Ethereum, the second most popular cryptocurrency by investors

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From a peer-to-peer network to a virtual currency that can be bought and sold, like other cryptocurrencies. Here’s how Ethereum has evolved.

Ethereum boom

Known as the second cryptocurrency after Bitcoin, Ethereum is experiencing a golden moment with a huge growth in the interest of its owners. As you can see on the exchange platform youngplatform.com/ethereum, Ethereum has shown a great personality in recent years and proves that it is no longer living in the shadow of Bitcoin. After dropping in January, the cryptocurrency is looking to recover quickly, chasing the 50 DMA target. Regarding the price of the dollar, the resistance at $2500 is a strong psychological barrier for buyers, beyond which a higher target can be made.

Reasons for growth

But what were the reasons supporting Ethereum that allowed it to position itself in second place as capital? The most optimistic analysts see the potential for Ether to reach $20 trillion in capitalization by 2030. One of the news about Ethereum is that there will be a paradigm shift. In particular, Ethereum 2.0 will arrive. Aiming to realize the long awaited and hoped-for process towards Proof of Stake.

Birth

Ethereum was born from the idea of ​​Vitálik Buterin, a Russian programmer and writer who traveled the world for six months in 2013, had several conversations with Bitcoin developers and came up with the idea of ​​creating a new version of it. He searched for work related to bitcoin in many forums, until he finally started writing articles for a blog, analyzing the economic, technological and political aspects of cryptocurrencies.

Development

Buterin wrote several publications on Bitcoin and became an expert, and in 2012 Bitcoin Magazine began publishing a hard copy, which was hailed as the first serious publication dedicated to cryptocurrency systems. Buterin has also served on the editorial board of Ledger, a peer-reviewed academic journal that publishes comprehensive research articles on cryptocurrency systems and blockchain technology.

Ethereum network

Buterin slowly began developing his own project, coming to co-create Ethereum, a blockchain that allows various functions, from developing applications and software with the power of cryptocurrencies like Ether to smart contracts, that is, software that can be stored and managed on the Ethereum platform. The network was introduced in 2014 by the core team consisting of Vitalik Buterin, Mihi Alize, Anthony Di Yorio, Charles Hoskinson, Joe Lubin, and Gavin Wood. These developers also decided to conduct an Initial Coin Offering (ICO) for Ether, the local token of the Ethereum network.

Network value

The characteristics that made Ethereum unique and valued by the cryptocurrency enthusiast community are combined together in its decentralized platform that allows peer-to-peer creation and deployment of smart contracts created in the full Turing programming language. On this network, the cryptocurrency associated with it, Ether, which stands behind Bitcoin, is transmitted through capitalization. The currency is used to “pay” for the use of computational power on a peer-to-peer network. If it seems too technical to understand, just think of a network with several points connected to each other, with no start or end point, through which information (contracts) can be exchanged that can be used for different purposes, for example for electoral systems, name registration domain, financial markets, crowdfunding platforms, intellectual property, etc.

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