Ethereum is a decentralized, open-source blockchain featuring smart contract functionality. Ether is the native cryptocurrency of the platform. It is the 2nd largest cryptocurrency by market capitalization, after Bitcoin. Ethereum is the most actively used blockchain. Ethereum uses Keccak-256 Algorithm, even though it is often called SHA-3 in the code.
Initial Release Date: July 30, 2015
Written in: Solidity
Software Used: EVM 1 Bytecode
Original Author(s): Vitalik Buterin, Gavin Wood
Ethereum Usage and its Importance
Ethereum is not a cryptocurrency it’s a platform for creating decentralized products. Ether is the cryptocurrency that powers the Ethereum platform and blockchain.
Most people don’t know that Ethereum has hundreds of applications beyond holding and trading, including online purchases. So, which online stores allow you to pay with Ethereum? Nowadays, you can buy just about everything you want using cryptocurrencies that is, as long as you know where to look! Through PayPal now you can buy different cryptocurrencies including Ethereum.
Ethereum Supply Limit
Unlike Bitcoin which has its supply capped at 21 million, Ethereum has opted not to set an upper limit on its total coin supply.
Is Ethereum a good investment?
Ethereum is a decentralized, open source blockchain network that enables users to connect with 1 another using reliable, tamper-proof smart contracts. Most investors believe that the only way to make money using Ethereum is by purchasing the Ethereum token and waiting for it to increase in value over time. But if you’re a long-term investor who won’t lose sight over short-term losses, Ethereum may be a good investment for you.
What does Ethereum 2.0 mean for Ethereum?
Ethereum 2.0, also known as Eth2 or “Serenity”, is an upgrade to the Ethereum blockchain. The upgrade aims to enhance the speed, efficiency, and scalability of the Ethereum network so that it can process more transactions and ease bottlenecks.
Ethereum 2.0 (also known as Serenity) is designed to be launched in three phases:
- Phase 0: Was launched on 1 December 2020 and created the Beacon Chain, a proof of stake (PoS) blockchain that will act as the central coordination and consensus hub of Ethereum 2.0.
- Phase 1: Will create shard chains and connect them to the Beacon Chain.
- Phase 2: Will implement state execution in the shard chains with the current Ethereum 1.0 chain expected to become one of the shards of Ethereum 2.0.
The Bottom Line
Investing in Ethereum has just about always been worth it, except for those who bought the top of the bubble. Even then, if they hold on long enough, however, they will eventually be in profit. But they are an example as to why trading is the best method. Ethereum investing is smart if you are careful with how much you invest, employ strict risk management strategies, and trade instead of hold, you can make a lot of money.