Before Investing in Cryptocurrency there are things you need to have in consideration. To be a Successful Investor, you need to know what is the project, what are its goals, and what are the expectations for the Future.
This article is suitable for both Beginners and Investors that want to consolidate their knowledge.
We will go through different topics to understand what is Ethereum and its different characteristics.
We will briefly talk about:
2. The coin of Ethereum, Ether (ETH)
4. DEFI & NFT
5. Who are the Founders. Ethereum Foundation
What is Ethereum?
After Bitcoin, Ethereum is the largest Cryptocurrency on the Market.
Ethereum is a marketplace of financial services which was also created to enable developers to build and publish Smart Contracts.
You may ask what a Smart Contract is.
We will get deeper into it in future articles.
For now, shortly, a Smart Contract is a self-executing computer program with the terms of the buyer’s and seller’s, distributed across Decentralized Blockchain.
Ethereum is a technology that lets you send cryptocurrency to anyone for a fee. This fee is known as GAS.
It refers to the Fee required to conduct a transaction on the Ethereum Blockchain.
The price of the gas is determined by supply and demand.
It also powers applications that everyone can use and no one can takedown. This is one of the benefits of Cryptocurrencies.
In general, this is what defines Ethereum.
The coin of Ethereum
The coin of Ethereum is Ether (ETH).
It is similar to Bitcoin, and is very different from traditional Money.
Some features of Ether are that it does not need third parties and is secured by cryptography.
You can send Ether without any intermediary, such as banks.
This is one of the major advantages of Ether and Crypto, compared to Fiat Currencies.
Ethereum’s Evolution
Let us shortly talk about Ethereum Evolution.
Ether was first created to be a medium of payment for apps (DAPPS) built on its platform.
In 2016 a malicious malware stole more than $50 Million Dollars worth of Ether, which had been raised for a project called DAO ( Decentralized Autonomous Organization).
DAO is a community without centralized leadership.
After this the Ethereum community has created a hard fork, invalidating the existing Blockchain.
This Blockchain is called Ethereum Classic.
Is very important to know as well what are the types of consensus mechanisms Ethereum uses.
Ethereum uses Proof of Work and Proof of Stake, Ethereum 2.0.
The Proof of Stake is done by validators who staked Ether to participate in the System.
A validator is chosen to create new blocks share them with the network and earn rewards.
Unlike Bitcoin, there is no limit to the number of Ether that can be created.
DEFI & NFT
DEFI will change the world of Finance.
Defi aims to recreate traditional financial systems (such as banks), exchanges without a central service that controls the entire system.
Defi is based on open-source technology.
With Defi, the markets are always open and there are no centralized authorities who can block payments or deny other services.
Another asset that we can find in the Ethereum blockchain is the NFT (Non-Fungible Tokens).
To put it simply, NFTs are tokens used to represent ownership of unique items. You can tokenize things like art and real state, just to name a few.
Who are the Founders?
Ethereum has a total of eight co-founders. Although the most known is Vitalik Buterin.
Buterin is the author of the original White Paper of Ethereum in 2013.
The others founders are Gavin Wood, Anthony Di Iorio, Charles Hoskinson, Mihai Alisie, Joseph Lubin, and Amir Chetrit.
What is the Etherum Foundation?
The Ethereum Foundation is a non-profit entity that dedicates efforts to maximize the development of Ethereum as a technology and community.
The Ethereum Foundation is part of the Ethereum ecosystem.
Its role is to dedicate efforts to promote the adoptions, development and solutions on Ethereum.
Social Media & Economics
It is always important before investing in a crypto project to know the social media and its communities.
You can start to look through these social media and communities:
To finish, we will go through the Crypto Economics.
Ethereum has a market cap dominance of 17.92% in the crypto market.
Also, Ethereum has surpassed the number of active addresses than bitcoin.
You can see more details such as volume, fees, market cap, and so on.
Another piece of information that is important for you as an Investor is the TOP Influencers of the Coin.
We hope this helped you to understand What is Ethereum!
If you have any questions feel free to contact us or write in the comments!
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