Ethereum (ETH) currently has a price of $2.2K and is up 2.83% over the last 24 hours. The cryptocurrency is ranked 2 with a market cap of $260.3B. Over the last 24 hours, it saw $15.7B of trading volume. The token has a circulating supply of 120.2M tokens out of a total supply of 120.2M tokens.
Ethereum (ETH) is a decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications, providing them with a secure and scalable infrastructure. It operates on its native cryptocurrency called ether, used by participants to transact and incentivize network operations.
Ethereum stands out for its ability to support smart contracts, which are written into code and stored on the Ethereum blockchain. These contracts eliminate the need for intermediaries or third parties, as pre-defined actions are carried out when they are triggered. This sets Ethereum apart from other cryptocurrencies and traditional financial systems. Smart contracts on Ethereum have diverse applications, automating processes like financial transactions, supply chain management, and voting systems. For instance, a rental agreement stored as a smart contract could transfer payment from a tenant to a landlord on the specified due date, without manual intervention or reliance on a trusted third party.
The execution of smart contracts on Ethereum brings transparency and immutability to the network. Once deployed, these contracts cannot be altered or tampered with due to the decentralized nature of the blockchain. This ensures that the agreed-upon terms and conditions are followed without any potential for manipulation or fraud. Since the contract is visible to all participants on the Ethereum network, it promotes transparency and trust, allowing independent verification of the contract's execution and outcome. Ethereum's smart contract feature revolutionizes the way agreements and transactions are conducted, eliminating intermediaries, automating processes, and ensuring transparency and immutability. This functionality opens up a world of possibilities for decentralized applications and contributes to a more efficient and secure financial system.
Ethereum is a cryptocurrency that offers a unique feature — the ability to support decentralized applications (dapps). Unlike traditional applications that rely on a central server, dapps operate on a network of computers, ensuring that no single entity has control. This decentralization makes them resistant to censorship and manipulation. Developers can leverage Ethereum's blockchain technology to create smart contracts for dapps. These contracts automatically execute transactions when specific conditions are met, ensuring trust and transparency. By being stored and executed across multiple computers, intermediaries are eliminated, reducing costs and increasing efficiency. The potential of Ethereum's dapp ecosystem extends beyond financial applications. It opens up possibilities for decentralized social media platforms, gaming applications, and more. This fosters innovation and interaction, creating new opportunities in various industries. Ethereum's support for decentralized applications empowers users by giving them control over their data and transactions. It promotes transparency and efficiency, while also enabling censorship-resistant applications that facilitate global collaboration.
Ether serves as a means to pay for transaction fees and resources required for smart contract execution. This approach ensures that users initiating transactions cover the associated fees, while also deterring network abuse and spam attacks. By mandating payment in ether, Ethereum promotes responsible and efficient use of the platform, thereby maintaining its security and scalability over time. Beyond being a medium of exchange, Ether holds significant importance within the Ethereum ecosystem. It acts as a store of value and facilitates the creation and execution of decentralized applications and smart contracts. Ether serves as collateral for these applications, guaranteeing trust and security. Ether is also burned during transactions as part of the fee system.
The Ethereum blockchain relies on the Ethereum Virtual Machine (EVM) as a crucial component. The EVM is a decentralized virtual machine that operates within the Ethereum blockchain. Its main purpose is to enable the execution of smart contracts. These smart contracts are written in Solidity, Ethereum's programming language, and are stored on the blockchain, ensuring their immutability and transparency. The EVM ensures a secure and reliable environment for executing smart contracts. It achieves this by eliminating the possibility of external interference or censorship, ensuring that the code within the smart contract is executed exactly as intended. This is made possible through the consensus mechanism of the Ethereum network, which requires multiple nodes to agree on the validity of each transaction and smart contract execution.
Ethereum uses a proof-of-stake consensus mechanism. In Ethereum's algorithm, validators are selected based on the number of coins they hold and are willing to lock up as collateral. The more coins a staker possesses, the higher their chances of being chosen to create a new block.
One of the notable advantages of Ethereum's algorithm is its energy efficiency compared to proof of work. In proof of work, miners need to expend substantial computational power to solve complex mathematical problems. However, proof-of-stake validators do not compete in such puzzles, resulting in lower energy consumption. This makes Ethereum's algorithm more sustainable and environmentally friendly.
Ethereum was created in 2013 by a group of programmers and developers led by Vitalik Buterin. Buterin, who is widely regarded as one of the most influential figures in the blockchain industry, conceptualized Ethereum as a decentralized platform that would expand the capabilities of blockchain technology beyond simple financial transactions. The team behind Ethereum wanted to create a platform where developers could build and deploy smart contracts and decentralized applications easily. They aimed to provide a secure and scalable infrastructure that would revolutionize various industries by enabling trustless and transparent transactions.
The programmers included Mihai Alisie, a Bitcoin Magazine co-founder, Anthony Di Iorio, a cryptocurrency entrepreneur and Charles Hoskinson, who would later go on to create Cardano. Gavin Wood, a British programmer, co-founded the project and contributed to the design and implementation of its smart contract language, Solidity. Joseph Lubin, an American entrepreneur, co-founded Ethereum and went on to establish ConsenSys, a blockchain software technology company that focuses on building decentralized applications.
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