Ethereum Analysis
Written by CryptoDigger, 10/18/17
This is my general analysis on the Ethereum Cryptocurrency. We will be talking about two main subjects: technical overview and market analysis on the coin performance.
Specifications:
- Date of launch: 30th of July 2015
- Circulating Supply: 95,100,161 ETH
- Algo: Ethash
- Consensus Mechanism: POW ( Future POS )
- Mining Pools: Nanopool ; DwarfPool ; EthPool
- Mining Software: Claymore ; Genoil
- Market Cap: $29bn
- Created by: Vitalik Buterin
“ Our goal is to provide a platform for decentralized applications — an android of the cryptocurrency world, where all efforts can share a common set of API’s, trustless interactions and no compromises. “
What is Ethereum?
Ethereum is an open source platform where developers can build decentralized applications (Dapps) where users don’t need to trust any third party with their confidential information or even the control of their assets. It is powered by blockchain technology, and it has a lot more aplications then its anscestor Bitcoin. Beeing the pioneers of “smart contracts”, wich are basic automated applications that execute the same commands everytime it receives a transaction, Ethereum aims to be a more complete and scalable blockchain.
Also you can check here this explanation from the former Ethereum CCO, Stephan Tual, on what is Ethereum.
Technical Overview
GitHub - This is for sure one of the most active github’s I have ever seen, with constant updates (usualy on a daily basis) and a huge ammount of software development done.
Supported Platforms- Linux, Windows, Mac, Webwallet, Android, iOS
Whitepaper - If you are a more advanced “connoisseur“ of software development I recomend you to have a complete read on their whitepaper.
Market Analysis
Current price per coin: 303$
Final Thoughts
The complete launch process of Ethereum was divided into 4 stages. This was done to make sure that various phases got their own developmental time and that every stage was developed as efficiently and optimally as possible.
The 4 stages are as follows:
- Frontier: This was what everyone got when Ethereum was first launched
- Homestead: The second stage of Ethereum development
- Metropolis: Byzantium Release at 17/10/2017
- Serenity: The final stage
Metropolis is the 3rd stage in the 4-stage process, and there are a lot of interesting features that are coming when it gets implemented. Here are some of the main ones which are going to have plenty of repercussions.
- Zk-Snarks
- Proof of Stake early implementation
Proof Of Stake Early Implementation
So what is the difference between proof of work and proof of stake?
- Proof of work: This is the protocol that most cryptocurrencies like Ethereum and Bitcoin have been following so far. This means that miners “mine” cryptocurrencies by solving crypto-puzzles using dedicated hardware.
- Proof of stake: This protocol will make the entire mining process virtual. In this system, we have validators instead of miners. The way it works is that as a validator, you will first have to lock up some of your ether as stake. After doing that you will then start validating blocks which basically means that if you see any blocks that you think can be appended to the blockchain, you can validate it by placing a bet on it. When and if, the block gets appended, you will get a reward proportional to the stake you have invested. If, however, you bet on the wrong or the malicious block, the stake that you have invested will be taken away from you.
To implement “proof of stake” Ethereum is going to use the Casper consensus algorithm. In the beginning, it is going to be a hybrid style system where the majority of the transactions will still be done proof of work style while every 100th transaction is going to be proof of stake. What this will do is that it will provide a real-world test for proof of stake on Ethereum’s platform.
Byzantium and Constantinople
The Metropolis update will be divided in two phases:
- Byzantium hard fork beeing implemented on the 17th of October of 2017
*Constantinople doesn’t have a release date yet but its expected for late 2018
With the whole cryptocurrency ecosystem growing, I’m sure more dapps and ico’s will use Ethereum blockchain has a back bone to their projects. The team behind the project, lead by Vitalik, is also one of the oldest and most respected in the crypto space. With partners like Microsoft, Intel, J.P. Morgan, Santander, BP, Accenture and many more, its easy to predict some good potencial growth for Ethereum during the next years. Here in BarkVille we are already digging up new holes to stash more coins :)