In 2013, Vitalik Buterin, a Canadian teenager of Russian origins, created the platform, Ethereum. Vitalik is now a billionaire, and ethereum is worth over 2000 dollars at the time of writing this article. What’s really amazing about Ethereum is that it created a new door in the crypto industry by allowing other platforms to form. We’ll explore these in other articles. But today, this article will go over Ethereum, Its functionalities, and its whole system.
Ethereum is actually not the cryptocurrency; it’s the blockchain. The main coin of the Ethereum blockchain is called Ether. Unlike bitcoin, It has no supply limit, and it can be mined indefinitely, which has contributed to its lower price, despite being the second cryptocurrency by market cap (almost always). The lower price actually helps more people to be able to afford it, therefore, allowing a bigger community in. transaction speed is way faster than Bitcoin, and fees were reasonable when it was invented. However, today, with the invention of other cryptocurrencies, it’s not the cheapest option anymore.
The advantage and main benefit of the Ethereum blockchain are that it allows people to design and deploy smart contracts. As the name suggests, smart contracts are; basically, laws are written by someone on the platform, and other users can use the same laws to trade. This is done in the form of a token called ERC20, and it is usually used to raise funds and tokenize businesses and practices. There are many ERC20 tokens created, but the most famous one is probably tether, also known by its symbol as USDT. Tether is the pioneer of the stable coin, meaning that the value is stable and pegged to the US dollar and will not fluctuate. Furthermore, the company behind Tether has stated that it will pay anyone with a tether, 1 dollar if requested through the banking system. Thus, USDT has helped many people trade on the blockchain without having to deposit and withdraw their money in and out of their platform.
Non Fungible Tokens are on the rise and specifically popular with Artists and their followers. After revolutionizing the payment industry, crypto is revolutionizing the Intellectual property and rights industry with NFTs. You can buy an NFT representing the ownership of a digital product or art, or even music. There are no limits. Although technology is improving by the day, and we have a lot to go a long way, the system works flawlessly. Fungible means irreplaceable and refers to the fact that each token is unique and has its own identifier and cannot be faked or replicated.
Innovation and ETH2
Neither the Ethereum foundation nor Vitalik is stopping their innovation of Ethereum. On the contrary, the technology is improving by the day, and they are installing updates now and then, giving the MainNet, new functionalities. But the staple of innovation in Ethereum is probably going to be ETH 2, which is currently being developed. So if you are interested in ETH 2, make sure to read our article about it.
Ethereum was one of the first blockchains to be introduced to the public. And its functions were one of a kind at some point, but since then, many other blockchains with new features, faster transactions, and cheaper fees have come along that would have made Ethereum obsolete. But Ethereum has managed to stay alive with frequent updates, new features, and innovations like ETH2. At the moment, ether seems to be the runner-up in cryptocurrencies just after bitcoin, both in users, activity, and market cap. There is no sign that it will drop from that position any time soon, but we will have to see what will happen with innovations and if Ethereum can keep up with technology.
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