What is Ethereum?

Beau Stoner
A free video tutorial from Beau Stoner
Certified Bitcoin Professional|Engineer|Investor|YouTuber
4.6 instructor rating • 1 course • 9,055 students

Lecture description

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

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Cryptocurrency Investment Fundamentals | Buy, Sell & Store

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01:57:43 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, 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 some excellent resources for increasing your knowledge on investment fundamentals, and where to find cryptocurrency communities
English [Auto] So welcome to the next lexicons, and in this next hour, we're going to check out etherial now starting off on Quoin market cap, dot com. We can see Ethereum is the second most valuable cryptocurrency on the market, which is about 100 billion dollars shy of Bitcoin. Now clicking on Ethereum, let's have a little look at a bit more detail. So one Ethereum or one Etha, as the actual cryptocurrency itself is called, is currently trading for 364 dollars. Now there is a circulating supply of 95 million, Ethar, but as you will see, there is no total supply. So basically what this means is Ethereum platform creates new tokens as the ecosystem develops, whereas as we looked at with Bitcoin before, there was a maximum supply, therefore it can never exceed that supply. But Ethereum is a little bit different, whereas in the code produces Ethereum based on the usage of the network at the time. Now, the price of Ethereum has absolutely shot up this year. In fact, it's gone absolutely through the roof. If you have bought Ethereum at the start of last year, you would have got it for around 90 cents per etha if you had bought it at this time, this would be approximately a 378 times return on your investment in just shy of two years. So let's put this into perspective. If you hadn't bought just 500 dollars of the at the token back in January of last year, that 500 dollars would right now be worth one hundred and eighty five thousand dollars. Pretty mind blowing, isn't it? Welcome to the world of cryptocurrency where anything is possible. So let's learn a little bit more about Ethereum, about the ether token and what it is actually all about. Well, firstly, starting off Ethar, which is the cryptocurrency is not a currency per say like Bitcoin. So what do I mean by this? 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. Ethereum, on the other hand, is a platform for decentralized applications. And we will go into that in just a bit. The crazy thing about cryptocurrency 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 etherial cryptocurrency or Etha, as we discussed earlier, is currently worth three hundred sixty four dollars us again. The cryptocurrency used to be used in an ecosystem, but we can actually use a cryptocurrency to buy things just like Bitcoin. Back over here on living room of Satoshi, if we wanted to pay a bill, we can drop down the menu here and there. We have Ethereum. We also have a bunch of other cryptocurrency which are accepted as well. Now, not the 1000 or so that we can see on coin market cap here, 300. But as you can see, this is the this is the amazing thing about crypto currencies. So moving on to learning a little bit more about Ethereum itself and what it's all about. As I said before, it is a platform for allowing decentralized applications to be built on. So Ethereum is another block chain similar to Bitcoin, but with different parameters and different objectives. So here we have the Bitcoin block chain, which operates on its own. And then we have the theory and block chain theory and block chain works on a similar proof of work system like Bitcoin, where you have miners around the world verifying transactions and getting paid in Ethereum. So when I say decentralized applications, what I mean is the theory and block chain was built to allow other platforms to build their own applications on top of the theorem and to use the Ethereum block chain without these platforms having to create their own block chain. Ethereum also has an amazing new technology built into it called Smart Contracts. Now, smart contracts are just the same as a real contract, except they are executed on the block chain. Now, when we go more to block chains in further lectures, you'll understand more about the technology itself. But basically the block chain, any data stored on the block chain cannot be altered. It is immutable and it is completely impermeable to hacking. The way the block chain works is data stacks on top of itself and it just keeps stacking. And that chain of data is saved is basically saved onto everyone running a node or running a mining operation. So if you wanted to download the etherial blocks and you basically download the entire chain with records of every single transaction that's happened on the network up to that point. So they smart contracts are set up based on what the user wants that contract to do. The data itself or the the execution is stored on the block chain. So when certain parameters are met, that contract is executed and X person and Y person either 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 Ethereum has done, it is built in a crowd funding system where different companies of different groups of people with ideas can use Ethereum or use Ethereum block chain to crowd, fund and create their own cryptocurrency token. So here's a list of all the applications that are currently built on the etherial block chain. The green means live, the orange means a prototype, and the blue means a work in progress. Now, the Ethereum. Lockshin is just like the Bitcoin block chain, which basically means that it's public and we can view any information happening on this block chain 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 might be full blown cryptocurrency organizations that have created their own cryptocurrency with their own business model. So interestingly, he's actually one from YouTube, an automated escrow for YouTube. And their sponsors and the person actually developing this is a clause. So very interesting stuff. Now, if we actually go over to a website called Ethe Escandon IO, which is very similar to that Bitcoin block chain scanning site we were looking at earlier, we can see all of the companies that have used the etherial block chain and smart contract platform to do their own crowdfunding. So basically all of these companies here use the etherial block chain for their own business or their own concept. So a good example is 10 X. Now we talk about 10x a bit because it's a really good platform to use as an example. Now, Tenex is basically a cryptocurrency debit card, but they've used the Ethereum block chain as their platform. Now, Tenex also did some crowdfunding on the etherial block chains. If we come over here to see the final results of their crowdfunding, it's all finished. But basically what they did is they used a smart contract system built into these herion block chain to do that crowdfunding. So here we can see the Tenex. Patoka now coming back to coin market cap where she search for Tenex. We can see here the Tenex tokens at the moment with Doleac dollar 88. We can see the circulating supply, we can see the total supply. So this is a whole different cryptocurrency. It's a unique cryptocurrency, but it is a cryptocurrency that was created on the theory and block chain. So any token that is created, only theory and block chain using that smart contract platform is called in AC 20 compliant token. So all of these different cryptocurrency platforms that we can see here that have their own token are classed as E20 compliant tokens that basically. What's that mean? What that means and we'll go into this further down the track, is that any Iasi 20 compliant token can be stored in an inferior wallet. So even though that Ethereum will it might be designed for Ethereum, we can still store any Heisei 20 Tolkan on that wallet because that token is actually derived from the Assyrian block chain. Now, here is an example of a current crowdfunding 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 ICAO or an initial coin offering where if people donate cryptocurrency, they receive the 90 day market token in exchange. So we'll see. He is up on the left. You'll see one. Ethereum equals 750 market tokens. So what that means is that the market team has set up a smart contract on the Ethereum block chain to automatically exchange 750 of their native Tolkan for one Ethereum token. So if I wanted to participate in the market crowdfunding, I could contribute. And what happens is if they approve me to contribute, they give me a special Ethereum address. I then send my theorem to that address and then automatically at a certain date they will send me back the tokens depending on how many Ethereum I gave them. So will go into this more in later detail. But the CEOs are a phenomenon at the moment. They growing in popularity every day and they give anyone in the world with access to the Internet an opportunity to invest into a company at is very, very early stages cryptocurrency. And these tokens are almost taking the place of traditional shares because they have all these extra features, they have all these extra things, and anyone in the world can basically participate, which is why it's so incredible. So one of the reasons why Ethereum is so big and so strong is it has something called the Enterprise Ethereum Alliance. Now, the Enterprise Ethereum Alliance consists of tons and tons of different companies which are working together to use the etherial platform and the smart contracts to try and improve their own business models. So going through this list of companies, you'll see some very big names. So we've got BP, we've got Credit Suisse, we've got Deloitte, we've got Intel, IAG, MasterCard, Microsoft, the National Bank of Canada. The list just goes on and on. These are huge companies working together, using that Ethereum block chain, using that smart contract system to try and improve their own businesses, move away from centralized databases and use that decentralized block, trying to create efficiencies to create security and to exploit that blogsite as much as they can in overall improving their businesses. Now, Cerium also has its own conference, which is called the Development Conference or the dev com. That happened once or twice a year and absolutely massive. And they attract a lot of people. So I hope that is explained. Ethereum, to you and I hope you can understand a bit more about it now and again. We're going to go more into the block chain technology a little bit later on. But the most important thing to take away from this is that bitcoin and cerium are two very, very, very different things. Yes, they both use block chain technology, but they both have their own block chains. And Ethereum is that decentralized platform that allows. Other companies to build their own tokens, to do crowdfunding, to create smart contracts and to do anything else using the Ethereum block chain, whereas you have Bitcoin is just a currency. OK, so with a theory out of the way, let's move on to Bitcoin cash.