From b4947763d2e1b8045804f0c2716a4c3506202048 Mon Sep 17 00:00:00 2001 From: Rufus Pollock Date: Tue, 22 Mar 2022 10:36:32 +0100 Subject: [PATCH] [concepts/ethereum][s]: clarify Ethereum as protocol and token plus tweak properties list. --- concepts/ethereum.md | 20 +++++++++++--------- 1 file changed, 11 insertions(+), 9 deletions(-) diff --git a/concepts/ethereum.md b/concepts/ethereum.md index 3ed04f2..0fedd82 100644 --- a/concepts/ethereum.md +++ b/concepts/ethereum.md @@ -1,11 +1,14 @@ # Ethereum -Ethereum is a [cryptoasset](cryptoasset.md) that extends the [bitcoin](bitcoin.md) model to allow the execution of [smart contracts](smart-contracts.md). + +Ethereum is a [blockchain](blockchain.md) protocol and [cryptoasset](cryptoasset.md) that extends the [bitcoin](bitcoin.md) model to allow the execution of [smart contracts](smart-contracts.md). + +NB: following common usage we are using Ethereum for both the protocol itself, its mainnet and its associated token Ether or ETH. ## Properties -Ethereum is not a [currency](currency.md). +Ethereum is based on the [consensus algorithm](consensus-algorithm.md) known as Proof of Work [mining](mining.md). -Ethereum is a [speculative](speculation.md) investment. +Ethereum is not a [currency](currency.md). Ethereum is a protocol and Ether is a protocol token and not a currency. Ethereum is [deflationary](deflationary.md). @@ -13,15 +16,15 @@ Ethereum is a [bearer instrument](bearer-instrument.md). Ethereum has no [fundamental value](fundamental-value.md). -Ethereum has no [use value](use-value.md). +Ethereum has no [use value](use-value.md) (like most financial assets). Ethereum has no [income-cashflows](income-cashflows.md). Ethereum has a [present-value](present-value.md) of zero. -Ethereum has a [terminal-value](terminal-value.md) of zero. +Ethereum has a [market-value](market-value.md) derived from a combination of speculation and use for transactions on the network. -Ethereum is a [greater-fool theory](greater-fool-theory.md) asset. +Ethereum has a [terminal-value](terminal-value.md) of zero. Ethereum is a [non-productive](productive-asset.md) investment. @@ -29,9 +32,8 @@ Ethereum has a negative [expected return](expected-return.md). Ethereum is a [security](security.md). -Ethereum is based on the [consensus algorithm](consensus-algorithm.md) known as Proof of Work [mining](mining.md). - ## References + 1. Ante, Lennart. 2020. ‘Smart Contracts on the Blockchain – A Bibliometric Analysis and Review’. SSRN Electronic Journal, no. 10: 1–48. https://doi.org/10.2139/ssrn.3576393. 1. ———. 2021a. ‘Non-Fungible Token (NFT) Markets on the Ethereum Blockchain: Temporal Development, Cointegration and Interrelations’. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3904683. 1. ———. 2021b. ‘Smart Contracts on the Blockchain – A Bibliometric Analysis and Review’. Telematics and Informatics 57: 101519. https://doi.org/10.1016/j.tele.2020.101519. @@ -42,4 +44,4 @@ Ethereum is based on the [consensus algorithm](consensus-algorithm.md) known as 1. Hartel, Pieter, Ivan Homoliak, and Daniël Reijsbergen. 2019. ‘An Empirical Study Into the Success of Listed Smart Contracts in Ethereum’. IEEE Access 7: 177539–55. 1. Jason Kolber, Adam. 2018. ‘Not-So-Smart Blockchain Contracts and Artificial Responsibility’. Stanford Technology Law Review 21 (2): 198–234. https://law.stanford.edu/publications/not-so-smart-blockchain-contracts-and-artificial-responsibility/. 1. McDonald, Kyle. 2021. ‘Ethereum Emissions: A Bottom-up Estimate’. http://arxiv.org/abs/2112.01238. -1. Walch, Angela. 2019. ‘Deconstructing ‘Decentralization’: Exploring the Core Claim of Crypto Systems’. C. Brummer (Ed.), Crypto Assets: Legal and Monetary Perspectives, 1–36. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3326244. \ No newline at end of file +1. Walch, Angela. 2019. ‘Deconstructing ‘Decentralization’: Exploring the Core Claim of Crypto Systems’. C. Brummer (Ed.), Crypto Assets: Legal and Monetary Perspectives, 1–36. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3326244.