Ethereum is a decentralized platform on which smart contracts are launched. These are applications that work in strict accordance with the algorithm without the possibility of stopping, censoring, falsifying, or intervening by third parties.
The project was released during ICO of Ether in August 2014. It was developed by the Ethereum Foundation, a Swiss non-profit association, in which many supporters all over the world participate.
At the beginning of Ethereum history, the platform used the Proof of Work consensus protocol (the same as in Bitcoin network). At that time, the alternative was only Proof of Stake, but it worked unstably. But when PoS was adjusted, the developers decided to switch to this algorithm.
This article explains what is Ethereum cryptocurrency, where to buy ETH, and is Ether a good investment. Are you interested? Let’s discover ETH coin and its long road to glory with Changelly!
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Ethereum (ETH) Value
The ICO was launched in July 2014 and brought more than $18 million to Ethereum developers. Full network operation began a year later. Since 2015, the platform has been continuously improved.
At the beginning of trading, it was possible to purchase Ether for only $0.8-2. In 2016, after creating a wallet, the cryptocurrency became more demanded, and the price rose to 10 dollars. Then a difficult period of the exchange rate between 7 and 15 dollars per ETH passed.
The demand for cryptocurrency is mostly determined by its adaptability and compliance with the current needs of society in the financial sphere. An indirect sign of key market players is the increased attention of large corporations: leading developers and investors.
Ethereum (ETH) ranks second in market capitalization among all cryptocurrencies. The currency experienced all the ups and downs. The all-time highest price was tested on Jan 13, 2018. ETH crypto was worth of $1,432.88. The lowest price was fixed on Oct 21, 2015. We cannot imagine Ethereum price to be THAT small, but it was only $0.420897.
🗒️ You can check out the price-list formation and more details about the coin on BitcoinWiki.org.
Ethereum (ETH) Blockchain Review
The idea was proposed by the founder of Bitcoin Magazine Vitalik Buterin at the end of 2013; the network was launched on July 30, 2015. At first, Ethereum cryptocurrency did not differ from Bitcoin. This was the same blockchain with mining and the ability to quickly make a transaction with coins for a small commission. The size was set by the user. Miners are still engaged in the validation of network blocks and receive remuneration for it. Ethereum uses Proof-of-Stake mining protocol.
Smart contracts allow you to manage blockchain resources. This is code written in the original Solidity programming language. The developer sets the script built on the “if-then” principle, and the blockchain nodes execute this program in automatic mode with recording the results of each operation into the network.
This allowed creating applications based on Ethereum that work in accordance with the established algorithm without failures, censorship, fraud, and third-party participation. If one of the nodes executing a smart contract stops working, this will not affect the stability of the application as a whole.
What Ethereum blockchain allows users?
- Build complex smart contracts for the supply chain management.
- Run various applications, from utilities to games.
- Turn into tokens any assets, including various cryptocurrencies, fiat, and even precious metals.
- Create user identification services, document authentication, etc.
- Organize a decentralized asset exchange.
The ERC-20 standard is set for all tokens. It contains a set of rules for creating coins based on Ethereum. Their observance is necessary for regular interaction of tokens with the system.
Access to blockchain resources is not free. A commission is paid for each operation. It is measured in units of gas. For all computational operations has its own fixed rate depending on the complexity. But you need to pay for this gas in Ethereum, and the cost of each unit of fuel is set by the user. The higher the execution price of a smart contract, the higher its priority and processing speed.
The price of gas is the amount of Ether that you can spend on each unit of gas. The gas price is measured in gwei. Wei is the smallest unit of Ether, where 1018 Wei is just 1 Ether. One gwei is equal to 1 000 000 000 Wei.
Essential features of Ethereum (ETH) mining:
The block time is 12 seconds
Block reward is 3 ETH (Extra reward for including Uncles as blocks)
Ethash Mining Algorithm (DAG)
You can explore all the technical details about the blockchain in the official Ethereum White Paper.
Ethereum team is always very serious about plans and their implementation. So they update their roadmaps quite often. The latest roadmap was published in March 2019.
The common name for this development step is Ethereum 2.0. Before moving to Ethereum 3.0, the team needs to accomplish 7 phases:
- Phase 0. Create and organize some validation for sharding implementation.
- Phase 1. Collate Binary Large Objects in shards.
- Phase 2. EVM state transition function.
- Phase 3. Light client state protocol.
- Phase 4. Implement cross-shard transactions.
- Phase 5. Tight coupling with the main chain security.
- Phase 6. Super-quadratic or exponential sharding.
Then the team wants to implement Casper CBC integration.
Ethereum Latest News
The largest cryptocurrency exchange Binance has reduced the number of confirmations required for users to deposit funds in Bitcoin and Ethereum.
Now, to transfer deposits in Bitcoin, the exchange client only needs to wait for one confirmation of the network, not two, as it was before. Ethereum and tokens based on this platform will be credited after 12 confirmations (previously there were 30).
For storage of ETH, you can use quite a wide range of wallets: hot and cold. We want to display only the best Ethereum (ETH) wallets in the following list:
Ledger Nano S is the most popular cold hardware wallet among Ethereum users. It costs $85± but is worth it. A cold wallet is a really safe place to store your assets.
Trezor Wallet is one more option to store your cryptocurrency offline. It allows you to store Ethereum and ERC20 tokens.
Atomic Wallet is one more option to store Ethereum coins. This wallet is available for desktop and mobile (iOS, Android) for free.
Metamask is a desktop wallet funded by Ethereum Foundation and Consensys.
Mist Wallet is a desktop wallet created by Ethereum Foundation. This is a basic wallet for Ethereum users.
Exodus. This wallet is not open source so the devs can’t check this wallet properly. But still, it’s a functional wallet for Ethereum storage.
MyEtherWallet is the most popular Ethereum web-wallet. This wallet was hacked once so be very fussy in choosing it.
TrustWallet is a good Ethereum and ERC20 mobile wallet acquired by Binance exchange.
Where to trade Ethereum (ETH)?
It’s easy to exchange ETH coin due to a significant number of platforms accepting this cryptocurrency.
Buy Ethereum (ETH) at Changelly
Changelly platform offers you a way to buy ETH with your banking card swiftly, safely, and with minimal authentication procedure. The fiat payment process is powered by our partner Indacoin and takes just a few simple steps to take.
The purchase option is open both via our website and the Exchange Widget that can be found at our partners’ resources.
Well, Ethereum is just an altcoin, and it won’t probably be number one. However, Ethereum and its developers made the revolution in the cryptocurrency field. First of all, Ethereum always sees its problems and will address them in the nearest future. Secondly, Ethereum was the first base platform for many developers, who created and promoted dApps, games, and other projects. Probably, Ethereum is undervalued, and it is really worth buying and mining.
Ethereum has some serious advantages, which are immutability, security, absence of downtime, and the ability to be corrupt proof. Ethereum is a blockchain pandora’s box with almost unlimited possibilities for use, thanks to its flexibility, power, and versatility.
The Ethereum potential is enormous, as well as the platform’s one. The platform is predicted by experts to be able to change the direction vector of the Internet from the Internet repository of information to the Internet of values, where people can exchange values instantly without using the services of intermediaries.
Disclaimer: This article about Ethereum (ETH) should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements.
Any investor should research multiple viewpoints and be familiar with all local regulations before committing to an investment.