The Rise of Ethereum
Introduction
As the digital world continues to develop in modern times, digital currencies (cryptocurrencies) have developed. Different usages of crypto have become more and more popular throughout the past years and had significant impacts on the financial world. Arguably, the second most famous cryptocurrency is Ethereum/Ether (ETH) (After Bitcoin (BTC). However, unlike Bitcoin, Ethereum is not just a cryptocurrency, but a decentralised platform that provides users the opportunity to create and run applications and smart contracts. Regarding the mysterious origin of Bitcoin, the emergence and development of Ethereum in late 2013 was more transparent progress toward publicity.
Chain 1: How and when did Ethereum start?
Unlike the enigmatic Bitcoin blockchain, the development of Ethereum was a more transparent progress for publicity. In November 2013, Vitalik Buterin first introduced the concept of Ethereum through a white paper, and the development of the platform has since been assisted by members with various capacities. Shortly after the white paper was published, Buterin initially brought his innovative project to publicity at a Bitcoin conference in Miami. As the co-founder of Bitcoin Magazine, he proposed expanding the pre-existing Bitcoin program into a more versatile and potent platform with more functions (Chain 4). Intending to follow his initial purposes, Buterin’s vision has been successfully realized. Now, Ethereum is a blockchain-based decentralized platform that also enables more powerful applications and more flexible programs to function.
Chain 2: What is Ether (ETH)?
Ethereum, as a decentralized development platform, has its cryptocurrency called Ether(ETH). The primary uses of Ether are for digital currency exchanges, making purchases, paying transaction fees on the Ethereum network, or being held as an investment. However, people are often confused with Ether and the platform itself. When people discuss the prices of Ethereum, they are most likely referring to Ether. Ether serves as fuel for the Ethereum platform and can be used as a payment method for goods and services. In some cases, Ether is also used for developing an application on the Ethereum network.
Just like any other currency, Ether can be purchased and exchanged using fiat currencies or other forms of cryptocurrencies. It is also possible to obtain ether through transfers from individuals or entities or by earning it as a miner, through a process called mining, which is adding a block of transactions to the blockchain network.
Chain 3: How did the prices of Ethereum/Ether develop?
The prices of Ether have been fluctuating ever since its inception. Nonetheless, as the platform gained popularity and attention, the prices of Ether began to rise. During 2021 the price of ether reached its all-time high of around 4,800$, driven by the hype on blockchain technology and growing interest in cryptocurrencies. However, Ether has experienced a significant drop in value, being under 100$ in 2018 due to the cryptocurrency market crash. Ever since then, the price of ether has seen some recovery, but it remains volatile and dependent on a range of factors including market sentiment, regulatory developments and technological advances in the cryptocurrency space. Here is an approximated overview of the prices of Ether since its emergence:
Chain 4: What makes Ethereum different?
In the past, the only decentralized network available was Bitcoin, but it had limited capabilities compared to Ethereum. Bitcoin uses a turing incomplete language, which restricts its ability to understand and execute a limited number of orders. In response to this, Ethereum was created with the feature of its own programming language called “Solidity”. Unlike the Bitcoin network, Ethereum can hold executable codes, enabling users to create more complex smart contracts and decentralized applications.
The time taken to confirm transactions also differs between the two networks, with Ethereum transactions taking just a few seconds and Bitcoin transactions taking a few minutes. This makes Ethereum arguably more efficient as a cryptocurrency. Additionally, their aims differ: Bitcoin was originally designed as an alternative to fiat currencies, while Ethereum was created as a platform to provide and construct decentralized applications created by users.
Conclusion:
In conclusion, the emergence of Ethereum in late 2013 marked a significant milestone in the development of cryptocurrency. With its own programming language and versatile capabilities, Ethereum has established itself as a platform for developing decentralized applications and executing smart contracts. Nonetheless, the use of the Ethereum platform continues to grow, with more users seeing its potential and investment opportunity. Overall, the development of Ethereum reinforces the importance of technological innovation in shaping the future of cryptocurrency and finance.
