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ETH
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Ethereum
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About Ethereum

The price Ethereum today is 2,392.32 USD, and the trading volume in 24 hours - 16,830,669,013 USD. The crypto asset has grown by 4.42% over the day. Currently, the coin’s market capitalization is 279,649,766,990 USD, and has 116,894,570 coins in circulation with the max supply of 116,894,570 coins ETH.

What is Ethereum (ETH)?

Ethereum was created in 2014 by Vitalik Buterin. It is the second most capitalized cryptocurrency after Bitcoin, which also operates on an open source model with a decentralized network. Ethereum is mainly used to create smart contracts and decentralized applications. He is also behind the creation of so-called ERC-20 tokens, which allow other projects to launch their ICOS (initial coin offerings).

Thus, Vitalik Buterin is the main architect of the creation of Ethereum. He has been interested in Blockchain technology since the age of 17 and has been part of the cryptocurrency programming team since 2011.

Its main idea is to go beyond Bitcoin and develop a platform that allows something other than a simple cryptocurrency exchange. The Ethereum whitepaper was released back in 2013, and attracted the attention of members of the crypto community.

Being determined to implement his project, Vitalik Buterin participates in a crowdfunding campaign and managed to raise $ 18 million. Enticed by the project's goals, programmers joined the project, and the first version of Ethereum was released in 2015, initially under the name "Frontier".

In 2015, Ethereum quickly rose from a few cents to ten dollars. But then in 2016, this asset was subjected to a massive hack. The episode, known as the TheDAO hack, resulted in the theft of $ 50 million worth of ETH. After extensive debate about network security and rules, the Ethereum community split into two: Ethereum (ETH) and Ethereum Classic (ETC).

After that, the development continued. In 2017, Ethereum became a source of hype regarding ICOs (initial coin offerings). Then its price skyrocketed from $ 15 to $ 400. After a bubble in late 2017, ETH was worth almost $ 1,400 in early January 2018 before losing a lot of value, like all cryptocurrencies. In October 2019, the hype subsided, and development of ETH 2.0 resumed.

What is Ethereum 2.0.?

Ethereum 2.0 ("Serenity") is an update to the Ethereum network that improves the speed, efficiency, and scalability of the network. This will take Ethereum to new heights, as It will be able to significantly increase the number of transactions, reduce congestion and high gas costs on the network. Upon reaching the final upgrade phase, dubbed "phase 2", Ethereum will achieve its goals of becoming a transparent and open network for decentralized applications and Finance (DeFi).

Ethereum 2.0 includes segmentation to dramatically increase network bandwidth and reduce gas costs, making it cheaper to send Ethereum, tokens, and interact with smart contracts. There will also be fundamental economic changes - the transition from Proof-of-Work (PoW) consensus to Proof-of-Stake (PoS) and Shard Chains, which will allow you to support nodes for stacking and earn Ethereum as passive income. The Ethereum 2.0 update was completed in 3 separate stages:

  • Stage 0 - launch of the Beacon network, in which a simplified blockchain with share confirmation is launched in parallel with the existing system. This is done to facilitate the transition between the two types of validation concepts.
  • Stage 1-implementation of sharding. The blockchain will see its first processing units, which will provide parallel verification of transactions for the first time.
  • Stage 2-Launch of eWASM as the successor to EVM.

As each stage progresses, developers conduct thorough tests to ensure that the system is safe and stable. This will also give users time to adjust to the specifics of the new blockchain implementation. In many ways, Ethereum 2.0 is the combined effort of thousands of developers who have worked for years. 

The update was launched on December 1, 2020.

Ethereum is a project that meets a lot of needs and has a very large community around it. Many developments and changes are planned that should lead to an increase in the value of ETH in the future.

Summary

  • To own your crypto assets, you need to manage your own private keys.
  • Ledger hardware wallets make private key management easy and secure.
  • Each unique 24-word recovery phrase creates a new set of private keys.
  • Make sure you secure your 24-word recovery phrase properly.
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