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Created in 2014 by Vitalik Buterin, Ether was not designed as a cryptocurrency, but rather as payment for actions completed on the network. The entire system runs on smart contracts, which are variation scenarios used to fulfill terms of a contract on the Ethereum blockchain. With that said, the online exchanges supporting bitcoin and other virtual currencies, may also be used to purchase ether. Bitcoin may be used on the Ethereum system several ways such as: Exchange : Since Ether is meant as...

Etherum

Bitcoin may be used on the Ethereum system several ways such as:

Exchange: Since Ether is meant as payment for smart contracts, users may exchange bitcoin for Ether, fulfilling contracts on the Ethereum network, then trade it back for bitcoin to maintain the bitcoin value.

Pegged value: Ether comes in handy for trading with multiple parties and may be tied to the value of bitcoin. This allows all parties to use Ether with confidence that its value will remain in line with bitcoin.

2-way peg: A portion of code, known as the bitcoin relay, makes it possible for users to sidechain a bitcoin into the Ethereum network allowing contracts to flow with the support of the bitcoin system and value.

Mining

Before you prepare to start digging and swinging your pickaxes, mining is simply a means of earning a virtual currency. Computers used by all of us around the world keep the Ethereum network up and running. As long as the network sees activity, it's kept alive and compensates the users. A total of 5 Ether may be awarded, or mined, every few seconds by the computer recognized as the last to add a new block on the chain.

So, how do you find blocks, add to the blockchain and receive your Ether? Users must first set up an address, known as etherbase, to receive mined currency. The process is one that can be a bit overwhelming to understand, but mining is best explained on the ethereum.org website, which offers details instructions to walk you through.

Etherum Bitcoin

In terms of sending Ether using the command line, complete accuracy is required. Should you enter the incorrect address, you will not be able to recover the ether.

In the case of online gambling, players may deposit using an e-wallet to fund accounts with any of the casinos listed below.

External Links

Ethereum Website

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