John McAfee, the founder of McAfee anti-virus program and this year’s presidential candidate running with the Libertarian Party has criticized Bitcoin for being “too complex for the Average Individual.” and advised people to be cautious when using bitcoin.“Here’s the problem with Bitcoin; it’s just like any emerging technology.The technology here isn’t Bitcoin, it’s digital currency.And with any emerging technology, the first few attempts are gonna have some problems.Now, you cannot deny that hundreds of millions of dollars have disappeared for various reasons with Bitcoin users,” Mcafee.Despite his asceticism towards bitcoin as an independent currency, McAfee believes that digitalized forms of money will replace current fiat-based financial systems.However, he thinks that bitcoin will not be one of them.“ It is number one, too complex for the average individual.The blockchain mining of coins is becoming increasingly expensive… We can talk forever about the intricate technical problems or lack of such.

But from my personal opinion, I do not think the electronic currency will be Bitcoin.I’m close friends with Ron Pierce, he’s one of the biggest enthusiasts of Bitcoin.Honestly, in private conversations with Ron, we get the same thing.There will be an electronic currency, that I promise you.And if it’s Bitcoin, great.I just don’t think it will be.” One main concept of Bitcoin which the general population fail to embrace is its decentralized and transparent nature.The Bitcoin blockchain network, a peer to peer network is secured and maintained by millions of miners around the world.Which means, the network does not require the existence of central authorities or third party applications and mediators to revoke, restrict and alter transactions or activities on the network.Individuals like McAfee, with a superficial understanding of cryptocurrencies like Bitcoin fail to understand how a cryptographic algorithms operate and are utilized to provide a certain level of security which fiat-based or centralized application simply cannot.

Because traditional financial instruments and applications offer administrative abilities to authorities and capabilities to alter and change data on the network, it inevitably fall victim to various hacking attacks and data breaches.bitcoin bikersDespite the limitations of such financial technologies, McAfee still argues that there are many unresolved technological issues with Bitcoin.bitcoin out of sync“There are tremendous technology problems with bitcoin,” McAfee There are tremendous infrastructure problems.ethereum statisticsThe number of people who lost money by wallets that have simply disappeared, by trusting companies is legion.bitcoin inventor photo

Without considering the technological limitations of these wallet platforms and their security holes, McAfee instead directly criticized the Bitcoin network for the loss and theft of bitcoins which occurred in independent bitcoin platforms like Mt.bitcoin kurs appOver the past few years, people have lost millions of dollars in exchanges and wallets which had faulty systems and poor security protocols.bitcoin currency arbitrageGox had a centralized server where the exchange kept bitcoins themselves, which today is known to be an extremely vulnerable bitcoin operation.bitcoin on imacWhile politicians and tech gurus like McAfee still believe bitcoin is not viable as a currency, the virtual money ended 2015 as the best performing currency of the year, and was the only currency / asset which wasn’t affected by the rising interest rates of the United States.bitcoin piscina

Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality, which facilitates online contractual agreements.[2]litecoin localIt provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes.Ethereum also provides a cryptocurrency token called "ether", which can be transferred between accounts and used to compensate participant nodes for computations performed.“Gas”, an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.[2][3]Ethereum was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer.Development was funded by an online crowdsale during July–August 2014.[4]The system went live on 30 July 2015, with 11.9 million coins "premined" for the crowdsale.[5]

This accounts for approximately 13 percent of the total circulating supply.[]In 2016 Ethereum was forked into two blockchains, as a result of the collapse of The DAO project.The two chains have different numbers of users, and the minority fork was renamed to Ethereum Classic.[6]The majority fork has retained the name Ethereum (the subject of this article).[7][8][9]Contents 1 2 3 4 5 Ethereum was initially described in a white paper by Vitalik Buterin,[10] a programmer involved with Bitcoin, in late 2013 with a goal of building decentralized applications.[11][12]Buterin had argued that Bitcoin needed a scripting language for application development.Failing to gain agreement, he proposed development of a new platform with a more general scripting language.[13]:88The original four members of the Ethereum team were Vitalik Buterin, Mihai Alisie, Anthony Di Iorio, and Charles Hoskinson.[14]Formal development of the Ethereum software project began in early 2014 through a Swiss company, Ethereum Switzerland GmbH (EthSuisse).[15][16]

Subsequently, a Swiss non-profit foundation, the Ethereum Foundation (Stiftung Ethereum) was set up as well.Development was funded by an online public crowdsale during July–August 2014, with the participants buying the Ethereum value token (ether) with another digital currency, bitcoin.[4]While there was early praise for the technical innovations of Ethereum, questions were also raised about its security and scalability.[11]Several prototypes of the Ethereum platform were developed by the Foundation, as part of their Proof-of-Concept series, prior to the official launch of the Frontier network.The last of these prototypes culminated in a public beta pre-release known as "Olympic".[17][18]The Olympic network provided users with a bug bounty of 25,000 ether for stress testing the limits of the Ethereum blockchain.After Olympic, the Foundation announced the beginning of the Frontier network to mark the tentative experimental release of the Ethereum platform in July of 2015.[19][20]Since the initial launch, Ethereum has undergone several planned protocol upgrades called milestones, which are important changes affecting the underlying functionality and/or incentive structures of the platform.[21][22]

The current milestone is named "Homestead" and is considered stable.[23][24]It includes improvements to transaction processing, gas pricing, and security.[25][23][26]There are at least two other protocol upgrades planned in the future, i.e.Metropolis is intended to reduce the complexity of the EVM and provide more flexibility for smart contract developers.[22]The move to Serenity is still uncertain, but should include a fundamental change to Ethereum's consensus algorithm to enable a basic transition from hardware mining (proof-of-work) to virtual mining (proof-of-stake).[22][27]Improvements to scalability, specifically sharding, are also said to be a key objective on the development roadmap.[28][29]In 2016 a decentralized autonomous organization called The DAO, a set of smart contracts developed on the platform, raised a record US$150 million in a crowdsale to fund the project.[31]The DAO was subjected to an exploit in June where US$50 million in ether were claimed by an anonymous entity.[32][33]

The event sparked a debate in the crypto-community about whether Ethereum should perform a contentious "hard fork" to reappropriate the stolen funds.[34]As a result of the dispute, the network split in two.A minority who rejected the protocol update adopted the pre-fork version of the Ethereum blockchain and called it Ethereum Classic,[6] while the majority who supported have moved forward with the official post-fork Ethereum blockchain.[7][8][9]The hard fork created a rivalry between the two networks.[35][36][37]The people who continued with Ethereum Classic advocate for blockchain immutability, code is law, and essentially rebellion[38] against the pro-fork side (Ethereum) which largely argued for extra-protocol intentionality, decentralized decision-making, and conflict resolution.[39][40][41]Various critics of Ethereum Classic have denounced it as a scam[42][43] and a potential theft of intellectual property,[44] with similar controversial remarks being made on behalf of the opposing camp.

Ethereum Classic has retained some users of Ethereum and has also attracted others from the wider crypto-community who reject contentious forks on ideological grounds.The project, however, is not officially supported by the Ethereum Foundation,[45] nor is it generally endorsed by the consortium of developers, business partners, miners, and users of the Ethereum ecosystem.After the initial hard fork, Ethereum subsequently forked two times in the fourth quarter of 2016 to deal with other attacks.[46]By the end of November 2016, Ethereum had increased its DDoS protection, de-bloated the blockchain, and thwarted further spam attacks by hackers.[26]The value token of the Ethereum blockchain is called ether.It is listed under the diminutive ETH and traded on cryptocurrency exchanges.It is also used to pay for transaction fees and computational services on the Ethereum network.[47]Tokens can be volatile per circumstances, such as ether's plunge from $21.50 to $8 when The DAO was hacked on 17 June 2016.[33]

The Ethereum Virtual Machine (EVM)[48][49] is the runtime environment for smart contracts in Ethereum.The formal definition of the EVM is specified in the Ethereum Yellow Paper by Gavin Wood.[50][51]It is sandboxed and also completely isolated from the network, filesystem or other processes of the host computer system.Every Ethereum node in the network runs an EVM implementation and executes the same instructions.Ethereum Virtual Machines have been implemented in C++, Go, Haskell, Java, Python, Ruby, Rust, and WebAssembly (currently under development).[52][53][54]Smart contracts are deterministic exchange mechanisms controlled by digital means that can carry out the direct transaction of value between untrusted agents.[55]They can be used to facilitate, verify, and enforce the negotiation or performance of economically-laden procedural instructions and potentially circumvent censorship, collusion, and counter-party risk.In Ethereum, smart contracts are treated as autonomous scripts or stateful decentralized applications that are stored in the Ethereum blockchain for later execution by the EVM.

Instructions embedded in Ethereum contracts are paid for in ether (or more technically "gas") and can be implemented in a variety of Turing complete scripting languages.[2][56]As the contracts can be public, it opens up the possibility to prove functionality, e.g.self-contained provably fair casinos.[57]One issue related to using smart contracts on a public blockchain is that bugs, including security holes, are visible to all but cannot be fixed quickly.[58]One example of this is the 17 June 2016 attack on The DAO, which could not be quickly stopped or reversed.[32]There is ongoing research on how to use formal verification to express and prove non-trivial properties.A Microsoft Research report noted that writing solid smart contracts can be extremely difficult in practice, using The DAO hack to illustrate this problem.The report discussed tools that Microsoft had developed for verifying contracts, and noted that a large-scale analysis of published contracts is likely to uncover widespread vulnerabilities.

The report also stated that it is possible to verify the equivalence of a Solidity program and the EVM code.[59]Smart contracts are high-level programming abstractions that are compiled down to EVM bytecode and deployed to the Ethereum blockchain for execution.They can be written in Solidity (a language library with similarities to C and JavaScript), Serpent (similar to Python), LLL (a low-level Lisp-like language), and Mutan (Go-based, but deprecated).[60]There is also a research-oriented language under development called Viper (a strongly-typed Python-derived decidable language).[61]In Ethereum all smart contracts are stored publicly on every node of the blockchain, which has trade-offs.[62]The downside is that performance issues arise in that every node is calculating all the smart contracts in real time, resulting in lower speeds.[62]Ethereum engineers have been working on sharding the calculations, but no solution had been detailed by early 2016.[62]As of January 2016, the Ethereum protocol could process 25 transactions per second.[62]

In September 2016, Buterin presented proposals to increase scalability.[29]The Ethereum platform has multiple proposed uses.Bloomberg describes it as "shared software that can be used by all but is tamperproof."[63]Ethereum is used as a platform for decentralized applications, decentralized autonomous organizations and smart contracts, with "dozens of functioning applications" built on it by March 2016 according to the New York Times.[47][64]The intended scope of applications include projects related to finance, the internet-of-things, farm-to-table produce, electricity sourcing and pricing, and sports betting.[47]Decentralized autonomous organizations may enable a wide range of possible business models that were previously impossible or too costly to run.[65]The projects listed in this section are not exhaustive and may be outdated.Ethereum is being tested by enterprise software companies for various applications.Interested parties include Microsoft, IBM, JPMorgan Chase,[47][94] Deloitte,[95] R3,[64] Innovate UK (cross-border payments prototype).[96][97]

In March 2017, various blockchain start-ups, research groups, and Fortune 500 companies announced the creation of the Enterprise Ethereum Alliance (EEA)[98] — a nonprofit organization with over 116 enterprise members — including ConsenSys, Cornell University's research group, Toyota Research Institute, Samsung SDS, Microsoft, Intel, J.P.Morgan, Merck & Co., DTCC, Deloitte, Accenture, Banco Santander, BNY Mellon, ING, and National Bank of Canada.[99][100][101]The purpose of the EEA is to coordinate the engineering of an open-source standard and private "permissioned" version of the Ethereum blockchain that can address the common interests of enterprises in banking, management, consulting, automotive, pharmaceutical, health, technology, mobile, entertainment, and other industries, while working with developers from the Ethereum ecosystem.Certain members of the alliance have also indicated a desire to investigate and collaborate on hybrid architectures to potentially anchor private blockchains to the public Ethereum blockchain in the future, although concerns remain over the security, compliance, and regulations involved in bridging such permissioned and "permissionless" blockchains.[98][102][101]

Ethereum is used and being investigated as a permissioned blockchain in various projects.^ ^ a b c ^ ^ a b c ^ ^ a b ^ a b ^ a b ^ a b ^ ^ a b ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ a b c ^ a b ^ ^ ^ a b ^ ^ ^ a b ^ a b c d e ^ a b ^ a b ^ a b ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ a b c d ^ ^ ^ Ethereum Yellow Paper by Gavin Wood ^ ^ a b c ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ a b c d ^ ^ a b ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ a b ^ ^ ^ a b ^ ^ ^ ^ Media related to Ethereum at Wikimedia Commons