A smart contract is a software, an autonomous blockchain application that once stated execute programmed instruction like a will until the end of the contract without any modification during execution.
The virtual monetary unit that permit to the system to function is called “Ether” or “ETH“. Although Ether was conceive for decentralized application on the ethereum blockchain, it is now an actif monetary exchange unit. Ether is nowadays the second most important cryptographic currency in the world behind the Bitcoin, with a capitalization greater than 47 billion us dollar.
Ethereum was founded in 2014 by Vitalik buterin (A young Russian Canadian programmer age 20). And it is develop by the Ethereum foundation, a swiss nonprofit.
Emission of Ether: mining
New ethers are emitted through blocks mining, process through which transactions are verified, registered emitted by block and secure in the blockchain. Each 15 seconds, an average of 5 ethers are emitted by block and redistributed to miners. Thus an emission of 10 millions ethers per year.
It is planned in the future to change the process of mining actually Proof-of-Work to the type Proof-of-Stake to reduce network electricity consumption. This update also include changes concerning the emission of Ethers. The remuneration of miners would likely reduce, but the decision is not yet taken by developers.
The first block “genesis” was created the 30 july 2015, with around 60.000.000 ETH placed in presale and 12.000.000 ETH for developers. Upto today more than 104 millions ethers are in circulation. The value of 1 ether is $152,33 USD.
As for the bitcoin, Ethers can be kept in e-wallet. This associated with a public key (the address that to receive ethers from other accounts), and a private key (to send ethers to other account).
Cost of execution of smart contracts
The execution of smart contract, may it be a simple transfert of Ether between two accounts or the execution of many lines of codes of a contract, needs the payment of miners for the task executed. This renumeration is made in Ether in a very small scale called gas.
Each operation on the ethereum blockchain cost “gas” which is equivalent to the effort furnish to treat this operation. The prize of gas fluctuate in function of the market. Each miner can fix his prize corresponding to the number of ether that he want the the effort that he is ready to make.
How to receive or send ethers?
Start by creating your Ethereum wallet.
Generate your public address, which is presented in the form of a chain of characters like « 0x8ae11430be7c344c52cfa98db1a351ce9bcc4259 », equivalent to an account number.
- To receive Ether, you just have to give your public address to your debtor.
- To send ethers, access your wallet, use the public address of your partner and follow the necessary stages.
Buy, Sale or Exchange ethers:
A big number of exchange platforms gives you the opportunity to convert your currencies (Dollars, Euro, etc.) into crypto currencies (and reciprocally), against some charges.
Some publicity websites also permit you to obtain free fractions of Ethers. (exp. ETH faucets)