Accept Payments in Ethereum

Ethereum (ETH)

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What is Ethereum?

The process of developing Ethereum began in 2013 when Vitalik proposed its White Paper. Ethereum works as a distributed world computer with a goal of creating a distributed computing platform which was made possible by the blockchain technology. According to Vitalik’s white paper: “The main aim of Ethereum was to provide a blockchain offering a built-in programming language which developers can use to create contracts allowing users to create the system.”

The systems described in his white paper included the ERC-20 tokens, decentralized exchanges, peer-to-peer gambling, reputation exchanges and mostly the smart contracts. Smart contracts are the main featured in Ethereum which self-executing programs which enable exchanges of valuable materials on the network which are then immutably stored in the Ethereum Blockchain.

Vitalik executed the whole project as described in his white paper an innovation which ended up being called Ethereum Virtual Machine. The EVM is a complete software which runs the Ethereum network enabling all people to carry out programming regardless of the language they speak. This invention attracted a lot of attention in the crypto space.

The development of Ethereum started in 2014. The entire project was carried out through the Ethereum Switzerland GmbH before moving to Ethereum foundation. In 2014 Ethereum also carried out a crowded sale which saw the raising of more than 14 million dollars. In September 2014 ether was distributed to the development team and investors. In 2015 Ether was launched and started functioning fully.

After its launch, everything did not run as smooth as expected. There was a fallout among the Ethereum community because of disagreements. The disagreements led to a hard fork which happened in 2016 leading to the creation of Ethereum classic. However, the fork did not affect the popularity of Ethereum. As time moved on businesses and investors began to invest in Ethereum. Ethereum became popular and is now the second highest ranked digital currency after Bitcoin.

How does Ethereum Work?

Ethereum is run by the Ethereum Virtual Machine. The network enables storage and execution of everything from DAOs to smart contracts. Unlike Bitcoin, Ethereum has been allowing developers to build dapps on top of it. Ethereum works to ensure that its protocol is very efficient and ensuring that it’s as modular and separable as possible. Ethereum is mined in a similar way to Bitcoin. The only difference is that Ethereum stores the most recent state of its network.

At the moment Ethereum uses an improved proof-of-work consensus from Nakamoto. The consensus ensures that Ethereum is secure since it contains millions of decentralized nodes. Mining in Ethereum uses the Ethash algorithm which is designed to ensure a fast verification time. However, the PoW will soon be replaced by the Proof-of-Stake PoS which will be implemented in the next upgrade.

The future of Ethereum

Ethereum is designed to last long. The availability of smart contacts and with developers building dapps on the Ethereum network ensures that Ethereum remains relevant. Since its launch, Ethereum has been using one programing language called solidity but is now working on a new programming language called Vyper. This new programming language will be simpler and secure.

 

Pros of Ethereum

  • Immutability- Ethereum is developed in a way that third parties cannot make data changes.
  • Security- The lack of a central point, use of PoW consensus as well as the use of cryptographic techniques ensures that the network cannot be hacked or manipulated.
  • Ethereum does not have a downtime. All its applications are always functioning and running.

Cons

  • Ethereum has been focused on decentralization and security and not putting the focus on scalability which has remained to be its biggest problem.

How to accept Ether payments on your website

ExagonPay makes it's easy and simple to accept Bitcoin payments in businesses. It enables customers to pay using all popular digital currencies including Ether. To avoid the volatility which is common in cryptocurrency ExagonPay converts all received payments into either THE Euro, USD or even Bitcoin depending on what the client prefers.

To get started with accepting all the popular digital currencies including Ether, Bitcoin, Litecoin, Bitcoin Cash, Ripple among other sign up with ExagonPay. If you want to use the platform for e-commerce purposes then create API credentials. However, if you want to use it for donations and simple transactions then just create a payment button.

Note that conversions into either the dollar of Euro require identity verification. However for those who want to keep their payments in digital currencies they do not need to verify their identity.

Get access to the ExagonPay platform.