In recent years, cryptocurrencies have been listed as a tradable digital asset or a form of virtual money and their foundations have been built on “Blockchain” technology that only exists online. Cryptocurrencies do not exist in physical form (such as fiat money), nor are they usually issued by a central authority, such as government or banks, to support or maintain it. Cryptocurrencies use “cryptography” to authenticate and protect transactions, hence the name. There are currently more than a thousand cryptocurrencies in the world.
What is Ethereum?
It is the second largest cryptocurrency in terms of market capitalization after Bitcoin, with nearly $ 420 billion. It is a decentralized IT platform that can execute a range of applications, decentralized finance or “DeFi” services and release new crypto assets.
In other words, Ethereum is one of the blockchain technologies that embraces digital money and global payments, empowering Ether cryptocurrency (ETH) and thousands of decentralized applications as companies embrace thriving digital economies and bold new ways for creators to make money online.
How did you start?
Ethereum was designed in 2013 by then-19-year-old programmer Vitalik Buterin, along with a team of other founders such as Gavin Wood, Charles Hoskinson and others, and in 2014 the development of the Ethereum protocol began with extensive funding and sales from $ 18. million in arguments. . Until the first public version of the Ethereum blockchain was launched on July 30, 2015, the smart contract feature began to appear.
How does it work?
Today, anyone with a powerful GPU can mine Ethereum on their computer, but it may not be as lucrative as Bitcoin given the stiff competition among digital miners. The Ethereum mine is planned to be phased out in 2022 in favor of a technology called Stock Testing through a global network of certifiers.
Ethereum technology allows anyone to deploy permanent, immutable decentralized applications on them, and users can interact with them. Decentralized Finance (DEFI) applications offer a wide range of financial services without the need for typical financial intermediaries such as brokers, exchanges or banks, and allow cryptocurrency users to borrow against their holdings or lend to gain interest. . Ethereum also allows users to create and exchange “NFTs”, which are non-interchangeable tokens linked to digital artwork or other real-world items and exchanged as a variety of digital property.
Why does its price fluctuate?
Ethereum is acquired by setting up an account at a cryptocurrency exchange or other reputable financial technology company. Like other cryptocurrencies, the price of Ether depends on the global market for supply and demand. Price may be volatile in the short run as demand exceeds supply and vice versa. However, in the long run, the currency has historically outperformed many other traditional investments, such as major stock and bond indices. The value of an Ethereum coin today is around $ 3,475.