Ethereum, bitcoin and other cryptocurrencies has revolutionized the present day fintech industry. While the most prominent application of blockchain is the creation of alternative digital currencies, technically and popularly known as Cryptocurrencies today, it is not limited to just creating digital tokens. We all have witnessed how the first cryptocurrency “Bitcoins” changed the way we used to transfer money by providing its owners with greater security and anonymity, Ethereum, the second generation cryptocurrency has opened new doors for businesses to have their own tokens protected by a smart contract.
Ethereum – Why is it different than other currencies?
Ethereum can be rightly attributed as the second generation of cryptocurrencies. Most cryptocurrencies including Bitcoins can be used for a peer to peer transfer of funds, but Ethereum has enhanced functionality. On top of financial functions like transferring of funds, Ethereum provides for other features as well.
- Data Storage – Ethereum’s Blockchain allows for decentralized data storage and transfer which wasn’t possible with Bitcoin’s protocol.
- Developing your own token – New tokens with separately defined function can be developed on top of Ethereum’s Blockchain. Today, most startups and businesses are developing their own token on top of Ethereum’s Blockchain.
- Smart Contracts – Ethereum allows for a smart contract and that removes the need for intermediaries to implement a contract. Smart contracts are encrypted codes that define the nature of transactions and a use and functions of the newly developed tokens on top of Ethereum’s blockchain. Moreover, the transactions with Ethereum smart contract protocol are completely irreversible and they can be tracked.
Ether Token- eth price
Ethereum’s token is called Ether and is traded as ETH. While in 2017 the bitcoin prices were shooting up the ETH price was only second to Bitcoins. Currently, Ethereum’s Eth price is around $530 according to coin market cap. Also, it the second highest market capitalization with 99,760,946 ETH in circulation. The Eth is also one of the most highly traded tokens on popular exchanges. One can purchase Ethereum on from any popular crypto exchange and can store them in their ether wallet.
Ether is Ethereum’s token and one can store their ether tokens in a wallet. Today, Ethereum is one of the most popular Blockchain with a market capitalization second only to Bitcoins. So if you’re looking forward to owning Ethereum’s ether token you must be thinking how to get store Ethereum in my Etherwallet?
Because Ethereum is a very popular alternative currency the its risk of being stolen or hacked is also high, however, there are many secure Etherwallets available for storing your Ether tokens.
There are 4 different kinds of wallets that you can use to store your Ether tokens:
- Hardware wallets – If the security of your ether token is your concern, hardware Etherwallets are one of the most secure wallets. With your private keys encrypted within the hardware wallets ensure that your tokens are safe.
- Desktop wallets – These are downloadable wallets which you can install on your desktop.
- Online wallets – As the name suggests these wallets are online. Though they are considered to be secure the fact that they are connected to the internet makes these wallets vulnerable to hackers in comparison to other ether wallets.
- Paper wallets – These are least recommended type as there is a risk of losing the paper with your private keys. Moreover, once you lose your paper wallet it would be extremely difficult or nearly impossible to get hold of your account and tokens.
Mining Ethereum: Ethminer
Like all other decentralized tokens, Ethereum’s ether token also require mining. Mining is a process of computing cryptographic mathematical puzzles and equations to earn a cryptocurrency in reward. One can mine Ether, however, given the popularity of the token there are many into ether mining and it may not be easy. Before installing Ethminer one has to decide what kind of hardware to use, install a client, and do the required testing.
- Hardware selection – CPUs and GPUs are two kinds of hardware that can be used to mine Ethers. The advantage of GPUs over CPUs is that the former can solve the mathematical puzzles quicker. Practically the Ethereum’s ether tokens can be mined only with GPUs.
- Installing a client and connecting to the nodes – Once you have decided your mining hardware it is time to get a mining software and install a client to connect to the other nodes on Ethereum’s Network. The popular software which one can download to mine ethers is “Geth” and after installation, you get connected to the network.
- Testing – It is important to run a mock test to make sure that everything is in place and you’re ready for mining.
- Installing Ethminer – The final step to start with mining ethers is installing the Ethminer. According to your operating system and its versions, you can download the suitable ethminer. Thereafter once you install the Ethminer you are all set to start mining ethers.
Ethereum’s network is continuously expanding. More and more businesses and startups are developing their own tokens on top of Ethereum’s blockchain. Not only mining Ethereum can be a very profitable endeavor but also investing in Ethereum’s ether token can fetch great returns. Moreover participating in popular ICOs is easier if you own Eth as it is widely accepted and often the only currency accepted apart from Bitcoins. No doubt this second generation token is one of the most powerful alternative currency today.