Mine It: The easiest—but slowest—way into Bitcoin is to mine it. Set up a dedicated computer to do nothing but decrypt Bitcoin blocks, install some Bitcoin-mining software and let it do its thing. Again, doing so on a mid-range desktop could take upwards of a year or more to fully decrypt a single block. That's not going to be worth the time or effort.
In 1998, Wei Dai published a description of "b-money", characterized as an anonymous, distributed electronic cash system.[12] Shortly thereafter, Nick Szabo described bit gold.[13] Like bitcoin and other cryptocurrencies that would follow it, bit gold (not to be confused with the later gold-based exchange, BitGold) was described as an electronic currency system which required users to complete a proof of work function with solutions being cryptographically put together and published. A currency system based on a reusable proof of work was later created by Hal Finney who followed the work of Dai and Szabo.
The best mining sites were the old fruit warehouses—the basin is as famous for its apples as for its megawatts—but those got snapped up early. So Miehe, a tall, gregarious 38-year-old who would go on to set up a string of mines here, learned to look for less obvious solutions. He would roam the side streets and back roads, scanning for defunct businesses that might have once used a lot of power. An old machine shop, say. A closed-down convenience store. Or this: Miehe slows the Land Rover and points to a shuttered carwash sitting forlornly next to a Taco Bell. It has the space, he says. And with the water pumps and heaters, “there’s probably a ton of power distributed not very far from here,” Miehe tells me. “That could be a bitcoin mine.”
At the time of public announcement in January 2014, the core Ethereum team was Vitalik Buterin, Mihai Alisie, Anthony Di Iorio, and Charles Hoskinson.[20] Formal development of the Ethereum software project began in early 2014 through a Swiss company, Ethereum Switzerland GmbH (EthSuisse).[21][22] Subsequently, a Swiss non-profit foundation, the Ethereum Foundation (Stiftung Ethereum), was created as well. Development was funded by an online public crowdsale during July–August 2014, with the participants buying the Ethereum value token (ether) with another digital currency, bitcoin.[6] While there was early praise for the technical innovations of Ethereum, questions were also raised about its security and scalability.[17]
The Ethereum network is kept running by computers all over the world. In order to reward the computational costs of both processing the contracts and securing the network, there is a reward that is given to the computer that was able to create the latest block on the chain. Every 15 seconds, on average, a new block is added to the blockchain with the latest transactions processed by the network and the computer that generated this block will be awarded 3 ether. Due to the nature of the algorithm for block generation, this process (generating a proof of work) is guaranteed to be random and rewards are given in proportion to the computational power of each machine.
It is possible that the Ethereum Platform will not be used by a large number of external businesses, individuals, and other organizations and that there will be limited public interest in the creation and development of distributed applications. Such a lack of interest could impact the development of the Ethereum Platform and potential uses of ETH. It cannot predict the success of its own development efforts or the efforts of other third parties.
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