Have you ever wanted to purchase pizza with Ethereum? We’ve all heard the infamous story of how a man purchased a 10,000 BTC pizza back in the early days of Bitcoin. Who knows, maybe 1 ETH will be worth 10,000 BTC one day.
Ether Wallet and Pizza
Vitalik Buterin developed Ethereum, and it is used by developers in deploying and building decentralized applications. Consumers can make purchases with it. Groceries, pizza, and snacks can be exchanged for this cryptocurrency.
This innovation is an open software program that uses blockchain technology, much like Bitcoin. Before this technology was introduced to the market in early 2014 by a non-profit foundation and company in Swiss called Ethereum Switzerland; blockchain applications could not perform many operations. They were only limited to value transfer by manual action only.
Uses of Ethereum in Decentralized Applications
Such operations included peer to peer digital currency, and this design used by block chain and bitcoin was time consuming and tedious leading to development of a new approach and technology that is Ethereum. It is more efficient and easier to use. People have created applications for games, prediction markets, and exchanges. Some even wonder how to order pizza with Ethereum. Not only can you buy things online with it; you can also create smart contracts on top of the network inside ethereum wallets. This is implemented in this incredible ethereum wallet software. This innovation was launched on 2016 and it uses the latest Ether version.
Comparing Bitcoin and Ethereum Apps
Although people say that Etherum is similar to bitcoin, they are totally different applications. They might have a few similarity such as they are both publically distributed block chain, they vary a lot in their capability, function and what they are purposed to do. Bitcoin is designed to offer one application in particular, while Ethereum mainly focuses on running coded programs of decentralized applications regardless of the type.
“Although Ethereum was pioneered by technologies and invention from bitcoin,” Ethereum is by far much a better technology compared to bitcoin. This is true because Ethereum has not only made the processes of blockchain applications much more efficient and easy to use; it has also enabled and allowed anyone to run any program at a given time and memory despite of the programming language used.
Ethereum also enables the development of different thousands application used all in one platform, instead of building the entire block chain wholly for each and every new application. The current price of Ethereum in the market ranges roughly from 12 dollars to 13 dollars and it is worth that much because it is highly demanded by traders and it is not only flexible, reliable but also safe and easy to use.
Update: As of late March, each Ether is worth $50. It’s incredible what this technology is capable of.
How to make a smart contract on Ethereum
A smart contract describes computer code that are used to ease and facilitate the exchange of shares, money, or property. Programs control where money flow go. Contracts run on blockchain making it difficult for any fraudulent activity to happen or a third party to interfere with the program. It acts as a self-securing and self-operating program that executes automatically if specific conditions are met. For example, if the price of pizza or gas drops below a certain price, you may program your Ether wallet to purchase some immediately.
When using smart contract there is:
- An option contact between the parties which is written as a code in the block chain
- A triggering event that executes itself according to the given code
- A regulator that uses the block chain to apprehend the activities in the market as well as maintaining security and privacy.
What else can you do with Ethereum besides buying delicious pizza?
Don’t keep all your Ethereum in your wallet. There are a lot more investments out there. For example, Ether was used to build DAO (Decentralized Autonomous Organizations), which are run by coded programs that are designed to replace structure and rules of traditional organizations, thus eliminating the need for centralized control and people. That sounds interesting, but is it worth investing in these startups? To be clear, there are many promising dApps in the marketplace. The popular ones are definitely worth taking a look at!
It is also used by developers to enable and make it easier for them to deploy and build decentralized applications in a process that isn’t tedious and cumbersome.
Miners work to earn Ether which is the value token for Ethereum instead of mining for bitcoin
Benefits of a Decentralized Cryptocurrency
- Code is fixed. Third parties cannot change the data within smart contracts.
- It is very secure since it uses cryptography making sure that all applications are secure and well protected from hackers or any criminal activities.
- This application is based on zero downtime it cannot be switched off
- The technology cannot be corrupted since the applications are formed on consensus principles which are found online.
- It is flexible and not limited to any application created now and in the near future
- It is not tedious or cumbersome to use unlike other bitcoin and other technologies.
- You can buy food and pizza with it.
Can you mine Ethereum?
This is where one secures a network by creating, then verifying, propagating and publishing blocks on the block chain. We don’t recommend mining because it will be obsolete in a few years when proof of stake comes along. This process is not as simple as one thinks. It involves a long process, although if one doesn’t want to go through the entire process he or she is advised to use Hash Flare cloud mining contracts. To mine this application one must have enough memory space to accommodate all software and block chain and the right version of operating systme, and then follow the following steps, and the youtube video below should help with the wallet setup:
- Create a folder on the hard drive, whether you’re on Mac or PC
- Download Ethminer, Geth and Ethereum wallet software on your computer. You can also choose to use any of the online ether wallets.
- Open the command prompt or terminal depending on your OS
- Type the following commands: cd (which means change directory) and eth to change the current directory then press enter to execute the line.
- Create a new account by typing geth account new and create a password. Make sure to write this stuff down.
- Run Ethereum wallet with the fast flag, or use a web wallet. Desktop wallets need to sync for a few hours or days.
- You can now begin mining Ether!
Luckily, ETH is easily trade-able for bitcoins. You can switch between the two at very little cost through exchanges like Shapeshift. While Ethereum is highly volatile and prices can change at any time, it’s still one of the biggest coins on the market.
One can easily earn interest on his holding especially when Ethereum transits to proof of stake. It can be used to subsidize the purchase of high and new GPU. One can gain a voice in the Ethereum network and also a lot of support through mining. Remember, the hash rate determines everything.
Ether can be sold on several main exchange platforms such as Gemini, Kraken, and Coinbase directly which is a good way for an individual to earn a lot of money if prices rise.
This is the best part: how to buy Ethereum. Ethereum can be bought in different countries such as United States of America and Netherlands by either using online exchanges described above, or trading Ether for Bitcoins. Especially if one owns or holds bitcoins shares, for US dollars and in Euro on CEX.IO. Remember, don’t trade all your Ethereum for pizza!