There is no good development tool ”.

The site has matured ever since, but Braendgaard has left. Now, he is writing decentralized applications, or “DApps” for Ethereum, a technology based on encryption. It’s a field as promising as the web of the 1990s. It offers the same novelty and opportunity to make an impact.

Ethereum is not just a new digital currency, it is a new kind of decentralized computer that no one has control over but can be seen by anyone. On this machine, a new generation of applications, called DApps, was born.

How can Ethereum be a cryptocurrency and a computer at the same time? Instead of running on a laptop or server, it runs on thousands of PCs at the same time, all synchronized with blockchain technology. In its simplest form, blockchain is an ordered list of items to which all computers agree. On Ethereum, that list is made up of programmable computer states (numbers 1 and 0). Anyone can pay (Ether, not dollars) to run their code and thus change the state of the computer. Mining rabbits put their machines in a random math race for a chance to choose which code to run next (that is to add the next block of 1s and zeros to the list) and collect a fee. relate to.

This system is called the Ethereum Virtual Machine (EVM), or more commonly known as the “world computer”. The code is run publicly, but the user has an alias. It is like Amazon Web Services, except that instead of Amazon being the seller and the user is the buyer, the user can play the role. There is no individual control of the system. That makes Ethereum something truly new, something that has never appeared before.

Decentralized applications (DApps) are programs that run on the world’s computers. However, “run” may not be the right word because Ethereum-the-computer is terribly slow and coding for it is like turning the digital clock back for decades. Currently, computations on EVM are too expensive and inefficient to run a modern web-based service like Twitter. Even storing a profile picture would cost hundreds of dollars and now the network can only run about seven transactions per second. (For comparison, Facebook runs 25,000 transactions per second on searches alone. Software change can speed up some things, but Ethereum has always been slower than a regular computer.

It’s a cumbersome system, but that doesn’t stop developers from writing Ethereum programs. They are drawn to what the platform earns by spending all of those additional resources. DApps are small, interconnected scripts to transfer money and connect users. They are very good at coordinating multiple computers to perform tasks in exchange for currency without any central oversight. This decentralization is Ethereum’s biggest attraction. DApps don’t need to trust the benevolence of central administrators like Amazon to run the code or in payment systems like PayPal or banks to change money.

Blockchain theorists have a name for this decentralized protection from outside interference: They call it “trustlessness” – “distrust” and that’s at the core of many DApps. (This term is confusing, because it sounds like a label for something you can’t trust. If a voting DApp is used in a presidential election the DApp can count the votes themselves and all votes will be anonymized, but anyone can see the code has counted them and the system will be immune to interference from foreign countries, Russia for example Braendgaard is the lead engineer of another DApp called uPort.This DApp uses trustlessness to allow users to manage their own identities Users can prove their identity to other apps, but, unlike when logging into the app via Facebook or Google, they can do so without having to trust vendor focused.

Ethereum is also being used to create a bunch of new markets built on trust principles. This is really pleasing to tech people. Project Golem describes itself as “AirBnB for computers”. Users can either sell the machine’s unused computing power or buy it from someone else. Users first used it to process CGI images on strangers’ computers. These acceptors don’t need to believe that Golem will pay them for their computation time or that the code will run as promised; transactions are guaranteed by the openness of the network. In the future, Golem could be an alternative or even a challenge to current cloud hegemony.

Gnosis is another well-known marketplace DApp. It’s a prediction market, meaning users can bet on the outcome of events (e.g. will Roger Federer win the Australian Open?) And askers can capitalize on the wisdom of events. crowd to better predict the outcome of the event. Prediction markets have existed in the past, but they have always been tightly controlled and reliant on trust in a central source to determine the correct answer and withdraw money. “With Gnosis, we’re not just using Ethereum for payments. We are using it to build the core of the prediction market, ”said Martin Köppelmann, co-founder of Gnosis. “Before, people had to send money to our company, our company would keep the money and then we send it back. Now the big difference is that it’s actually on par. We don’t touch users’ money.

Ethereum itself and all the code that runs on it are open source and public, so if the user is technically savvy, they can verify how much they will be charged and see the code. How safe is this. On traditional apps, users had to blindly trust developers to charge them appropriately and protect their credit card information. Phil Daian, Ph.D. at Cornell’s Initiative for Cryptocurrencies and Contraction said: “On Ethereum, the need for security is shifted to platform users, which can be good or bad. If you are a system knowledgeable user, you will have all the necessary information. If you do not understand like my grandmother then that may be beyond your security capacity.

Identifying the security code on Ethereum is not a task for the digitally underdog and neither is coding. Ethereum ties the code and currency together so tightly that a security hole could cause enormous cost. A recent vulnerability in Parity Wallet, a popular DApp that stores users’ ether assets, allowed hackers to steal $ 30 million worth of Ether from DApp users. The reason is just missing a single word.

The loss of security vulnerabilities makes writing Ethereum code a difficult task. In the Parity Wallet attack… a small accident caused millions of dollars in damage. You have to think about these types of security holes and security flaws.

Most people don’t worry about the apps they use to mishandle their money, because the law restricts them from encountering credit card fraud. The DApps make no such guarantees. Decentralization and anonymity make the law and regulation enforcement of Ethereum difficult, if not impossible. Instead, users depend on their own technical knowledge and members of the community to spot scams. In addition, DApps like Gnosis can be used for illegal purposes. There are many moral dangers. Daian commented on Ethereum prediction market: “I can bet a million dollars that you will be alive on Monday. If someone wants to assassinate you, they will choose the other side of the bet, kill you and take my money.

Ethereum has such a range of dangers but for developers like Braendgaard. That’s what makes it so interesting again. Like the internet in the early 1990s, the network was largely undeveloped by programmers, untapped by businesses and incomprehensible to the general public.

Ethereum is still waiting for its killer DApp, the email equivalent. The network simply may not be ready yet and there is no guarantee it will exist. But developers like Köppelmann are confident it will improve. You said we were the internet in 1994. If you had the vision in 1994 to create YouTube it would be a beautiful vision, but that’s not possible. Ethereum’s early developers saw too much potential in the network and believed it would turn out to be something new. Developers are betting on their time and code. And sooner or later, just like Netscape did with the internet, a DApp will bring the world to Ethereum. And one of them will write it.

What is Gwei? What is gas?

Similar to various small value currencies circulating for real-world fiat currencies such as nickel, coins, and penny, some denominations have become commonplace in the crypto world to indicate values. Different segments of a particular token.

With ETH price increasing in 2017, the transaction size has become smaller. Suppose, if 1 ETH = 800 USD, then one would only need to spend part of ether (0.0025 ETH) for the equivalent of 2 USD. Other fractional costs, like mining fees, can be even smaller in value, which makes it difficult to quote long fractional values ​​(like 0.000034243 ETH).

New digital currency denominations are gaining popularity that help accurately denote smaller transactions that appear to be a very long fraction in terms of ether, but highly valuable when converted to US dollars or money. Other fiat currencies.

Gwei is also known as shannon, nanoether, or simply nano, to denote the ninth power in the ether fraction.

You can use Myetherwallet’s tool to calculate GWEI <-> WEI <-> USD here, which can be helpful when you want to know your transaction fees in ETH, instead of GWEI.

What is gas?
Gas is the internal cost of performing a transaction or contract in Ethereum.

The concept of using a separate unit (gas price) instead of the network’s default token, ETH. It separates the units of Ether (ETH) from the market value. Therefore, a miner can decide to increase or decrease the gas usage according to his / her needs.

For example, imagine that miners claim 1 / 10,000 ether for a mining run. If they then wanted to increase mining fees by 25%, it would go up to 1/8000 ether. This increase in mining price will start to affect the price of ether in fiat currencies like the US dollar, VND maybe that’s not the ideal way.

Instead, if the mining job is quoted in a separate unit, like the gas price, and this value would be 1 / 10,000 ether, the increase (or decrease) could be addressed by change gas price. For an equal 25% change, miners will get the same benefit if the gas is changed to be 1 / 8,000 value. That keeps the ether market price independent of the units required to use network computing.

What is the EEA? Learn about Corporate Alliance using Ethereum

The Enterprise Ethereum Alliance (EEA), a consortium coalition that uses Ethereum (EEA) is narrowing the gap between institutions and the applications of public and private blockchain technology.

According to the website Enterprise Ethereum Alliance (EEA), this alliance is a member-run standards organization whose charter is to develop open blockchain specifications that promote harmony and interoperability for businesses and consumers around the world.

Members of the EEA global community are made up of leaders, adopters, innovators, developers and businesses who collaborate to create an open, decentralized website for the benefit of everyone.

In essence, the EEA is a space for institutions to share knowledge and promote widespread adoption of the Ethereum protocol among institutional payers.

Some of its founding members are Accenture, EY, Ethereum Foundation, a banking conglomerate (including BBVA and Santander), and other key companies in various industries.

EEA stack

One of the first papers I came across while studying the EEA was how the alliance motivates its architectural stack. In my opinion, it is important to understand how different protocols, software, and dApps will communicate with other blockchains and with each other.

You can see the EEA’s proposed architecture stack below the alliance’s website.

Personally, I believe that the EEA stack’s ultimate goal is to promote widespread adoption of the Ethereum blockchain by making it more accessible and scalable.

At the base of the stack, we have the network protocols in use. At the time of writing, there was only one public protocol, the Ethereum protocol, available. On the network protocol, we have ledger and consensus mechanisms in the core blockchain layer.

Stack shows how many algorithms can be used (PoW, PoA, dBFT, etc.) with the goal of increasing the number of storage solutions both on-chain and off-chain to increase speed while maintaining levels high security. Execution is done through the Ethereum virtual machine (EVM) or through pre-agreed contracts.

On another level, we will see how businesses communicate with different protocols. It can add any amount of features like increased centralization, privacy, or any other licensing check. In essence, the EEA could introduce private blockchain solutions that are somehow similar to Ethereum’s functionality.

In the above two levels, we see both the tools and their respective applications. In short, tools are used by developers to facilitate communication between blockchain applications and layers, such as wallets or integrated libraries. In the application layer, applications like standard token (ERC), identity management, or Ethereum Name Service (ENS) exist in the form of programs (smart contracts).

Recommended use cases

There are several use cases suggested by the EEA to facilitate the adoption of blockchain technology.

The most notable cases that can be found on GitHub are:

• International payments
• National smart contract platform
• Cross-value adjustment
• Securities liquidity management
• Anonymous voting system

With the introduction of predetermined modules to apply the entire development stack, there is an added incentive for companies to pursue this technology. Enforcement not only becomes easier with many proven use cases, but organizations also have quality documentation issued by EEA members at their disposal.

In short, the Enterprise Ethereum Alliance is bridging the gap between public and private blockchain technology organizations and applications.