ETH remains in a bearish zone as it trades below the $1,150 support area at press time. The largest altcoin …
Ethereum is a decentralized blockchain platform that establishes a peer-to-peer network that securely executes and verifies application code, known as smart contracts.
Smart contracts allow participants to transact with each other without the need for supervision by a large central authority. Transaction records are immutable (unchangeable), verifiable, and securely distributed across the internet, giving participants full ownership and visibility of transaction data.
Transactions are sent and received by user-created Ethereum accounts. Senders must sign transactions and use Ether (ETH), the native cryptocurrency of Ethereum, as the cost of processing transactions on the network.
History of Ethereum
In November 2013, Vitalik first shared a whitepaper outlining Ethereum. Vitalik Buterin is a young programmer, deeply passionate about Bitcoin, so he proposed a solution to improve the Mastercoin project, but the proposal was not applied, so he researched and completed the Whitepaper by himself.
In the summer of 2014, Vitalik’s partner Gavin Wood announced the Yellowpaper for Ethereum and Vitalik confirmed Ethereum would be further developed by the Ethereum Foundation.
In June 2015 a first block of Ethereum was successfully mined, marking the official formation of the Ethereum Blockchain.
After a year of activity Ethereum crashes Hard Fork Ethereum and The DAO Hack. That has resulted in the division of Ethereum into two, Ethereum and Ethereum Classic.
How ETH Works
Ethereum works by a network of computers called Nodes, to participate in this network, Nodes must install the Ethereum Client software. After installation, Nodes will run the Ethereum Virtual Machine – EVM virtual program.
EVM is responsible for executing smart contracts, when developers want to build DApps on Ethereum, they have to mine contracts through Solidity programming language.
The EVM virtual machine executes operations such as transaction orders, smart contracts. The network requires a fee called Gas – fees paid in a digital currency called Ether (ETH).
When the transaction is executed, Miner Nodes will confirm whether the transaction is valid or not. Ethereum uses a Proof Of Word (PoW) mechanism for Miner Nodes to prove their work is done and notify the entire network. Then other Miner Nodes will confirm whether the proof is valid or not.
The new block is generated by decrypting with Ethash algorithm, then confirming the transaction network when PoW is approved, the transaction data is written to the Ethereum Blockchain and cannot be changed.
Ethereum Token Network Deployment Rules
ERC20: Is a list of general rules and regulations for the issuance of tokens on Ethereum, first proposed in June 2015, to help developers have a common standard, effectively deploying Fungible tokens.
ERC721: A set of standards for the issuance of NFTs – Non-Fungible Tokens on Ethereum proposed in January 2018. Accordingly, one NFT cannot be exchanged, replaced by another NFT. Thanks to ERC721, the Ethereum developer has built a new ecosystem of Crypto Kitties – DApps that raise cats on Ethereum.
ERC777 standard – improve ERC20 issues.
ERC1155 – the standard for tokens including Non-Fungible and Fungible.
Compare Bitcoin and ETH
BTC (Bitcoin) and ETH (Ether) are one of the large-cap cryptocurrencies on the Crypto market today. Comparing the difference between these two currencies helps investors make more rational trading decisions.
Applications of ETH
ETH is currently very interested because of its application to the economy. According to a report by Jupiter Research, the implementation of Blockchain allows banks to receive savings with cross-border payment transactions soar to $27 billion by 2030, reducing costs by more than 11%.
Applying Blockchain technology to Ethereum for businesses, only authorized parties can exchange data, get transaction information and access records. Thereby improving the identification of customers, reducing risks in transactions, and automating processes related to trade finance.
Important Institutions of Ethereum
Ethereum Foundation: Non-profit organization responsible for developing the features of the Ethereum Blockchain platform. Established in 2014 and headquartered in Switzerland.
Enterprise Ethereum Alliance: The organization responsible for promoting and expanding the use of Ethereum blockchain technology for all businesses.
Consensys: The company has a high importance for Ethereum in particular and Crypto in general. This is the incubator for projects running on the platform of Ethereum.
Note when investing in ETH
Before investing in ETH, everyone should care about fees, security, safe transactions to avoid financial loss.
Types of fees and block rewards
As mentioned above, ETH is used to pay fees for transactions in the Ethereum network. This fee is paid to ETH miners, the total amount of transaction fees increases, which means an increase in transaction volume, which means more DApps develop on the Ethereum platform.
However, even though the fee increases sharply, it does not really affect the price of tens of billions of dollars in projects. The average daily fee in the Ethereum network reaches about 64 thousand USD, but the total value of ETH has reached 16 billion USD. Not to mention miners who choose to sell ETH to cover the cost of mining operations.
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