Ethereum and what it's all about

Ethereum ("Ether" or "ETH") has grown rapidly during the last months and besides Bitcoin is probably the best known term in the Blockchain universe. But what exactly is Ethereum? And why is it actually no Bitcoin competetor?
ETH created by Vitalik Buterin started running in 2013and got finally improved in 2015. Just half a year has lasted it to come on a market capitalization of half a billion US dollars – a sum which already doubled two weeks later. Market capitalization in January 2018: 70.66 billion euros.
The development of Ethereum lies in the hands of the "Ethereum Charity Foundation" with its headquarter in Switzerland.
The second important organization is the "Enterprise Ethereum Alliance". This alliance wants to create industrial standards on the basis of the „only smart contracts supporting Blockchain, which works in the real world“, and to develop standard-software solutions for the whole market. These should be usable as an open source software.
This alliance should not to be underestimated – just take a look at the foundation members: Accenture, Credit Suisse, Intel, J. P. Morgan, Microsoft, Santander, ING-DiBa to mention only the best known names. Ethereum already runs productively, gets wide support from the economy and can refer to a well-arranged market capitalization.
The network consist like Bitcoin of single participants ("Nodes") who run an Ethereum client. Every node contains the whole Blockchain which is from approx six to eleven gigabytes. The Windows client specifically uses at least 20 gigabytes.
The whole functionality of Ethereum is simple and also the rules for leading the Blockchain and the administration of the network. The most important point of the ETH Blockchain is probably the consensus algorithm. Originally Ethereum used the (known by Bitcoin) "Proof of Work" (PoW) protocoll which binds the Mining to arithmetic power which is invested to solve cryptographically tasks.
In 2017 an important attempt consisted in changing the system into Proof of Steak (PoS). The major difference is that any invested arithmetic achievement is not determined by the Miners generation of blocks. Instead, it’s fixed by an algorithm telling which miner is next in the row. Miner can become who sticks to the rules of the Blockchain – and for that deposits Ether as a security. In this way the power to generate new blocks depends on the Ether credit instead of hardware.

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