What you need to know before investing

The blockchain called the Ethereum platform has its own cryptocurrency and programming language. Its currency is called Ether (ETH). Blockchain technology allows Ethereum to create a public, decentralized transaction ledger to verify and record commercial transactions. Through the platform, network users can create, publish, monetize and use applications, as well as use cryptocurrency ether to pay for it. These apps are referred to by insiders as dApps.

In terms of cryptocurrency market capitalization, Ethereum has been second only to Bitcoin since May 2021. Here’s what you need to know about it:

  • Commercial and financial applications are created and shared via the open source Ethereum blockchain platform.
  • To use Ethereum dApps, users They have to pay a fee. Definitions are known as “gas” because they vary according to the computing power needed.
  • The cryptocurrency associated with Ethereum is called Ether or ETH.

Understanding Ethereum

Ethereum-based smart contracts and distributed applications (dApps) can be developed and deployed without the risk of downtime, fraud, or third party interference.

Bitcoin differs from Ethereum in that It is not a programmable network But it acts as a marketplace for financial services, games and apps that can be purchased with cryptocurrency ether and are protected from theft, fraud and censorship.

Ethereum founders

Blockchain enthusiasts launched Ethereum in July 2015. ConsenSys founder Joe Lubin was among them; The company develops blockchain applications using the Ethereum network. Here is a video where he talks about cryptocurrency:

Vitalik Buterin was another co-founder that gave rise to the concept of Ethereum and is now the company’s CEO. However, it is often referred to as The youngest cryptocurrency billionaire in history (The year of his birth is 1994).

To use Ether, you must be connected to the Ethereum network. However, ether is becoming increasingly accepted by merchants and service providers as a means of payment. Some online sites accept payments with Ether, including Overstock, Shopify, and CheapAir.

Ethereum business

Companies investing in the blockchain software platform are turning to Ethereum as an alternative to Google, Apple, Cisco, IBM, Microsoft, Ripple, Blockstream, JP Morgan, and others.

As of early October 2021, the value of ETH is $3,313.92.

The price of Ether is very volatile, which makes it an attractive competitor in the highly volatile cryptocurrency market. At the end of May 2021, Ethereum is ranked second in value after Bitcoin as the largest cryptocurrency. Analytics Insight estimates its market value at $500 billion, compared to Bitcoin’s $180 trillion. Eight other cryptocurrencies made Analytics Insight Top 10, including GDAX, Tether, XRP, Internet Computer, and Polkadot.

Ethereum based projects

Its platform is capable of coding, decentralizing, securing and trading just about anything. Several projects are testing the concept.

Azure cloud services based on the Ethereum Blockchain as a service (EBaaS) are available through Microsoft and ConsenSys. It aims to provide Enterprise customers and developers with a one-click accessible blockchain development environment.

The company will use the Ethereum infrastructure to build a data center network developed by AMD and ConsenSys by 2020.

The continuous evolution of Ethereum

In the early days of Ethereum, the founders realized that blockchain technology could be used for purposes other than the secure exchange of virtual currencies. ETH, Its Cryptocurrency, Created Primarily to facilitate payments for apps built on its platform.

Its unpredictability allows it to archive anything from medical records to voting systems without being hacked. The network’s reliance on cryptocurrencies has led to the development of business games and applications.

hard fork

Even if a blockchain is impenetrable to hacker attacks, it does not mean that hackers have not tried. More than $50 million worth of Ether was stolen In 2016 by a malicious actor. It originated in a project called “DAO,” which is a set of smart contracts created by a third party. A third-party developer was blamed for the success of the raid.

Instead of allowing the theft to continue, the Ethereum community decided to create a “hard fork,” in which the existing Ethereum blockchain would be scrapped and a new one created. These two blocks are known as Ethereum Classic and Ethereum.

Ethereum 2.0

ETH hit the 100 million mark in 2018 and was the second virtual currency after Bitcoin at the end of May 2021. With Ethereum, There is no limit to the number of coins that can be created, Unlike Bitcoin.

With Ethereum 2.0, the network should be able to scale while addressing the congestion issues that have slowed the network in the past. (A game called CryptoKitties one-sidedly slowed blockchain transactions in 2017.)

Bitcoin is not the only cryptocurrency with ambitions. With the launch of the platform, all kinds of applications can be run and data can be stored securely.

Ethereum cash

As with any other cryptocurrency platform, Ethereum is criticized for the following reasons:

  • Ether price tends to follow bitcoin price movements, Like all cryptocurrencies. We’ve seen this for years and now it’s very clear. For example, the value of Bitcoin fluctuated between $900 and about $20,000 in 2017. As of July 2021, the price of Bitcoin was hovering around $30,000 after hitting a bullish high of $63,000 in April 2021. As cryptocurrencies are characterized Highly speculative, they go through both bearish and bullish periods.
  • Each network consumes a large amount of energy. Transaction validation consumes a lot of computing power among crypto miners. Cryptocurrency mining on a large scale is depleting fossil fuels, which is one of the reasons that prompted China to crack down on cryptocurrencies.

There have also been criticisms of Ethereum’s fees. It is possible that Ethereum 2.0 will change that.

Simply put, what is Ethereum?

In addition to being an impenetrable database, Ethereum is also a distributed ledger. Ethereum (ETH) is a currency used to conduct transactions on the blockchain.

Unlike traditional databases, blockchain organizes information as a chronological “chain” made up of blocks of information. In the case of Ether, each transaction must be verified and added to the crypto-blockchain. In this sense, one Blockchain is often compared to ledger Because it records every transaction in sequence.

Ether transaction records are not the only data stored on the Ethereum blockchain. It allows software developers to develop business applications and games, known as dApps, and distribute them to customers. By using the World Wide Web, users can take advantage of the relative absence of risks associated with storing sensitive information.

What is ethereum trading?

The cryptocurrency Ether or ETH can be bought and sold through different trading platforms. Options now include Coinbase, Kraken, Bitstamp, Gemini, Binance, and Bitfinex. Cryptocurrencies can also be traded via investment apps like Robinhood and Gemini.

In addition to being very volatile, the prices of cryptocurrencies are also very speculative, so people who trade them try to profit from them. As of July 2021, 1 ETH is between $1800 and $2300. At the beginning of May I exceeded 4000 dollars. In 2013 it was approx $231.

Is Ethereum Better Than Bitcoin?

Blockchains like the Ethereum network were not created to support cryptocurrencies like Bitcoin. Ether was developed as an internal currency that can be used for Ethereum-based applications.

Or, in other words, Ethereum has a broader view. It can run all kinds of applications and the information can be stored securely.

Although they have different approaches to developing virtual currencies, the two have become competitors in the investment community. The virtual currency is exactly: currency without material existence, But it is represented by a series of codes that can be exchanged between two parties for a price.

How does Ethereum make money?

The Ethereum platform charges a fee for the use of dApps. Due to the fact that the definitions of “gas” vary according to the amount of computing power used, they are called “commissions for gas”.

According to an Ethereum Gas report, the average commission on gas was more than $10 per transaction in early 2021.

How long does it take to mine Ethereum?

Mining Ethereum and receiving Ether mining rewards takes a long time depending on several factors, including the price of electricity, the rate of electricity consumption, as well as the fees paid to the mining pool or hosting service related to the mining process.

In addition, these factors affect mining profits and increase mining difficulty targets, which are factors that influence the overall performance of the cryptocurrency market. In this popular Ethereum mining calculator, the hypothetical calculation estimates that it will take 51.8 days to mine one Ethereum.

What are the next steps for Ethereum?

Despite the skepticism surrounding Ethereum, it is worth noting that the project has received a great deal of attention. One problem is that Ethereum is not scalable, so at the moment it cannot support a large number of users, so it is impossible to create an “internet of things” that is disrupting Google, Facebook and other central platforms.

The Ethereum 2.0 update announced on December 1, 2020 addresses some of these issues. In addition to Raiden, which has been in development for many years, there are other technologies that can be used to tackle the scaling problem.

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