Great explanation, its best best explanation I found out there, straight and simple. Would be great if you could make a new one with even more information.
I have spent 1 year trying to understand this and you have made me understand in 15 minutes.Thank you.I will come here everyday to ask for more until you upload more.
I don't think you give yourself enough credit. You've got very good pacing when you speak to yourself and I find it really easy to follow as you speak.
I always struggle explaining why blockchain is an improvement to the current systems when the person has no background knowledge. You did a great job explaining the way you did it.
I had a feeling that I had to watch this video. I wasn't disappointed. The part about all the different applications is eye-opening. And the video is indeed easy to follow for beginners.
I've been looking for an explanation like this for ages. Finally one that's well balanced, great information and detail but explained at a non-technical level. Kudos and thanks!!
look, man, I hope you see this comment, I have been constantly searching for a beginner guide on the internet for a while just to demonstrate how the ethereum network works, I have got to say you are the only one who did get the idea in it's the perfect shape to me. thank you from the bottom of my heart.
Thanks Kevin, at last someone explained ethrum in proper English in a calm easy understand example without getting excited and added mombo Jono . Thanks for doing this..
I must be simple or old I just wanted to find out how to watch the price or maybe buy in. A friend told me he made a bundle on Ethereum. He is not fourth coming.
This was the easiest for me to understand. I'd love if you could do an updated video on Ethereum and ETH. I really want to be able to easily explain what it is to friends and family.
The clearest explanation I have found so far, and I have been really looking. Great job. I would prefer you use a "white board" and markers, though, as the screechy sound of chalk on a blackboard bothers me. But perhaps that's just me and my peculiar sensitivity. (Also a "white board" with color markers might enhance your already impressive drawings.) So far, yours is the best explanation (but it's a tricky concept).
Thanks for the explanation. The only bit I didn't understand is at 6:47 when you mentioned that nobody can change the blocks because they would have to change the laws of thermodynamics. How is the blockchain made so invincible?
What I mean by that statement is that, the way the system is set up, it’s highly resource intensive (to the point of near impossibility) for a single miner to take over the network. If they were to somehow take over the network they could potentially do malicious things during the time they had control. bitcoin.stackexchange.com/questions/658/what-can-an-attacker-with-51-of-hash-power-do However, in order to make changes to the network's history (aka the database of all the past transactions), because of the computing power involved, they'd run into the limits of what we can make computers do based on our current understanding of the laws of physics (there’s some worry that a quantum computer, when finished, will be able to so supersede our current performance of computers, that if held by only a few people, could be used to take over the network. …however, if that were true we could just change the rules of the network to somehow put quantum computers at a disadvantage or, as far as I know, all miners could just upgrade to quantum computers so that it's a level playing field again.) This is why when you make a transaction you generally wait for a certain number of blocks to apply for confirmation before saying the transaction is "official". Because once it's buried a few blocks deep, then you know that the it's essentially impossible for anyone to change.
Right now the two are actually similar in terms of technology, so it's not necessarily outdated. However, in the future Ethereum Classic could become outdated if it doesn't have a large community around it. The difference between the two is a philosophical argument. Ethereum Classic holds that mistakes that developers make when writing smart contracts should never be reversed. Ethereum (mainstream) reversed 1 mistake made by a developer who made a smart contract that ended up losing millions dollars by early investors because of a bug. The mainstream ethereum isn't promoting reversing future mistakes. I think it was just because it was important for the reputation for early investors that their money wouldn't be wasted.
Kevin - thanks for the very helpful video, and your detailed answers to everyone's questions. I also appreciate your caution (in the comments) about predicting which services will benefit from decentralisation & which won't, and explicitly saying that ethereum isn't the answer to everything. That's a refreshing bit of scepticism and humility, compared to all the HUGE claims about ethereum that are being thrown around at the moment. One question. I understand the getting-rid-of-the-middleman bit. But I'm still not clear how ether, the currency, relates to ethereum, the platform. Why does ether have value? How does it interact with ethereum? And what's its practical purpose in the system, apart from its speculative value as an investment?
Thanks. Yeah, I think there is a tendency to assume that all the killer apps of an older medium are going to carry over into a new medium. (I'm guilty of it at the time I filmed this video) For example, I read somewhere that the first TV shows were simply filmed radio shows.... Instead of creating all the various types of TV shows that we have today, they just filmed the radio hosts sitting at a table talking into their microphone. It wasn't until the television matured that people started creating soap operas and sitcoms: shows that fundamentally couldn't exist on the older medium (the radio). But at the time the TV was new, even though it had all the potential for more evolved types of shows, the people couldn't think that far outside of what already existed... just like me when I was filming this video. So if I could go back and redo this video. I might leave out the examples I gave of the various blockbuster internet companies that could now be ported onto ethereum. I do think some of them may work in the decentralized system. In the same way, Larry King Live and Charlie Rose are basically filmed radio shows that have succeeded on TV... But it occurred to me after I filmed this video that the killer apps are unlikely to be ports from the old system but rather are going to be built from the ground up with all of the understanding of the pros/cons of decentralization in the mind of their creators. They're going to be totally new ideas that are fit for the medium. However, it's more difficult however to communicate the value of such a foreign thing to a beginner audience. Which is why I indeed might just choose to re-film the video as it is. For example, imagine someone explaining the value of TV to a friend after it was just invented: they could say (1) "the TV is like a radio with pictures that move! You can see the radio show hosts!!" (Filmed radio show) Or (2) "you can watch these moving pictures of families living their lives!" (family sitcom). To someone who had never heard of a TV (2) would probably sound foreign and perhaps spooky whereas (1) would be more familiar and easier to understand. Yet in time (2) became way more popular than (1). So it's the same with ethereum. A lot of the first dApp ideas that are being thrown around are to just decentralize the blockbuster apps of the internet right now. ...however, as you get into the intricacies of doing such a thing you realize that, actually, that may not be the best use for this new medium. And that, in fact, there are way *better* and more revolutionary ideas that can be created in such a medium. However, by pursuing the original silly idea it bridged the developers' understanding of what you can do on the new medium. ...and it also helped to bridge the pioneering users' understanding of the new medium who needed things defined in terms they understood. So for now I'm just leaving the the video as is since it defines things in terms people understand, however, I acknowledge that in 10 years when ethereum matures some of the "prophetic" ideas in this video may look totally ridiculous. --- Anyways, to answer your question: Basically, in order to run a piece of code on the system, the ethereum miners need to be paid for their computational costs of running the code. (Like the electricity bill, internet bill, and the computer costs, etc). It's the same how miners in bitcoin who verify transactions need to be given some sort of reward in order to be incentivized to do so. So each line of code you run in ethereum has a "gas cost" that you pay in 'ether'. That "fee" is then given to the miners as a reward for running the code. Some like to explain it by saying: bitcoin is like currency and ether is like oil... because you use ether as fuel to run "the decentralized computer" called ethereum. However the metaphor falls apart a little because ether can also be exchanged as easily as bitcoin can be... So unlike barrels of oil, you *can* use ether as a currency. So I'd say it like this: Ether can be used like bitcoin (exchanged as a currency) AND it can be used to run commands on a shared global decentralized computer called ethereum. From my perspective, ether might even make a *better* currency because it has more intrinsic value than bitcoin. (In other words, gold has intrinsic value outside of just being a currency because it can be used in computer chips, etc. Whereas paper currency has no intrinsic value... it's just paper... all its value is just perceptual.) Bitcoin's value is, like paper currency, just agreed upon "perceived" value. Whereas ether, which can be exchanged as easily as bitcoin, actually has intrinsic value too since it can be used to run decentralized applications.
Excellent Presentation! Very well said and broken down..So, that the everyday people can understand this new currency. Thank you...Keep up the good work!
You're doing a fantastic job! A bit off-topic, but I wanted to ask: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?
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Kevin, 3rd party (lawyer for example) is usually required for specialized knowledge. When we sign a contract we want to be sure there aren't any loopholes that could harm us in the future. I don't understand how removing a 3rd party in contract signing could benefit us or maybe I don't understand the ethereum value proposition in terms of smart contracts. So how would you explain smart contract to a lawyer?
Maybe I should redefine it to say a third party that is necessary to “validate or certify” (aka grant you permission) to do specific things. In other words when you write up a paper contract. The only thing that is enforcing that contract is the fact that you have courts and lawyers etc Well with ethereum you have this decentralized computer network that can enforce computer code without a human. So if you can express your contract in this computer language then you don’t really need courts, lawyers, etc. ...because you can just have the network do it. Of course it can’t replace everything and there is still a lot of evolution that needs to take place.
Very good video here !!! - the way a lot more should be done. Explaining things from their very basic form, helps everyday people get a good grasp of the technology in question. I really liked it, and learned from it, and your a good teacher - just a natural.
I might eventually. However, to be honest I only slightly understand it at this point. I would like to have a deeper understanding before I try and teach others.
What I do know is that it is a decentralized file system store with ether incentives built in, to ensure that people store files long term that may not be used frequently. As far as how it works, I don't know, yet.
I have only read the documentarian and stuff on the web written for programmers haven’t read any books on the subject. So I can’t give a good recommendation. Let me know if you find any you like.
I'm sure there are some great resources and tutorials that I don't know about. Maybe some other commenters could recommend something. ...but I have found this site to be valuable. It's just the documentation. Might be a little advanced unless you are already a developer. solidity.readthedocs.io/en/develop/introduction-to-smart-contracts.html
Explanation was dope. You used terminology w/ regards to Ethereum and blockchain tech better than I have ever heard. Sending you a big thank you, definitely subscribing. The hubbs and I are new fans. One question for you sir ~ what Blockchain specifically would you say is most attractive to a starter like me. And which one is your "favorite?" Thanks!!!
If you're talking about getting started as a developer I would say ethereum is definitely the easiest place to get started. If you're talking about using it as a currency, I would say Bitcoin Cash or Ethereum would be the best places to get started. If you're talking about as an investment... I would have to leave that decision to you because I don't like to give investment advice.
I enjoyed it thourly ,It allowed my to get a sence of whats really going on ! I'm very excited and can't wait to learn more . Thank you Kevin, I learned alot !
All good - thanks. The next step for me is to understand what am I buying when I buy ETH coin? How does it relate to the set of contracts created in the ethereum environment
This is a good question that I didn't address well in this video. ...but I think I explained it better in the first part of this video (before I start drawing on the whiteboard) ua-cam.com/video/m1ekLcfz65s/v-deo.html Basically, when you execute contracts on ethereum you have to pay in ether as a fee for using the network. (that fee is then distributed to the people who actually are running the network... and all of their electricity costs etc.) The fee is proportional to how much work you are doing... but for basic operations it is cents. You can also use ether as a currency in the real world (if you/more merchants, wanted to) in the the same way that people use bitcoin.
Thanks. Considering the supply of coins, which can drive future valuations, Bitcoin appears to have an advantage over Ethereum because the supply of Bitcoins is limited to 21 million while number of Ethereum Coins is UNLIMITED according to this source: www.cryptocompare.com/coins/guides/why-is-ethereum-different-to-bitcoin/ . There are other valuation drivers where Ethereum wins over Bitcoin e.g. contracts service provided by Ethereum is not available with Bitcoin. So, I would like to think that both coins are exciting. Question to Kevin and listeners: what else should drive the value of Ethereum?
I agree that block chain technology removes the dependency upon the third party for exchange of data. But dont we need the Third party for the UI (User interface). I mean you use Tinder for the data but also for the UI it provides
Once IPFS and swarm are fully developed then you could host HTML sites with JavaScript etc on those decentralized services that are not controlled by a third party. However, in the mean time the answer is yes.
Great video dude! So if one of the computers that holds a piece of the ledger breaks or for some reason is unable to be accessed for some reason, what happens in that case? Or am i completely missing something :)
Right now, there is a full copy of the ledger on each computer. Therefore, if one of the computers where to go out, it wouldn't phase it, because there are thousands of other complete copies. In the future, as the system scales they may find a way where each participant in the network doesn't contain a full copy. However, it will be organized in such a way that it can still withstand dropping participants.
Been searching these topics for days and your video is hands down THE BEST on UA-cam on explaining not only Bitcoin but Ethereum and the block chain. Really appreciate the time you put into it, it has helped me understand it more than you know! In your opinion Am I wrong in believing that Ethereum is going to be a bigger deal and much more useful(and therefore more valuable) in the future than Bitcoin? Thanks again!
I think it could very well be a bigger deal than Bitcoin since it can do currency *and* so many other applications. A common comparison is that of a pocket calculator vs a smart phone. (Ethereum is the smart phone while bitcoin is the pocket calculator) However, who knows how things will turn out. We'll have to wait and see. It's harder for people to wrap their mind around ethereum, which has hindered its popularity relative to bitcoin. However with the recent price increase, it looks like that attitude might be changing.
Thanks for sharing such valuable information! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). What's the best way to send them to Binance?
Just to be precise, it's not 'stock' (which is a share of a company) but rather it is a currency that runs the network. Ether is the currency that is used in the ethereum network. Bitcoin is the currency in the bitcoin network. So (this isn't investment advice) but yes one could buy ether in the same way they would buy bitcoin.
alright, I think I understand the basics now.. so my new question is: how do I participate in the ethereum network - is that what miners do? instead of using an internet browser to connect to servers owned by somebody, do I use a program that allows me to access the blockchain? bitcoin and ethereum each have separate blockchains, correct? I guess I understand the basic functionality but I dont understand what the blockchain can be used for. Like for example in the video, he said instead of a dating website server, the two individuals can connect directly through the blockchain. so in that case, is the ethereum blockchain a new decentralized internet? or does it still run on the internet?
Miners are performing a specific operation: they are verifying the validity of transactions and including them into the blockchain. So you don't have to be a miner to participate within the network. You can just be a person who is making transactions that the miners will then verify. In order interact with the ethereum network you need to have an internet browser that supports it. There are a few options at this point. The Mist browser is the one that is being built by the ethereum foundation. github.com/ethereum/mist/releases However, at this point Mist is still being built, so it's not exactly user friendly to non-developers. An easier way to connect is by using a browser plugin called MetaMask that turns your current internet browser into a ethereum browser. I did a tutorial series for ethlance.com that explains how to connect using MetaMask: ethlance.com/#/how-it-works --- Ethlance a good example of a decentralized marketplace which answers your second question. It gives an example of how any match making service could work. Of course it's still early days, and has some rough edges, that will be smoothed in time. I also think that in many cases, it will be just fine to have a centralized service. The decentralized services will only make sense in certain cases. --- As far as the big files (like the images on webpages and stuff) that would normally be stored on a server they are going to be stored on a thing called Swarm. Which is a peer to peer network (like napster was) where people will pay their peers micropayments to serve them files. Again it's still in development, however, the Mist browser now supports it. So you are still using the internet in the same way you use the internet in a peer to peer network. The difference is that instead of talking to a single server you are talking to several peers to get data. Swarm is similar to another technology called IPFS which has a good intro video here. ua-cam.com/video/HUVmypx9HGI/v-deo.html Ethlance, as far as I know, uses IPFS to host there images and stuff.
Yes, in the sense that they are both peer to peer networks. However, Swarm will use ether micropayments to incentivize people to host and retain data. With BitTorrent people where just doing it for free. With the incentive system it might evolve to the point where people will build out infrastructure to host many many files for the network since they're getting paid. Whereas in BitTorrent, there's really no reason to be sharing files with peers other than goodwill. So we'll see what happens.
This man managed to make something so complex sound so simple. Genius.
Man, you managed to explain it better that the owners
Thanks for the comments. I'm glad it helped. I'll do another video when I get a chance.
Great explanation, its best best explanation I found out there, straight and simple. Would be great if you could make a new one with even more information.
I’m waiting for more of your video😀
I finally found someone who explain it where I can understand it. thanks Kevin God bless you
I have spent 1 year trying to understand this and you have made me understand in 15 minutes.Thank you.I will come here everyday to ask for more until you upload more.
I've been watching videos all day trying to explain what all this means and your analogies have helped me out tremendously. Thanks!
Thank you. It is clear and straight to the point. Being a beginner I have tried to watch other videos but yours was by far
the best.
I don't think you give yourself enough credit. You've got very good pacing when you speak to yourself and I find it really easy to follow as you speak.
I always struggle explaining why blockchain is an improvement to the current systems when the person has no background knowledge. You did a great job explaining the way you did it.
I had a feeling that I had to watch this video. I wasn't disappointed. The part about all the different applications is eye-opening. And the video is indeed easy to follow for beginners.
Finally someone who can explain it in a truly simple way!!!
I've been looking for an explanation like this for ages. Finally one that's well balanced, great information and detail but explained at a non-technical level. Kudos and thanks!!
look, man, I hope you see this comment, I have been constantly searching for a beginner guide on the internet for a while just to demonstrate how the ethereum network works, I have got to say you are the only one who did get the idea in it's the perfect shape to me. thank you from the bottom of my heart.
Awesome video. I think you should do an in depth course. Your way of explanation is easy to understand and good examples as well.
Thanks Kevin, at last someone explained ethrum in proper English in a calm easy understand example without getting excited and added mombo Jono . Thanks for doing this..
The best video on Ethereum i have seen. Thank you
Great job Kevin. Created my first token and still overwhelmed. Avid coinbase and metamask user but love your refresher series. Right on!
Good explanation, filled in some gaps for me, thanks Kevin!
This is best video on the topic I found on UA-cam.
Been loking to understand ethereum, very comprehensive video, i got the basics.
Most helpful Ethereum explanation i've found on UA-cam. Thanks dude
I don't know why anyone would dislike this great video. It's not perfect but it a great start
Finally i start to grasp what Ethereum actually is what it could be used for. Thanks for the great explanation :)
It's amazing how you can explain for a noob low tech guy like me to understand this valuable information, thanks a lot man.
The best explanation I’ve found yet. I feel like I finally get it. Thank you!
Thank you so much dude, this clears so much things up. Amazing explanation!
Finally a simple explanation. Thank you!
I must be simple or old I just wanted to find out how to watch the price or maybe buy in. A friend told me he made a bundle on Ethereum. He is not fourth coming.
Thank you very much for your teaching. Excellent presentation. Learned a lot. Have a Blessed Day
really good explanation Kevin. Watched a bunch of videos and this one made it very clear
Thank you so much for sharing.best wishes from here in Iran 🇮🇷
Thanks Kevin, very clear and straightforward explanation.
Great explanation. Perfect use of analogies to describe what could be a very complex concept (for some).
that bank drawing is spot on
Best explanation that I have seen on Etherium. Thank you :)
Good explanation and it helps a lot. Please do another updated video. Also a how to buy bitcoin and ethereum.
You can buy bitcoin and ethereum at coinbase.com
you can buy bitcoin and ethereum at coinbase.com with bank or credit card. I prefer bank because there less fees
Thanks
Thank you for putting in the effort to explain it so simply. If possible, please do post detailed analysis of Ethereum and Blockchain technology.
This was the easiest for me to understand. I'd love if you could do an updated video on Ethereum and ETH. I really want to be able to easily explain what it is to friends and family.
YOU EXPLAINED IT PERFECTLY!!!!!!
Really helpful and clear explanation, thank you for sharing this with us.
Probably need a whiteboard.
I cringed at every mark. Whiteboard please!
loved the chalk feel. adds texture. puts hair on your chest.
Loved your way of explanation. Also loved those examples
When you open a UA-cam link and first thing you see is a man with Chalk and a Chalkboard, you know you’re about to learn some valuable shit
Thank you so much! You are a natural teacher.
Thanks for the simple explanation
Hello, what is your current setup for working on Ethereum DApps/Contracts? Thanks for the content.
Kevin would love to see a video from you on the effect of tokenization for building branding and content engagement.
Thanks for the lecture it helped a lot for me to understand Ethereum
Great educational explanation, well done
Thank you very informative, finally i feel like im coming closer to understanding what eth is!
The clearest explanation I have found so far, and I have been really looking. Great job. I would prefer you use a "white board" and markers, though, as the screechy sound of chalk on a blackboard bothers me. But perhaps that's just me and my peculiar sensitivity. (Also a "white board" with color markers might enhance your already impressive drawings.) So far, yours is the best explanation (but it's a tricky concept).
Thanks for the explanation. The only bit I didn't understand is at 6:47 when you mentioned that nobody can change the blocks because they would have to change the laws of thermodynamics. How is the blockchain made so invincible?
What I mean by that statement is that, the way the system is set up, it’s highly resource intensive (to the point of near impossibility) for a single miner to take over the network.
If they were to somehow take over the network they could potentially do malicious things during the time they had control. bitcoin.stackexchange.com/questions/658/what-can-an-attacker-with-51-of-hash-power-do
However, in order to make changes to the network's history (aka the database of all the past transactions), because of the computing power involved, they'd run into the limits of what we can make computers do based on our current understanding of the laws of physics (there’s some worry that a quantum computer, when finished, will be able to so supersede our current performance of computers, that if held by only a few people, could be used to take over the network. …however, if that were true we could just change the rules of the network to somehow put quantum computers at a disadvantage or, as far as I know, all miners could just upgrade to quantum computers so that it's a level playing field again.)
This is why when you make a transaction you generally wait for a certain number of blocks to apply for confirmation before saying the transaction is "official".
Because once it's buried a few blocks deep, then you know that the it's essentially impossible for anyone to change.
I clicked on subscribe and boom! happy 4k subscribers :)
Great explanation, thx. What's the reason for the interest in Ethereum Classic if it's an outdated version?
Right now the two are actually similar in terms of technology, so it's not necessarily outdated. However, in the future Ethereum Classic could become outdated if it doesn't have a large community around it.
The difference between the two is a philosophical argument. Ethereum Classic holds that mistakes that developers make when writing smart contracts should never be reversed.
Ethereum (mainstream) reversed 1 mistake made by a developer who made a smart contract that ended up losing millions dollars by early investors because of a bug.
The mainstream ethereum isn't promoting reversing future mistakes. I think it was just because it was important for the reputation for early investors that their money wouldn't be wasted.
Kevin - thanks for the very helpful video, and your detailed answers to everyone's questions.
I also appreciate your caution (in the comments) about predicting which services will benefit from decentralisation & which won't, and explicitly saying that ethereum isn't the answer to everything. That's a refreshing bit of scepticism and humility, compared to all the HUGE claims about ethereum that are being thrown around at the moment.
One question. I understand the getting-rid-of-the-middleman bit. But I'm still not clear how ether, the currency, relates to ethereum, the platform. Why does ether have value? How does it interact with ethereum? And what's its practical purpose in the system, apart from its speculative value as an investment?
Thanks. Yeah, I think there is a tendency to assume that all the killer apps of an older medium are going to carry over into a new medium. (I'm guilty of it at the time I filmed this video)
For example, I read somewhere that the first TV shows were simply filmed radio shows.... Instead of creating all the various types of TV shows that we have today, they just filmed the radio hosts sitting at a table talking into their microphone.
It wasn't until the television matured that people started creating soap operas and sitcoms: shows that fundamentally couldn't exist on the older medium (the radio).
But at the time the TV was new, even though it had all the potential for more evolved types of shows, the people couldn't think that far outside of what already existed... just like me when I was filming this video.
So if I could go back and redo this video. I might leave out the examples I gave of the various blockbuster internet companies that could now be ported onto ethereum.
I do think some of them may work in the decentralized system. In the same way, Larry King Live and Charlie Rose are basically filmed radio shows that have succeeded on TV...
But it occurred to me after I filmed this video that the killer apps are unlikely to be ports from the old system but rather are going to be built from the ground up with all of the understanding of the pros/cons of decentralization in the mind of their creators. They're going to be totally new ideas that are fit for the medium.
However, it's more difficult however to communicate the value of such a foreign thing to a beginner audience. Which is why I indeed might just choose to re-film the video as it is.
For example, imagine someone explaining the value of TV to a friend after it was just invented: they could say (1) "the TV is like a radio with pictures that move! You can see the radio show hosts!!" (Filmed radio show) Or (2) "you can watch these moving pictures of families living their lives!" (family sitcom).
To someone who had never heard of a TV (2) would probably sound foreign and perhaps spooky whereas (1) would be more familiar and easier to understand.
Yet in time (2) became way more popular than (1).
So it's the same with ethereum. A lot of the first dApp ideas that are being thrown around are to just decentralize the blockbuster apps of the internet right now.
...however, as you get into the intricacies of doing such a thing you realize that, actually, that may not be the best use for this new medium. And that, in fact, there are way *better* and more revolutionary ideas that can be created in such a medium.
However, by pursuing the original silly idea it bridged the developers' understanding of what you can do on the new medium. ...and it also helped to bridge the pioneering users' understanding of the new medium who needed things defined in terms they understood.
So for now I'm just leaving the the video as is since it defines things in terms people understand, however, I acknowledge that in 10 years when ethereum matures some of the "prophetic" ideas in this video may look totally ridiculous.
---
Anyways, to answer your question:
Basically, in order to run a piece of code on the system, the ethereum miners need to be paid for their computational costs of running the code. (Like the electricity bill, internet bill, and the computer costs, etc).
It's the same how miners in bitcoin who verify transactions need to be given some sort of reward in order to be incentivized to do so.
So each line of code you run in ethereum has a "gas cost" that you pay in 'ether'. That "fee" is then given to the miners as a reward for running the code.
Some like to explain it by saying: bitcoin is like currency and ether is like oil... because you use ether as fuel to run "the decentralized computer" called ethereum.
However the metaphor falls apart a little because ether can also be exchanged as easily as bitcoin can be... So unlike barrels of oil, you *can* use ether as a currency.
So I'd say it like this: Ether can be used like bitcoin (exchanged as a currency) AND it can be used to run commands on a shared global decentralized computer called ethereum.
From my perspective, ether might even make a *better* currency because it has more intrinsic value than bitcoin. (In other words, gold has intrinsic value outside of just being a currency because it can be used in computer chips, etc. Whereas paper currency has no intrinsic value... it's just paper... all its value is just perceptual.)
Bitcoin's value is, like paper currency, just agreed upon "perceived" value. Whereas ether, which can be exchanged as easily as bitcoin, actually has intrinsic value too since it can be used to run decentralized applications.
Your drawings are 🔥 .. lol nice video.
Well explained. Great work.
Excellent Presentation! Very well said and broken down..So, that the everyday people can understand this new currency. Thank you...Keep up the good work!
You're doing a fantastic job! A bit off-topic, but I wanted to ask: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?
Kevin, 3rd party (lawyer for example) is usually required for specialized knowledge. When we sign a contract we want to be sure there aren't any loopholes that could harm us in the future. I don't understand how removing a 3rd party in contract signing could benefit us or maybe I don't understand the ethereum value proposition in terms of smart contracts. So how would you explain smart contract to a lawyer?
Maybe I should redefine it to say a third party that is necessary to “validate or certify” (aka grant you permission) to do specific things.
In other words when you write up a paper contract. The only thing that is enforcing that contract is the fact that you have courts and lawyers etc
Well with ethereum you have this decentralized computer network that can enforce computer code without a human. So if you can express your contract in this computer language then you don’t really need courts, lawyers, etc. ...because you can just have the network do it.
Of course it can’t replace everything and there is still a lot of evolution that needs to take place.
Amazing video. Thanks for posting
Very good video here !!! - the way a lot more should be done. Explaining
things from their very basic form, helps everyday people get a good grasp
of the technology in question. I really liked it, and learned from it, and your
a good teacher - just a natural.
Very nice and good explanation.
Bravo Kevin , well done :)
The whole idea is perfectly good but for normal people this will take ages to learn how to do it.
Hai Kevin,
Thanks for this video. Can you maybe make an extra video about the benefits for using 'the Swarm' on Ethereum?
I might eventually. However, to be honest I only slightly understand it at this point. I would like to have a deeper understanding before I try and teach others.
What I do know is that it is a decentralized file system store with ether incentives built in, to ensure that people store files long term that may not be used frequently.
As far as how it works, I don't know, yet.
You are the best👍🏻
I understand more about Ethereum 🤗
Hi Kevin Thank you :)
Could you suggest any book for block chain technology for giginners.
I have only read the documentarian and stuff on the web written for programmers haven’t read any books on the subject. So I can’t give a good recommendation. Let me know if you find any you like.
very clear thanks for the intro video
I understand the contract part of etherium, but how it is a cryptocurrency?
Thanks for clearing my cloudy mind on this. Am thinking of making a voting app based on the same principle for my country.
Thank you Keven,
Great explanation.
Do you suggest any advanced book or online course to be Ethereum Developer?
I'm sure there are some great resources and tutorials that I don't know about. Maybe some other commenters could recommend something.
...but I have found this site to be valuable. It's just the documentation. Might be a little advanced unless you are already a developer. solidity.readthedocs.io/en/develop/introduction-to-smart-contracts.html
Great simple explanation
Explanation was dope. You used terminology w/ regards to Ethereum and blockchain tech better than I have ever heard. Sending you a big thank you, definitely subscribing. The hubbs and I are new fans. One question for you sir ~ what Blockchain specifically would you say is most attractive to a starter like me. And which one is your "favorite?" Thanks!!!
If you're talking about getting started as a developer I would say ethereum is definitely the easiest place to get started.
If you're talking about using it as a currency, I would say Bitcoin Cash or Ethereum would be the best places to get started.
If you're talking about as an investment... I would have to leave that decision to you because I don't like to give investment advice.
An excellent video, really very clearly explained.
Thank you so much !!! Very well explained !!!! Now because of you I SEE !!!
I enjoyed it thourly ,It allowed my to get a sence of whats really going on ! I'm very excited and can't wait to learn more . Thank you Kevin, I learned alot !
All good - thanks. The next step for me is to understand what am I buying when I buy ETH coin? How does it relate to the set of contracts created in the ethereum environment
This is a good question that I didn't address well in this video.
...but I think I explained it better in the first part of this video (before I start drawing on the whiteboard) ua-cam.com/video/m1ekLcfz65s/v-deo.html
Basically, when you execute contracts on ethereum you have to pay in ether as a fee for using the network. (that fee is then distributed to the people who actually are running the network... and all of their electricity costs etc.) The fee is proportional to how much work you are doing... but for basic operations it is cents.
You can also use ether as a currency in the real world (if you/more merchants, wanted to) in the the same way that people use bitcoin.
Thanks. Considering the supply of coins, which can drive future valuations, Bitcoin appears to have an advantage over Ethereum because the supply of Bitcoins is limited to 21 million while number of Ethereum Coins is UNLIMITED according to this source: www.cryptocompare.com/coins/guides/why-is-ethereum-different-to-bitcoin/ . There are other valuation drivers where Ethereum wins over Bitcoin e.g. contracts service provided by Ethereum is not available with Bitcoin. So, I would like to think that both coins are exciting. Question to Kevin and listeners: what else should drive the value of Ethereum?
Thanks. And is the number of Ethers limited (total maximum supply) like for Bitcoin?
It’s not fixed at 21 million like bitcoin. You can read about it here: ethereum.stackexchange.com/questions/443/what-is-the-total-supply-of-ether
Kevin awesome explanation!..thoroughly enjoyed it!
I agree that block chain technology removes the dependency upon the third party for exchange of data.
But dont we need the Third party for the UI (User interface). I mean you use Tinder for the data but also for the UI it provides
Once IPFS and swarm are fully developed then you could host HTML sites with JavaScript etc on those decentralized services that are not controlled by a third party.
However, in the mean time the answer is yes.
Kevin, thank you. That was very, very helpful. I look forward to viewing anything else you might do. God Bless.
Thanks for a great explanation. Helped a lot.
Excellent, thank you Kevin.
Dude this was a dope overview.
Great video dude!
So if one of the computers that holds a piece of the ledger breaks or for some reason is unable to be accessed for some reason, what happens in that case? Or am i completely missing something :)
Right now, there is a full copy of the ledger on each computer.
Therefore, if one of the computers where to go out, it wouldn't phase it, because there are thousands of other complete copies.
In the future, as the system scales they may find a way where each participant in the network doesn't contain a full copy. However, it will be organized in such a way that it can still withstand dropping participants.
Great video! It provides some very usefull insights! Thank you
Thanks Kevin, the light bulb finally came on. Why don't you go to DC and show congress how to balance the budget.
Great explanation! Well done!
Been searching these topics for days and your video is hands down THE BEST on UA-cam on explaining not only Bitcoin but Ethereum and the block chain. Really appreciate the time you put into it, it has helped me understand it more than you know! In your opinion Am I wrong in believing that Ethereum is going to be a bigger deal and much more useful(and therefore more valuable) in the future than Bitcoin? Thanks again!
I think it could very well be a bigger deal than Bitcoin since it can do currency *and* so many other applications. A common comparison is that of a pocket calculator vs a smart phone. (Ethereum is the smart phone while bitcoin is the pocket calculator)
However, who knows how things will turn out. We'll have to wait and see. It's harder for people to wrap their mind around ethereum, which has hindered its popularity relative to bitcoin. However with the recent price increase, it looks like that attitude might be changing.
Thanks man! Really simple I understood
wow, going old school using chalk and board. NICE!!!
Thanks for sharing such valuable information! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). What's the best way to send them to Binance?
Thank you so much for this explanation!
Great explanation! THANK YOU SO MUCH! Can you buy Ethereum stock the same way you can buy BITCOIN stock???
Just to be precise, it's not 'stock' (which is a share of a company) but rather it is a currency that runs the network.
Ether is the currency that is used in the ethereum network. Bitcoin is the currency in the bitcoin network.
So (this isn't investment advice) but yes one could buy ether in the same way they would buy bitcoin.
Pretty nice description! Simple as that
Could you please do something similar for Omisego?
great explainer video.
Dude u explain this much better than that ameer Rosic dude 🙌🏾 cudos to you man
alright, I think I understand the basics now.. so my new question is: how do I participate in the ethereum network - is that what miners do? instead of using an internet browser to connect to servers owned by somebody, do I use a program that allows me to access the blockchain? bitcoin and ethereum each have separate blockchains, correct?
I guess I understand the basic functionality but I dont understand what the blockchain can be used for. Like for example in the video, he said instead of a dating website server, the two individuals can connect directly through the blockchain. so in that case, is the ethereum blockchain a new decentralized internet? or does it still run on the internet?
Miners are performing a specific operation: they are verifying the validity of transactions and including them into the blockchain.
So you don't have to be a miner to participate within the network. You can just be a person who is making transactions that the miners will then verify.
In order interact with the ethereum network you need to have an internet browser that supports it. There are a few options at this point. The Mist browser is the one that is being built by the ethereum foundation. github.com/ethereum/mist/releases
However, at this point Mist is still being built, so it's not exactly user friendly to non-developers.
An easier way to connect is by using a browser plugin called MetaMask that turns your current internet browser into a ethereum browser.
I did a tutorial series for ethlance.com that explains how to connect using MetaMask: ethlance.com/#/how-it-works
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Ethlance a good example of a decentralized marketplace which answers your second question. It gives an example of how any match making service could work.
Of course it's still early days, and has some rough edges, that will be smoothed in time.
I also think that in many cases, it will be just fine to have a centralized service. The decentralized services will only make sense in certain cases.
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As far as the big files (like the images on webpages and stuff) that would normally be stored on a server they are going to be stored on a thing called Swarm. Which is a peer to peer network (like napster was) where people will pay their peers micropayments to serve them files. Again it's still in development, however, the Mist browser now supports it.
So you are still using the internet in the same way you use the internet in a peer to peer network. The difference is that instead of talking to a single server you are talking to several peers to get data.
Swarm is similar to another technology called IPFS which has a good intro video here. ua-cam.com/video/HUVmypx9HGI/v-deo.html
Ethlance, as far as I know, uses IPFS to host there images and stuff.
Good basic explanation Kevin. I think Swarm is like BitTorrent?
Yes, in the sense that they are both peer to peer networks.
However, Swarm will use ether micropayments to incentivize people to host and retain data. With BitTorrent people where just doing it for free.
With the incentive system it might evolve to the point where people will build out infrastructure to host many many files for the network since they're getting paid.
Whereas in BitTorrent, there's really no reason to be sharing files with peers other than goodwill.
So we'll see what happens.
I found the video extremely helpful! Pretty easy to grasp
i get it man you are a great teacher i get it thanks so much
You are awesome. You explained it so well.