What is Ethereum?
Ethereum is a decentralized computing platform that enables the creation of smart contracts and applications. It was founded by Vitalik Buterin and his team of developers in 2013 and launched in 2015.
The founders were able to utilize blockchain technology for different uses other than being a digital coin.
Its cryptocurrency is Ether (ETH) and Ethereum is its network. Ether is used to pay transaction fees on the blockchain.
Since ether had been launched, it has grown to be the second most popular cryptocurrency with a market capitalization of about 300 million dollars.
Its consensus mechanism is proof of work(PoW) which allows nodes to confirm every transaction inputed in the ledger.
What can you do with Ethereum?
- It allows developers to create decentralized applications and software. They are open source so anyone can contribute to the product.
- It’s used to create Decentralized autonomous organizations.
- Decentralized finance is solely based on Ethereum network. It has created more ways to profit from finance sector
- NFT’s is made possible using Ethereum network. It has given back power to creators enabling them to make money off their creations.
- Creation of stable coins to decrease volatility.
Future of Ethereum
With the various applications of this network, there’s still a void to fill in so Ethereum is making a software update.
It’s migrating to a new consensus mechanism known as “proof of stake” which has proven to be energy conservative and minor complex computations.
It’s expected to launch in the second quarter of 2022 (sometime around this period). If it launches successfully it’s going to improve scalability and security on the network.
There have been a lot of hypotheses on how this will affect the current prices and supply but it’s still not certain if there will be a fall in price.
That’s it for today’s article. I am sure you got value.
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