Ethereum has long been in the public eye, and for a good reason – throughout time, it has proved not only a valuable cryptocurrency but also a door opener for app development.
2023 is approaching at the speed of light, and people need certainty as regards the future of cryptocurrency, including buzzy ones like Bitcoin and Ethereum. Bitcoin is still the largest digital currency by market capitalization, followed by Ethereum, a platform that has surged in popularity even more since the Merge happened. The blockchain changed from a PoW to a PoS consensus, meaning more sustainability is at stake. Nonetheless, there are so many things that people still do not know about Ethereum and its native currency, ether (ETH), that it would be a bit too much to discuss the consensus governing the Ethereum blockchain today before clearing out some essential aspects of it.
Without further ado, here is everything you need to know about Ethereum at this moment, so keep reading!
Blockchain and Ethereum mining
Sure, you can find the Ethereum price by visiting a reputable exchange like Binance, but you can also mine it, and this is useful information if you are not familiar with the concept. As previously mentioned, Ethereum is a platform powered by an advanced technology called blockchain, but even innovative technologies like this need to be updated, and this is usually done through new transactions. With every new transaction on Ethereum, a new block is added to the chain. However, for this block to be successfully validated, a very complex cryptographic problem must be answered.
This is where miners come into play – they use mining rigs involving high-tech mining software and hardware to guess the cryptographic puzzle and, hence, earn ethers. Mining is a very advantageous practice as regards both parties – the platform and its users – but if you are about to try it, we advise you to take your research seriously. Mining involves some knowledge and inclination, so no one judges you if you simply buy your ethers and trade them for profit.
What is Ethereum?
First things first – many people have heard about Ethereum, but not all of them understand it. So, what is Ethereum, after all? It is a decentralised development platform based on blockchain technology. It was designed to let users develop tokens, digital currencies, applications such as dApps (decentralised applications), and other cases that take advantage of secured and distributed databases. It allows people to tokenise almost anything, from personal data and real estate to credentials and finances. Thanks to cryptography, the thing tokenised is safe and sound on the blockchain, so no one and nothing can alter it.
At its core, It is developed to act as a programmable, decentralized, secure, and scalable platform. The platform is famous for allowing people to design almost anything on it and benefit from blockchain technology, but did you know that this is possible due to the operating system running on the so-called “nodes” (machines) – hence the nickname Ethereum Virtual Machine? The primary purpose is to provide infrastructure to individuals everywhere and connect everyone through this virtual machine. Thereby, no single entity can access and control anyone’s personal information, the platform being thus less prone to shutdowns or cyberattacks.
ETH has a token developed to pay for the platform’s services, but users can also use it to purchase tangible goods if permitted. Ether (ETH) is the native currency on the Ethereum platform, and although it is not as valuable as BTC, it is still a promising asset that investors are seriously considering – and a considerable number of them already do so.
But apart from ethers, smart contracts are also brought up regarding Ethereum. What they are and what they do is nevertheless unclear for many people, so let us find out what it is all about.
Smart contracts can simply be called lines of codes encompassing the terms of the agreement between buyer and seller. They are used to validate and secure transactions on the blockchain so that users have nothing to worry about as regards their data and funds’ safety. Due to the advanced technology these contracts leverage, transactions are made based on the parties’ agreed-upon actions.
However, if a user wishes to run smart contracts and bring some changes to their applications, they pay a fee in ether, depending on the amount of computing power necessary in this sense. And as a matter of fact, ethers can be obtained by either buying or mining.
Latest developments and applications of Ethereum
As previously stated, ether is the currency powering the blockchain. It allows developers to design a new generation of tokens, the ETH-based ones, which power the so-called dApps by means of smart contracts. Ethereum’s smart contracts are undoubtedly a not-to-be-ignored innovation, but there is much more about this platform. NFTs (non-fungible tokens) are nothing new under the sun, but they are definitely the ultimate development as regards Ethereum. NFTs are digital blockchain assets pretty distinct from cryptocurrencies, as they imply a unique identification code and metadata.
These tokens ensure ownership of unique items such as real estate, digital art, in-game items like land or avatars, domain names, (non-)digital collectables, and even event tickets. It is much more exciting for users to buy such special assets and know no one can ever possess the same token as theirs. An interesting peculiarity of an NFT is that its unique code does not allow for any potential copies. As for Ethereum applications, some of the most prominent ones include DeFi (Decentralized Finance), storing data, health applications, and digital identity, but the spectrum extends to DAOs (Decentralized Autonomous Organizations), gaming, marketing, and many more.
Is Ethereum a good investment?
Although price advances on Ethereum are hard to predict, the current status of the blockchain and its many case uses make it a promising investment. Not to mention that Ethereum 2.0 is a door opener for more sustainable transaction processing and ETH mining. Plus, smart contracts are a real-world utility. Simply put, ETH is here to stay, and if you are serious about your investment, you only have to win.