Ethereum questions. Can Bitcoin do these things too, with implemenation?

[colinistheman]

I just found out about Ethereum. I've watched a few videos from Vitalik Buterin and others on the subject and now I have a few questions if someone knowledgeable about Ethereum can help me out.

1. What mining algorithm does Ethereum use? I thought it was a Proof of Stake system? Does Ethereum use both Proof of Work and Proof of Stake?

2. How is Ethereum decentralized? It seems highly centralized because there is one organization and one website that is selling the Ether.

3. What incentive do individual nodes have for running and maintaining the Ethereum blockchain. In bitcoin this is a 25 BTC reward per block solved. In Ether... ?

4. Will any Ether be generated by Proof of Work or will it all be sold? If Ether will all be pre-mined, what sets it apart from the other pre-mined (scam) coins?

5. Is Bitcoin incapable of having the same functionality that Etherium is claiming it has? Like, Etherium is building this programming language into it. But could Bitcoin still accomplish these things with future software implementations and/or bitcoin core updates?

6. Is this still true:

• After the fundraiser closes, the total sum of ether produced will be denoted as X and we will instantiate a premine of 0.50*X for the fiduciary members, early stakeholders, strategic partners, a pool for use between the conclusion of the fundraiser and the launch of mining and finally a long term endowment. Specific percentages will be discussed in the Prospectus to be released on the day of the fundraiser (Feb 1st)

A premine? 50% of the whole supply? Isn't the massive amount of BTC being gathered in the IPO enough? I wouldn't invest for this reason alone.


Note: I may have some of my questions or data incorrect. If this is the case it's because I don't understand. In this case, please help me understand what I don't.

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[wenben]

They already raise well over 850k (or 1900 BTC) worth of coin based on the price.

It is a hype and pump and dump like any other coin out there.

[colinistheman]

They already raise well over 850k (or 1900 BTC) worth of coin based on the price.

3582 BTC donated toward Ethereum right now. That's $2,220,792 USD (After only 13 hours of being open for public purchase, with 42 days left).  It is going up extremely fast.  Assuming the numbers are true.

It is a hype and pump and dump like any other coin out there.

I think it is possible this could be right.  If this is a pump and dump (we will only know after it has been dumped), then I suspect it will be one of the biggest ones yet.

On one hand, allowing 42 days to accumulate all that BTC is the perfect way to take a LOT of peoples money.

But I want to weigh the potential value of Ethereum for myself once the questions in my OP have some answers to them.  It's better to make informed decisions for oneself.

[BitCoinDream]

I just found out about Ethereum. I've watched a few videos from Vitalik Buterin and others on the subject and now I have a few questions if someone knowledgeable about Ethereum can help me out.

1. What mining algorithm does Ethereum use? I thought it was a Proof of Stake system? Does Ethereum use both Proof of Work and Proof of Stake?

2. How is Ethereum decentralized? It seems highly centralized because there is one organization and one website that is selling the Ether.

3. What incentive do individual nodes have for running and maintaining the Ethereum blockchain. In bitcoin this is a 25 BTC reward per block solved. In Ether... ?

4. Will any Ether be generated by Proof of Work or will it all be sold? If Ether will all be pre-mined, what sets it apart from the other pre-mined (scam) coins?

5. Is Bitcoin incapable of having the same functionality that Etherium is claiming it has? Like, Etherium is building this programming language into it. But could Bitcoin still accomplish these things with future software implementations and/or bitcoin core updates?

Note: I may have some of my questions incorrectly stated. If this is the case it's because I don't understand. In this case, please help me understand what I don't.

Actually I have asked these Qs to ethereum guys multiple times, but as of now they are mum. In this regard u might be interested in a Bitcoin based approach for solving Ethereum problems by Gavin => http://gavintech.blogspot.in/2014/06/bit-thereum.html

[peeveepee]

Pretty insane they raise over 3k bitcoin in a day or two.

Anyone who buy into this madness care to give the reasoning?

[colinistheman]

Actually I have asked these Qs to ethereum guys multiple times, but as of now they are mum. In this regard u might be interested in a Bitcoin based approach for solving Ethereum problems by Gavin => http://gavintech.blogspot.in/2014/06/bit-thereum.html

Thanks for that read. It was interesting and good to read from Gavin Andresen.

To sum up what Gavin thinks about Ethereum, you can take the last few sentences: "Bitcoin already provides a global currency and distributed ledger-- there is no need to re-invent those wheels. Combining real-world information with Bitcoin is where things start to get really interesting."

So basically, he thinks Ethereum is unnecessary.

[CoinRocka]

Pretty insane they raise over 3k bitcoin in a day or two.

Anyone who buy into this madness care to give the reasoning?

Because sidechains are where the magic will happen.   

[colinistheman]

Because sidechains are where the magic will happen.   

Sarcasm?

If not, please explain why u think this

[LiteCoinGuy]

in the end this will be a niche product i guess. you must have the whole world as a Dev (like with bitcoin) to become really sucessfull in the long run.

you could also read on their page, that the amount of Ether can change when the devs want this...fiat here we come 

[Baitty]

Sounds like another ripple attempt what is up with the devs can change the amount at any time? what? developers trying to get rich and haven't created anything to ocmpare to Bitcoin.

[LiteCoinGuy]

Sounds like another ripple attempt what is up with the devs can change the amount at any time? what? developers trying to get rich and haven't created anything to ocmpare to Bitcoin.

actually yes 

[Baitty]

Can't see this project getting very far if that is the case this had to much hype and now the cracks are starting to appear.

[arbitrage001]

Sounds like another ripple attempt what is up with the devs can change the amount at any time? what? developers trying to get rich and haven't created anything to ocmpare to Bitcoin.

If they can create any amount, why are people buying now?

[Baitty]

Sounds like another ripple attempt what is up with the devs can change the amount at any time? what? developers trying to get rich and haven't created anything to ocmpare to Bitcoin.

If they can create any amount, why are people buying now?

I'm not 100% sure why people are it's a pretty fishy business investment but I'm going to have a look into it a little more and see if I can find the pros and cons of investing in this alt coin.

[BowieMan]

Can't see this project getting very far if that is the case this had to much hype and now the cracks are starting to appear.

Really? What's wrong with it? I mean I haven't really looked into it. But is it some kind of cloud technology limited by cryptographically controlled supply?

[00null]

This one answers all the questions:
https://www.youtube.com/watch?v=1eU2INYe4gk

[Baitty]

Can't see this project getting very far if that is the case this had to much hype and now the cracks are starting to appear.

Really? What's wrong with it? I mean I haven't really looked into it. But is it some kind of cloud technology limited by cryptographically controlled supply?

The biggest concern as already been discussed about the devs can change it at any time....which is kind of bad as that means its pretty much centralized.

[hamiltino]

I'll stick with Maidsafe thanks.

[BowieMan]

Can't see this project getting very far if that is the case this had to much hype and now the cracks are starting to appear.

Really? What's wrong with it? I mean I haven't really looked into it. But is it some kind of cloud technology limited by cryptographically controlled supply?

The biggest concern as already been discussed about the devs can change it at any time....which is kind of bad as that means its pretty much centralized.

Devs should never be able to change anything. At least with bitcoin, basically everyone can change anything. But it won't get accepted until the majority decides to. What makes me think: Who controls the Bitcoin core devs?

[zhinkk]

They already raise well over 850k (or 1900 BTC) worth of coin based on the price.

It is a hype and pump and dump like any other coin out there.

Seems silly to have all these presentations, meetings, plannings, whitepapers, code, etc for being a simple pump and dump doesn't it? But then again, when you're talking about millions of dollars people are willing to do a lot...