Ethereum (ETH) – What Is It? How and Where to Buy?

Ethereum

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Project Name: Ethereum (ETH)

Website: Official

ETH Whitepaper: Official Documents

Maximum Supply: ∞ ETH

Founding Year: 2015

Market Cap: $193,450,607,113

Total Supply: 120,000,000 ETH

Supported Blockchain Networks: Ethereum (ETH) operates on its own ETH network and can integrate with all blockchain networks.

Exchanges Where It Can Be Purchased: Ethereum (ETH) is traded on numerous cryptocurrency exchanges worldwide. Some prominent exchanges include: Binance, MEXC, KuCoin, HTX, Gate.io and many other cryptocurrency exchanges.

Satoshi Nakamoto’s development of Bitcoin in 2009 was considered a revolutionary step in the financial world, marking the first example of a decentralized digital asset. Following Bitcoin’s success, a series of cryptocurrencies emerged based on blockchain technology. Ethereum ranks second in market capitalization among cryptocurrencies, prompting many to seek more information about Ethereum. In this article, we will delve into Ethereum in detail. If you’re ready, let’s get started!

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What is Ethereum (ETH)?

Ethereum (ETH) is the digital currency of the Ethereum ecosystem. Ethereum offers an open-source blockchain technology that anyone can use. What sets Ethereum apart is its integration of new technologies such as smart contracts, decentralized applications (dApps), and the Ethereum Virtual Machine (EVM).

Ethereum is sometimes referred to as the “world computer” because of its versatility. Being a programmable platform enables people to create their own blockchain projects and provides full control without the need for intermediaries. Currently, Ethereum is the second-largest cryptocurrency globally.

Ethereum uses a blockchain like Bitcoin but differs in operational aspects. Ethereum functions as a sort of universal computer in the digital realm. Here’s a simple explanation of how Ethereum operates:

• Blockchain Ledger: Ethereum functions like a ledger or record book that records all transactions, but it includes more than just transaction history of other cryptocurrencies.
• Global Computer: Ethereum relies on thousands of computers coming together to operate like a massive computer. Each computer works to secure the Ethereum network and verify transactions.
• Various Applications: Ethereum provides developers the freedom to create various applications, ranging from financial transactions to gaming and beyond. For example, DeFi applications automate financial transactions like lending and trading.
• Ether (ETH): Ethereum uses a cryptocurrency called Ether to operate the network and pay transaction fees. This finances the network’s operations and ensures transaction security.
• Smart Contracts: Ethereum is used to execute pieces of code called smart contracts, which automate the fulfillment of predetermined conditions.
• Gas Fees: When conducting transactions on the Ethereum network, a fee known as “gas” must be paid. This fee varies based on the network’s transaction volume.

Ethereum continues to evolve, with Ethereum 2.0 aiming to enhance network efficiency. This upgrade will make the network faster and more efficient. Ethereum is the wizard of the digital world, offering a wide range of applications.

Who are the Founders?

Ethereum was initiated by 8 talented developers and entrepreneurs. The standout figure behind the project is Vitalik Buterin. Vitalik authored the white paper laying the foundation for Ethereum when he was just 19 years old in 2014, with his interest in the crypto world dating back to 2011.

Gavin Wood is another significant figure who played a crucial role in the development of Ethereum in the field of computer science. He is also recognized as the creator of Polkadot, a decentralized network that connects different blockchains.

Among other founders are names with investment and experience in the sector: Anthony Di Iorio, Charles Hoskinson, Mihai Alisie, Joseph Lubin, Amir Chetrit, and Jeffrey Wilcke.

Prior to its official launch, Ethereum conducted a successful Initial Coin Offering (ICO) in 2014. Ethereum’s initial price was around $0.3, and it was officially released on July 30, 2015.

Over the years, Ethereum has become globally accessible through numerous innovations. However, Ethereum’s price has been highly volatile in recent years. It experienced a major increase in 2021, reaching its all-time high of $4,891 on November 16, 2021.

Ethereum is a significant player in the crypto market and could be subject to financial regulations worldwide. Additionally, the crypto market crash in 2022 also impacted Ethereum.

ETH Coin Analysis

ETH Coin stands out with its notable features:

• Smart Contracts: Enables automated, trustless agreements powering DeFi and NFTs.
• EVM Compatibility: Standard for dApps, with 80%+ of DeFi TVL on Ethereum.
• Proof-of-Stake: Post-Merge (2022), energy-efficient with staking yields ~4%.
• Layer 2 Scaling: Rollups like Optimism reduce fees while maintaining security.
• Market Volatility: ATH $4,891 in 2021; current ~$1,610, resilient but sensitive to macro events.

ETH Coin | Purpose – Advantages

The purpose of Ethereum is to serve as a global platform for decentralized applications and smart contracts. Here are its advantages:

• Programmability: Build complex dApps beyond simple payments.
• Interoperability: Bridges to other chains like Polygon, Arbitrum.
• Security: Largest developer community audits code rigorously.
• Ecosystem Dominance: Hosts 4,000+ dApps, $50B+ DeFi TVL.
• Upgrades: Dencun (2024) and Prague enhance scalability and fees.

Basic Use Cases

ETH token offers versatile functions within the platform:

• Gas Fees: Pay for transactions and smart contract executions.
• Staking: Lock ETH to secure the network and earn rewards.
• DeFi: Lend/borrow/trade in protocols like Uniswap, Aave.
• NFTs: Mint, trade, and own digital assets on OpenSea.
• Trading: Buy/sell ETH on exchanges like Binance or Coinbase.

ETH Coin Investment Evaluation

Ethereum’s foundational role in Web3, with $193B market cap and PoS transition, positions it as a blue-chip asset. High gas fees pre-L2s posed challenges, but upgrades mitigate this. Ideal for long-term holders in DeFi/NFTs, though competition from Solana/Base risks share. Strong network effects favor upside.

Future of ETH Coin

Ethereum’s roadmap includes Verkle Trees and stateless clients for better UX. With ETF approvals (2024) and L2 growth, 2025 forecasts $3,000-$5,000 if bull market resumes. Institutional adoption and sharding could drive scarcity via burns, but regulatory scrutiny looms.

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