The ethereum blockchain is stored across all computers running the ethereum client software. This network of computers is also what makes the system more decentralized. Compared to traditional databases where a company like Microsoft (NASDAQ:MSFT) hosts its own private database servers, the ethereum network has no central server so there are no server failures and hacking attacks or data loss.
When you refer back to your ether holdings on an exchange, you need to send transactions back to that exchange’s computer system in the same way as when trading stocks online through a brokerage account. The difference with cryptocurrencies is that instead of an middleman, cryptocurrencies work between each other without any third party involved. That means, if I want to deposit Ethereum into my Coinbase account on GDAX, I don’t have go through Coinbase directly myself as everything happens over a blockchain – similar how an online bank transfers money between your savings account using ACH transfer. It’s really designed for people who are tech-savvy enough or already know how expensive banks can be
What do I need to start mining? Do I need anything special?
If you want to mine Ethereum or another cryptocurrency like Monero or Zcash you will first need some kind of CPU and GPU graphics card and CPU mining software . These two options allow CPU mining: OpenClusterMiner and Claymore Dual Mining Ethereum AMD+NVIDIA GPU Profitability ETH NVIDIA GPU Mining 2017 Nvidia GTX 1070 Mining Performance Test