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What Is EtherDesk?
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EtherDesk is a multi news publication platform covering all the latest and upcoming technological breakthroughs in the digital world and are dedicated at helping the community to have a better and clear outlook of the Trending Blockchain Technology. We all at EtherDesk, are employed so as to help connecting the global community to the Actual Blockchain world.
Who Are We?
We at EtherDesk are a team of people working together as dedicated editors, crypto experts, market entrepreneurs and taxation specialists all having a minimum experience of 6 Year’s from the different field of cryptocurrency. We are all dedicated to work together, as we believe in the ‘Future of the Blockchain Technology’ yet to arrive.
What is Blockchain Technology?
Blockchain technology was invented by Satoshi Nakamoto back in year 2008 for solving the double spending problem associated with the regular currencies without the need of intermediary trusted authority. In simple terms it can be understood as the latest update for the distributed ledger technology named ‘Cryptography’. However the main difference between the two are the endless possibilities of employing Blockchain technology for storing data securely without any chances of data alterations either in past or future.
What is Bitcoin?
Bitcoin is a decentralized electronic currency working peer to peer between users, employing the powerful blockchain technology without the involvement of any intermediary authorities. These transactions are verified by network nodes using cryptography and then further recorded in a free source distributed ledger called the Blockchain.
How Are Bitcoin Created?
The Total supply of Bitcoins are limited to 21 Millions. Bitcoins are created each time a user discovers a new block. The rate of this block generation is adjusted every 2016 blocks to aim for a constant two week adjustment period (equivalent to 6 per hour.) The number of bitcoins generated per block is set to decrease geometrically, with a 50% reduction every 210,000 blocks, or approximately four years.
What is Ethereum?
Ethereum was initially described in white paper by Vitalik Buterin in late 2013 with the goal of building decentralized application using blockchain technology. It is based on an open source distributed ledger platform available publicaly free for the users and also provides with the functionality of featuring and implementing new smart contacts, applications that run exactly as programmed eliminating possibilities of downtime, fraud and third party interference. These apps run on a custom built Ethereum blockchain, a powerful infrastructure globally.
What is Ether?
Ether is also called as “crypto-fuel” and is commonly referred as Ethereum which is a digital currency also called cryptocurrency whose blockchain is based on Ethereum Platform but if speaking technically, Ether is a necessary element – a fuel – for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations.
How are ethers created?
The total supply of ether and its rate of redistribution was decided by the donations gathered on the 2014 presale. Some Stats are as under:
- 60 million ether created to contributors of the presale.
- Million (20% of the above) were created to the development fund, most of it going to early contributors and developers and the remaining to the Ethereum Foundation.
- Ethers are created every block (roughly 15 seconds) to the miner of the block.
- ethers are sometimes sent to another miner if they were also able to find a solution but his block wasn’t included (called uncle/aunt reward).
*Note that after the Byzantium update is implemented, the mining and uncle reward is reduced to 3 ethers and 0.625-2.625 ethers, respectively.
Is the ether supply infinite?
No. According to the terms agreed by all parties on the 2014 presale, issuance of ether is capped at 18 million ether per year (this number equals 25% of the initial supply). This means that while the absolute issuance is fixed, the relative inflation is decreased every year. In theory, if this issuance was kept indefinitely then at some point the rate of new tokens created every year would reach the average amount lost yearly (by misuse, accidental key lost, the death of holders etc) and there would reach an equilibrium.
But the rate is not expected to be kept: sometime in 2018-2019 Ethereum will be switched from Proof of Work to a new consensus algorithm under development, called Casper that is expected to be more efficient and require less mining subsidy. The exact method of issuance and which function it will serve is an area of active research, but what can be guaranteed now is that (1) the current maximum is considered a ceiling and the new issuance under casper will not exceed it (and is expected to be much less) and (2) whatever method is ultimately picked to issue, it will be a decentralized smart contract that will not give preferential treatment to any particular group of people and whose purpose is to benefit the overall health and security of the network.
Who needs ether?
Developers who intend to build apps, access and interact with smart contracts on the Ethereum blockchain need Ether as fee’s.
How do I mine ether?
The Ethereum network is kept running by computers all over the world. In order to reward the computational costs of both processing the contracts and securing the network, there is a reward that is given to the computer that was able to create the latest block on the chain. Every 15 seconds, on average, a new block is added to the blockchain with the latest transactions processed by the network and the computer that generated this block will be awarded 3 ether. Due to the nature of the algorithm for block generation, this process (generating a proof of work) is guaranteed to be random and rewards are given in proportion to the computational power of each machine.
This process is usually called mining in the crypto language.
Confusion between Ethereum, Bitcoin and BlockChain Technology?
There is a big confusion between Ethereum and Bitcoin. Both Bitcoin and Ethereum are based on Blockchain technology. Ethereum could have not been possible without bitcoins. As bitcoin was the first digital currency to employ blockchain technology for functioning.
There are many ways in which you can use Bitcoins within the Ethereum ecosystem:
Convert Bitcoin To Ethereum : Multiple third-party companies are working to make the exchanging of ether and bitcoins as easy and seamless as possible. If so desired one could trade bitcoins for ether with the purpose of executing contracts and trade it back immediately in order to keep their value pegged and secured by the bitcoin network. The latest version of the wallet includes an automatic conversion between ether and bitcoin.
Create Smart Ethereum Smart Contacts : Ethereum is a great tool for creating complex trading between multiple parties. If you have a source for the price of Bitcoin that all parties trust, then it’s possible to create an Ethereum based currency whose value is pegged to the market value of Bitcoin. This means that you could trade bitcoins to a token that is guaranteed to always trade back to the same amount of bitcoins while still being fully compatible with other ethereum contracts.
Use A Bitcoin Feed To Convert A 2-Way Peg : the bitcoin relay is a piece of code that allows you to sidechain a bitcoin into ethereum. This means that you can use Bitcoin’s native limited scripting capability to lock a bitcoin into a contract that is directly connected to an ethereum contract, which can then issue an ethereum based token that is guaranteed to be backed by bitcoin. The relay is under development and as implementations are tested and proved to be secure, we will list them here.
More Questions – Here Is What You Can Do?
We have tried to cover almost everything associated at first place with the BlockChain Technology including the simple conflicting questions. Rather than this, if there is something you would like to enquire or know more, We are always here for your help. Feel free to mail us your concerns at [email protected].