History of Ethereum
Day and day out, people are looking for new ways to trade and invest. In recent years, cryptocurrencies have become increasingly popular. These digital assets use cryptography to secure transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.
What Is Ethereum?
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
Ethereum is a public blockchain-based platform that features smart contract functionality. It enables developers to create decentralized applications (DApps) and issue new crypto assets, known as ERC20 tokens.
Ethereum’s Early Days
The history of Ethereum can be traced back to 2013, when Vitalik Buterin first proposed the concept in a white paper. Buterin, a Russian-Canadian programmer, was interested in Bitcoin but believed that it had limited potential as a platform for decentralized applications.
Ethereum was launched on July 30, 2015, with 72 million pre-mined coins. Its public blockchain enables developers to build and deploy decentralized applications. Ethereum is unique in that it allows users to create their own crypto tokens.
Ethereum’s popularity has grown exponentially in recent years. As of January 2018, Ethereum is the second-largest cryptocurrency by market capitalization, behind only Bitcoin.
Ethereum’s Price History
Since its launch in 2015, Ethereum has seen a tremendous amount of price volatility. In early 2016, Ethereum was trading below $10. By the end of the year, it had soared to over $1300. This was followed by a sharp decline in prices in early 2018. As of January 2018, Ethereum is once again trading below $1000.
Ethereum’s price is often driven by speculation and news announcements. For example, in June 2017, Ethereum surged in value after it was announced that the Enterprise Ethereum Alliance, a consortium of major corporations, had been formed to develop applications based on the Ethereum blockchain.
What Is Ether?
Ether is the native cryptocurrency of the Ethereum blockchain. It is used to pay transaction fees and fuel transactions. Ether can also be used as a form of payment for decentralized applications and services on the Ethereum network.
Ether is different from other cryptocurrencies in that it is not mined. Instead, it is created through a process called “proof of work.” This process is known as “mining.”
Miners are rewarded with Ether for verifying transactions on the Ethereum blockchain. They do this by solving complex mathematical problems. The more transactions that are verified, the more Ether is created.
The maximum supply of Ether is capped at 18 million per year. This limit will eventually be reached in the year 2140.
What Is a Smart Contract?
A smart contract is a contract that is stored on the Ethereum blockchain. This type of contract is self-executing, meaning it does not require a third party to enforce it.
Smart contracts are often used to create decentralized applications (DApps). These are applications that run on the Ethereum network and are not controlled by any central authority.
DApps are often used to create new crypto tokens. These tokens can be traded on decentralized exchanges or used to purchase goods and services.
The Future of Ethereum
Ethereum has been incredibly successful since its launch in 2015. However, it faces stiff competition from other cryptocurrencies, such as Bitcoin, Ripple, and Litecoin. Nonetheless, Ethereum has a strong community of developers and investors backing it, and its price is expected to continue to rise in the future.
Ethereum’s popularity is also likely to increase as more people become aware of its potential use cases. For example, Ethereum could be used to create decentralized versions of existing centralized services, such as Twitter or Facebook.
Ethereum could also be used to create new types of applications that are not possible with other blockchain platforms. This could lead to the development of entirely new industries and markets.
If you’re interested in investing in Ethereum, you can do so through a number of exchanges, such as Coinbase, Kraken, or Binance. You can also purchase Ether directly from other users through decentralized exchanges, such as IDEX.
Ethereum is a powerful platform with a bright future. Its popularity is only likely to grow in the years to come.