Anthony Heston - Ethereum: How to Safely Create Stable and Long-Term Passive Income by Investing in Ethereum

Ethereum

How to Safely Create Stable and Long-Term Passive Income by Investing in Ethereum

Introduction

O THER THAN SETTING records, Ether is a valuable cryptocurrency with a lot of potential in the next years with an industrial and intrinsic value.

Among the chapters that you will find in this book are:

An Introduction to Ether & Ethereum

Concerns about Investing in Ethereum

Understanding the Ethereum Architecture

Ethereums Entrepreneurial Ecosystem

Furthermore, this book will fill you in on all the essentials about Ethereum. If youre hesitant about investing the Ethereum platform, the information inside will hopefully help clarify matters for you. And youre also be able to discover and understand how to SAFELY invest in Ethereum in a step-by-step manner.

If youre bothered by concerns that its too late to invest in Ether and the Ethereum platform, know that its not.

Its not too late, and in fact, its rather early to invest in Ether since it hasnt even come near mainstream adoption unlike other cryptocurrencies (e.g. Bitcoin and Litecoin). JP Morgan, Microsoft, Samsung, and Intel are just but a few Fortune 500 companies that are in the process of exploring Ethereum. And since it hasnt reached its maximum growth capacity yet, it is continuing to grow exponentially.

According to analysts who calculated its value (using astronomical analyst systems and calculus in a complex method called Gann Square ), Ether was seen with a 5000% increase just within a year. And it still has plenty of potential to grow even further.

And thus, this is one of the best points where it would be ideal take advantage of Ethers current price. Based on Ethers transaction growth chart, its price will keep on increasing. So, allotting money on Ether and the Ethereum platform, then committing to hold the position for several years, is likely a financially rewarding move.

Chapter 1 - Ethereum: The Future of Digital Payments

I N 2013, A MAN NAMED Vitalik Buterin was looking at a lineup of science fiction elements. Then, a particular word seemed to sound more interesting than the rest. It captured his interest since it contains another word (Ether) that he fancies.

This word was Ethereum, and this man became the founder of a blockchain-based platform, as well as a high-potential cryptocurrency.

What Is Ethereum?

Ethereum, based on blockchain technology, is an open platform that grants the authority to build (then deploy) over a Dapp (or a decentralized application) to developers. With a hash rate value (at its peak) of 3 TeraHash (or 3,010 GH per second), it has a large infrastructure. Its developers, led by Vitalik Buterin with assistance from Charles Hoskinson, Anthony Di Lorio, and Mihai Alisie, designed it for high-end GPUs (or Graphics Processing Units).

And since it runs on blockchain networks, it also comes with the advantages of decentralized networks such as:

0% downtime, or the inability of apps to be switched off or go down

Security, or the protection against fraudulent activities

Immutability, or the inability of a 3rd party to modify data

Initially, the Ethereum platforms distribution was done via a public blockchain networkin an ICO (or Initial Coin Offering) form. During which, about 35,000 Bitcoins were exchanged for about 60,000,000. This allowed almost USD $14,000,000 to be raised, which, consequently garnered 14% of supply.

Furthermore, Ethereums distribution continues to be done via a public blockchain network. And this public blockchain network works alongside the distribution of the Ethereum platforms cryptocurrency tokens called Ether (with code ETH).

User Accounts

In the Ethereum platform, a blockchain features blocks of various sizes. Alongside, there are various types of user accounts that come with 20-byte addresses.

The two types of accounts are as follows:

#1: External accounts accounts with private keys

#2: Contract accounts accounts with contract codes

The primary difference between the two types of accounts is in the authority that controls them. For external accounts, the control is assigned to human users, which consequently pass control to external accounts.

On the other hand, contract accounts are not controlled by human users. Rather, these accounts are controlled by internal codes. While they can use contract accounts, humans would need external accounts to activate contract accounts.

Furthermore, contract accounts are allowed to perform an operation if instructed by external accounts. So, unless prompted by external accounts, these contract accounts cannot perform native operations (e.g. API calls and Random Number Generation).

Smart Contracts

The Ethereum platforms notable feature is the use of scripting functionality called Smart Contracts . This enables users to create tokens that are compatible with exchanges and wallets under a standard coin API. More importantly, this means that it is able to facilitate the exchange of valuables (e.g. money, stocks, and property).

And thus, with Smart Contracts, you can expect a self-operating program that executes orders automatically once conditions are met. Since their operations are done via a blockchain network, they execute according to the original programming without the possibility of downtime, censorship, and 3rd party interference.

Heres an overview of a Smart Contracts operations:

First, a code (based on an option contact) is written into the blockchain network. Despite the contact serving as the public ledger, this code is written with the protection of anonymity of the involved parties.

Then, a Smart Contract is executed once a trigger (e.g. strike prices and expiration periods) is hit.

Lastly, since a Smart Contract was run, regulators begin inspecting market activity by using the blockchain technology. However, throughout the inspection, regulators are obliged to ensure privacy (of the involved parties).