What is Ethereum? 10 Interesting Facts About It
Ethereum is one of the most popular Altcoins to trade-in. Ethereum is a distributed and decentralized computer system that features smart contracts, and it is based on blockchain technology. It is also an open-source platform for developers and computer scientists. It enjoys the number two position in the list of cryptocurrencies, but not for long. Ethereum was not usually number two in the list as it was mined later after some Altcoins. Since its creation and release to the public, Ethereum has managed to garner over 2 800% value and stole the show from other Altcoins. Its growth is constant and will soon give Bitcoin a run for its money.
Ethereum is used to run decentralized applications (dapps) that allow users to make direct agreements and transactions. The sole purpose of the creation of ethereum was to democratize everything from organizations, institutions to governments. The public knows Ethereum as being a regular cryptocurrency, but it is not. More facts about it might interest you. Here are some of them:
Ethereum was a crowdfunded project
Vitalik had the idea of Ethereum in 2013, but he did not have sufficient resources to make it a reality. He turned to crowdfunding, which became a success. In 2015, he managed to create and launch Ethereum that received public acceptance.
It was co-founded by a millennial
Did you know that Vitalik, the co-founder of Ethereum, was born in 1994? He came up with the idea to create Ethereum in 2013, still a teenager. Dr. Gavin Wood bought his vision and co-founded the network the following year.
Banks and tech giants actually like Ethereum
Bitcoin has been around longer than Ethereum. One would think that it would be the first to receive acceptance from financial institutions and corporations. However, banks have favored Ethereum and shown great support for it. Recently, a startup, R3, in the Ethereum platform was used to troubleshoot a blockchain problem in the presence of renowned tech companies. What better way to earn the trust of financial institutions than through smart contracts? Approximately, 84 financial institutions support the R3 project.
Ether is the crypto unit, not Ethereum
Don’t get mixed up between Ethereum and Ether. Ether is the native token that people trade in, Ethereum the underlying blockchain network. Ether is traded as a virtual coin like other Altcoins. It is also used inside the Ethereum network to run applications. Moreover, it can be used to monetize the work done inside the platform.
It is more than just a cryptocurrency
Perceiving Ethereum as simply another cryptocurrency is ignorance. Its role surpasses that of the average Altcoin. It is an entire platform that supports decentralized applications, and it has its tokens. What’s more interesting is that it allows developers and users to issue their own digital items within the network. For clarity, Ethereum is a crypto platform and a programming tool.
It has a dedicated team of developers and users that give feedback to the system for improvement. Despite being fully decentralized, it has retained its developers and workers to maintain and promote the network. In a sense, Ethereum is a centralized, decentralized system. The central development team is also the largest holder in the network. What gains Ethereum the public trust is because its developers do not hide behind pseudonyms, unlike Bitcoin.
Ethereum platform is an open-source
Ethereum allows users to work for it or build off it using Solidarity, the network’s programming language. Using this language, developers can create their own cryptocurrency and Dapps without downtime, fraud, regulation, or interference from third parties. The Ethereum community is ready to assist those willing to work with them.
It is alleged that the Ethereum Alliance is working on the implementation of open-source reference standards. The standards are projected to cover several stakeholders in the automotive industry, consultation, management, healthcare systems, entertainment, technology, and other industries. Open source has enabled developers and cryptocurrency enthusiasts to try their hand at creating smart applications.
Ethereum is not bound by limits like Bitcoins
Bitcoin remains the most recognized virtual coin, but the growth of Ethereum seems to be closing in on it. Bitcoin’s market cap is known to have a fixed amount of available currencies. The goal of Bitcoins is to mine 21 million coins, then no more. Ethereum does not have an actual cap. It’s only limit is that only 18 million Ether can be mined annually. Soon, it will surpass Bitcoin.
Ethereum hosts a majority of ICOs
Most of the emerging tokens are launched in Ethereum for their Initial Coin Offering sales. Over three-quarters of ICO sales are hosted on the blockchain. A majority of the ICOs are built on ERC-20.
These peer-to-peer contracts act as a means of collateral. The main goal of Ethereum services was to support smart contract deals. The smart contract eliminates the need for intermediaries, thus optimizing the system. Smart contracts have enabled the renewal and closure of incapacity to work certificates in the healthcare system and prescription of drugs.
ERC-20 is the first crypto to offer even price correlation without third parties. Following the principles behind the ERC contract makes ETH one of the two cryptocurrencies that shape the market. Bitcoin is the other coin.
Staking is another great way of earning passive income. You can stake your ETH and earn passive income through the year. The best is that you can withdraw your coins ( ETH ) anytime.
Ethereum is switching to Proof of Stake
Ethereum currently has a faster mine rate compared to Bitcoin. When it began, mining and Proof of Work were the critical technologies used, specifically to attract miners who kept the network running. However, that is subject to change since developers in the network are working on swapping from Proof of Work to Proof of Stake in an algorithm called Casper. This change will make mining less profitable. Thus, the future of Ethereum is still uncertain.
The growth of Ethereum can be credited to its decentralized applications and robust business case. But that is not the end of it all. Its evolution is still in progress, aided by the supportive community of developers and users behind it. Ethereum tokens can be traded on the bitcoinrevolution.ai platform if you are looking to venture into cryptocurrency trading.