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The Ethereum blockchain started as a proof-of-work (PoW) blockchain, relying on Ethereum mining for block production on its network. In this system, miners (computing equipment set up to run automatically) compete to find the answer to a complex puzzle. The winner gets to produce an Ethereum block on the network. Each block is filled with transactions and contains a block reward. The miner that wins a contest to discover the block earns the block reward and the transaction fees associated with the transactions in that block. Bitcoin price shoots up after regulator proposes first crypto rules But Buterin conceived of Ethereum as a platform on which two parties could enter into a contract on a price without a third party, according to Paul McNeal, a Bitcoin Evangelist and long-time cryptocurrency investor.
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