What is Ethereum ? is it the Next Big Cryptocurrency like Bitcoin?

 Ethereum, a new technology invented  by a 19-year-old genius, has been taking the finance world by storm.  The media is buzzing about its growth of over 2,000% in 2017. But like  Bitcoin, a cryptocurrency that's much better known, Ethereum is still  shrouded in mystery for most people. Is Ethereum profitable? Is it the  next Bitcoin? And — no shame — what on earth is a blockchain, anyway? Let's start with the basics. Ethereum is a blockchain, or,  very simply, a virtual ledger or a list of records. It was inspired by  Bitcoin, but what makes Ethereum special is that its technology is more  like a shared world computer where people can frictionlessly exchange  information, data and resources, without fear of hacking, manipulation  or censorship — that's the idea, anyway. It’s easy to oversimplify an emerging technology. Just like  the internet in the early 1990s, people don’t quite know how to talk  about Ethereum and blockchain technology yet. But Ethereum has already  begun to spark innovation in the financial services industry, among  others. It's important, then, that we clear up a few misconceptions  about it. 

 Ethereum is not just another Bitcoin.

There are a lot of coins floating out there in the ether (no pun intended) — Dogecoin, Potcoin, Coinye  (RIP). It’s easy to dismiss each as a trend or just another  cryptocurrency with speculative value. But there's a big difference  between Bitcoin and Ethereum, just like there's a big difference between  a cryptocurrency and a blockchain. "Ether" — you'll hear this term a lot — is the actual  cryptocurrency associated with the public Ethereum blockchain, where it  is used as "gas" to fuel smart contracts. Cryptocurrency is programmable, digital money.  A blockchain, however, is best described as a  distributed ledger, where people across the world run copies of the same  uneditable record of transactions. Satoshi Nakamoto designed this  distributed ledger system (the Bitcoin blockchain) in order to allow his  cryptocurrency (Bitcoin) to be sent peer-to-peer around the world  without a trusted third party. Bitcoin the blockchain was built in  service to Bitcoin the currency. As more people started using Bitcoin,  others took notice of the underlying blockchain technology and realized  it could have much bigger applications than simply sending money.  That’s when Vitalik Buterin, then just a teenager, invented  the Ethereum blockchain to be fully programmable using smart contracts.  Ether, the currency, exists in service to Ethereum the blockchain —  instead of the other way around. Ethereum is a computing platform for building full-scale  applications. People call Ether “gas” in this system — it’s simply used  to pay for the use of the Ethereum world computer. Still confused? Watch  the latest season of Silicon Valley. Many folks agree the “new, decentralized internet” they’re talking about is Ethereum, or something like it. 

The hype isn't just about the price — it's about Ethereum's potential.

 When people talk about Ethereum, they tend to talk about the  price of ether. While the skyrocketing price may be an indicator of the  platform’s growth, the real story is much bigger than that: Ethereum is  a decentralized application platform that can change the way we do  almost everything. Take identity: There are currently 1.5 billion people  who do not have proper legal identification. With Ethereum, identity  doesn’t have to be linked to and endorsed by a stable government. The  Ethereum decentralized application (usually referred to as DApp) UPort  is establishing a global, unified, self-sovereign identity system — a  system that would allow any person in the world to establish and control  their own digital identity. Similarly to how developing countries  leapfrogged copper-wire technology and headed straight to 3G, Ethereum  enables people to bootstrap their own economic inclusion. Or take forecasting: As seen during the 2016 U.S.  election cycle, current polling systems aren’t always accurate. Gnosis  is a new way to forecast using blockchain technology. The Gnosis  prediction market is decentralized, which means anyone can contribute,  not just established organizations, and requires people to bet on the  outcome of an event rather than just voice their opinion with nothing at  stake. When the outcome is confirmed, those who bet correctly are  rewarded and those who were wrong lose their stake. Once established,  this ecosystem hopes to be a democratic, efficient and completely  transparent means of predicting outcomes. 

Welcome to the future.

 

How to buy Ether with Bitcoin

Below is a simple step-by-step guide in how you could purchase Ether from the Luno-supported countries. 

1. STEP ONE: GET A LUNO ACCOUNT

Get your free Luno account. You will be asked for some identity information, which we need to verify. 

2. STEP TWO: DEPOSIT MONEY INTO YOUR LUNO WALLET AND BUY SOME BITCOIN

Log into your Luno account and navigate to Accounts. Click on your local currency account and click on ‘fund account’. After you’ve added money to your Luno wallet, you’ll be able to buy some Bitcoin with it. 

3. STEP THREE: FIND A BITCOIN-TO-ETHER EXCHANGE

You can buy a lot of things with Bitcoin, including other digital currencies! CoinMarketCap has an extensive list of exchanges that allow you to buy and sell Ether. Look for the the ETH/BTC currency pair; they’re ranked by 24h volume. Poloniex has historically held the highest volumes. Another popular solution is an "instant exchange" like ShapeShift or Changelly,  both which will require you to send Bitcoin (from Luno) and it will  convert it to Ether, which it will send to your Ether wallet.