What is Ethereum?

Beau Stoner
A free video tutorial from Beau Stoner
Certified Bitcoin Professional|Engineer|Investor|YouTuber
4.7 instructor rating • 2 courses • 6,855 students

Lecture description

In this lecture, students will learn all about Ethereum, and the cryptocurrency Ether that powers it.

Learn more from the full course

Cryptocurrency Investment Fundamentals | Buy, Sell & Store

This course teaches the key fundamentals in buying and investing in cryptocurrencies, focusing on the Australian market

04:10:05 of on-demand video • Updated December 2018

  • Learn all about the fundamentals of Cryptocurrencies, including the foundational Blockchain technology behind it
  • Learn about Bitcoin, Ethereum, Bitcoin Cash and Ripple
  • Learn about Australian cryptocurrency exchanges, how to create an account and know your customer/anti money laundering laws
  • Learn how to buy, sell, and store cryptocurrencies including using digital wallets
  • Learn about the risks involved with cryptocurrency investment, including scams, hacks, phishing and pump and dumps
  • Learn about how to identify cryptocurrencies to invest in and how to employ proper investment strategies
  • Learn about Australian specific cryptocurrency tax and superannuanation
  • Learn some excellent resources for increasing your knowledge on investment fundamentals, and where to find cryptocurrency communities
English [Auto] So welcome to the next lecture go. And in this lecture we're going to check out ethereal. You're starting off on coin market cap com. We can see a theory is the second most valuable cryptocurrency on the market which is about $100 million shy of Bitcoin. Now clicking on a theorem. Let's have a little look at a bit more data. So one theory or one eighth as the actual cryptocurrency itself is called is currently trading for three hundred and sixty four dollars. Now there is a circulating supply of ninety five million aither. But as you will see there is no total supply. So basically what this means is the theory in platform creates new tokens as the ecosystem develops whereas as we looked at with Bitcoin before there was a maximum supply and therefore we can never say that's a plausible theory is a little bit different. Whereas in the code produces a theory based on the usage of the network at the time. Now the problem with Europe has absolutely shot up this year. In fact it's gone absolutely through the roof. If you have bought theory at the start of last year you would go for around 90 cents per acre. Now if you had bought it at this time this would be approximately a three hundred and seventy times return on your investment in just shy of two years. So let's put this into perspective. If you bought just $500 of the eighth or Teigen back in January of last year that five hundred dollars would right now be worth one hundred eighty five thousand dollars pretty mind blowing isn't it. Welcome to the world of crypto currencies where anything is possible. So let's learn a little bit more about the theory that the 8th the token and what it is actually all about. Well firstly starting off 8th which is the cryptocurrency is not a currency per se like Bitcoin. So what do I mean by these. Well what I mean is Bitcoins primary purpose was to be designed to be used as a digital or a cryptographic digital form of payment. Ethereal on the other hand is a platform for de-centralized applications. And we will go into that in just a bit. The crazy thing about crypto currencies is just because the coin itself isn't designed to be used as a form of payment does not mean it can't be used as a form of payment. So the theory is cryptocurrency or aither as we discussed earlier is currently with $364 us again the cryptocurrency used to be used in an ecosystem but we can actually use it cryptocurrency to boy things just like Bitcoin. Back over here on living room of Tashi if we wanted to pay a bill we can drop it in the. And then we have ethereal. We also have a bunch of other currencies which are accepted as well. That's not the 1000 or so that we can see on coin market cap 13:00. But as you can see this is the math. This is the amazing thing about crypto currencies. So moving on to learn a little bit more about the theorem itself and what it's all about. As I said before it is a platform for allowing de-centralized applications to be built home. So theorem is another block China similar to Bitcoin but with different parameters and different objectives. So here we have the Bitcoin block which operates on its own and then we have the therian blocked and blocked. Works on a similar proof of work system. What Bitcoin we have moins around the world verifying transactions and getting paid in Ethiopia. So when I say de-centralized applications what I mean is the therian block chain was built to Alea other platforms to build their own applications on top of the theorem and to use the therian block chain. Without these platforms having to create their own block. Yeah therian also has an amazing new technology built into it called Smart contracts smart contracts are just the same as a real contract except they are executed on the block right now. When we get them on the block chains in further lectures. Understand more about the technology itself. Basically the block chain any data stored on the block chain cannot be altered. It is immutable and it is completely impermeable to hacking. Why the blockade works is Donna stacked on top of it so. And it just keeps stacking and that chain of data is saved is basically saved onto everyone running a node or running a morning operation. So if you want to demo the thing in blocks and you basically download the entire chain with records of every single transaction thats happened on the network up to that point. So the smart contracts are set up by the user. Once that contract to do that self or the the execution is stored on the block time. So when certain parameters that contract is executed and X person and one person other receives some crypto currencies or some other form of data verification. Now what these smart contracts are hugely used for at this point in time is crowdfunding in the cryptocurrency space. So what theorem has done it is building a crowdfunding system where different companies different groups of people with ideas can use a theory or use the therian block time to crowdfund and create their own cryptocurrency Toka. So here's a list of all the applications that are currently built on the theory of block blogsite the grain mains live the orange mains a prototype and the blue means a work in progress. Now these block Celene is just like the Bitcoin block site which basically means that it's public and we can view any information happening on this block at any point in time. So all these applications are basically platforms some of them might be small platforms some of them might be crowdfunding some of them won't be full blown cryptocurrency organizations that have created the unencrypted currency with their own business model. So interestingly he's actually one from YouTube an automated S-curve for YouTube and his sponsors. And the person actually developing this is all reclose. So very interesting stuff. Now if we actually go over to a website called Ethans scandal which is very similar to that Bitcoin blocked scanning saw we were looking at earlier we can see all of the companies that have used the theory of block time and smart contract platform to do their own Crowdfunding. So basically all of these companies he used the therian block time for their own business their own concept. So good example is 10 x. Now we talk about 10x a bit because its a really good platform to use as an example. Tenex is basically a cryptocurrency debit card. But they've used the Athenian block chain as their platform. Now 10x also did some crowdfunding on the theory and signs if we can see the formal results of the crowdfunding it's all finished. But basically what they did is they used a smart contract system built into the theory of block time to do that crowdfund. So here we can see the 10x pite token they're coming back to market cap which the search for 10x we can see the 10x Tonans at the moment with Dullea ID I would say that Zirkle ending supply we can say the toes point. So this is a whole different cryptocurrency Its a unique cryptocurrency cryptocurrency that was created on the therian block time. So any time you can that is created on the theory and blogsite using that smart contract platform is called in APRC 20 compliant tocome. So all of these different cryptocurrency platforms that we can see here that have their own tokin our class as a 20 compliant tokens that basically was that. What that means that will going to this further down the track. Is it any on say 20 compliant token can be stored in an ethereal wallets even though that a theorem will be designed for therian we can still store any say 20 Teigen on that wallet because that token is actually derived from the theory. BLOCK time. Here is an example of a current crowd funding platform. Now I'm not endorsing the market in any way or merely showing you this as an example that the market is conducting something called an Aussie or an initial coin offering if people donate cryptocurrency they receive the 90 day market token in exchange. So we'll see he is up on the left you say. One theory equals 750 day market tokens. So what that means is the day market team has set up a smart contract on the therian block time to automatically exchange 750 of their native Teigen for one therian token. So if they were to participate in the day market crowdfunding I could contribute. And what happens is if they approve me to contribute they give me a special ethereal address or then-Sen. my theory to that address and then automatically at a certain date they will send me back the tokens depending on how many a theory am I gave them. So go into this more in light of day 12 with the part of a phenomenon at the moment they are growing in popularity every day and they give anyone in the world with access to the Internet and opportunities to invest into a company that is very very early stages. Crypto currencies and these tokens are almost taking the place of tradition which is because they have all these extra features that all these things and anyone in the world can basically participate which is why it's so incredible. So one of the reasons why theory is so big and so strong is it has something called the enterprise theorem alliance. Now the lines consist of tons and tons of different companies which are working together to use the theory and platform and those smart contracts to improve their own business models. So going through this list of companies you'll see some very big names. So we've got backpay we've got credit Suisse. We've got Deloitte. We've got Intel IAG MasterCard Mochis off the national bank of Canada. The list goes on and on. These are huge companies working to get not using that theory. BLOCK China used usenet smart contract system to improve the island businesses move away from centralized databases and use that de-centralized block trying to create efficiencies to create security and to exploit that Lochhead as much as they can in overall improving their businesses. The theory also has its own conference which is called the Development Conference or the day of COM and or twice see an absolutely massive and they attract a lot of people. So that is explained a theorem to you and I hope you can understand a bit more about it now and again we're going to get more into the blocks time technology a little bit later on. But the most important thing to take away from this is a big point and Therien two very very very different things. Yes they both use block time technology but they both have their own blocks. And the theory is that de-centralized platform whereas other companies to build their own tokens to do crowdfunding to create smart contracts and to do anything else using that theory of blocks where you have Bitcoin is just a currency. OK. So the theory out of the way. Let's move on to the coin cash.