Table of Content


Overview

Ethereum blockchain is the creation of young prodigy Vitalik Buterin, who is a Russian-Canadian programmer that created the platform and the cryptocurrency in 2015. While Ethereum was Buterin’s idea, the platform has other co-founders too, who helped finance the project and develop it. According to its founders, Ethereum can be used to “codify, decentralize, secure, and trade just about anything.”


Ethereum’s Coin, Ether

The Ethereum blockchain-based platform is an open-source, public, platform that allows developers to create decentralized applications.  Most applications rely on servers of large corporations such as Apple and Google. Hence, these third parties can decide whether or not to have certain applications in their app stores. Ethereum’s mission is the opposite – anybody can use this decentralized network, and no permission from third parties is required. Ethereum is not controlled by its founders – it’s run by the community of its users. The platform’s vision is to create a “World Computer”. It will be a vast network of private computers that run applications without third parties. These decentralized applications are also known as DApps.

Decentralization is valuable – it means that personal data is no longer stored in servers of large corporations and cannot be abused (sold, distributed, etc.). It also means that no one can be excluded from using Ethereum applications, no matter your country or background. The future of Ethereum would be a concept a bit difficult for us to understand, but quite revolutionary – it could create P2P Marketplaces where shoppers could buy directly from sellers – this would reduce commissions and processing fees excessively.

According to Ethereum Today, the price of Ethereum on October 21st, 2021 is  $4,201.56, with a 24-hour trading volume of  $26,861,066,073. In the last 24 hours, Ethereum rose by 4.6%, with a live market cap of $496,465,838,313. It has a circulating supply of 118,014,762 ETH coins and no maximum supply.

Our ETH to USD pricing is updated in real-time.


How Many Ether (ETH) Coins Exist?

There were about 112 million ETH tokens in circulation in August 2020, 72 million issued in the genesis block, the first block on the Ethereum blockchain network. Of the 72 million, 60 million were awarded to the project’s original donors in the 2014 crowd sale, while 12 million were donated to the development fund.

The remaining funds have been distributed to Ethereum network miners in the form of block rewards. The initial block reward in 2015 was 5 ETH, which was reduced to 3 ETH in late 2017 and subsequently to 2 ETH in early 2019. An Ethereum block takes around 13-15 seconds to mine on average.

One of the critical distinctions between the economics of Bitcoin and Ethereum is that the latter is not deflationary, i.e., its total supply is not restricted. The creators of Ethereum explain this by stating that they do not want the network to have a “set security budget.” The ability to modify the ETH issuance rate through consensus enables the network to maintain the minimum issuance required for acceptable security.


BTC or ETH?

Ether and Bitcoin have other differences, too, such as:

  • Bitcoin uses a UTXO system, while Ethereum uses an accounting system where values in Wei are debited from accounts and credited to another.
  • Block time is only 15 seconds, while for Bitcoin, it’s 10 minutes.
  • News coins of Ethereum are mined at a consistent rate, while for Bitcoin, the rates halve every four years.

In 2016, $50 million worth of Ether was stolen, which prompted the founders to split the cryptocurrency into two separate blockchains: Ethereum and Ethereum Classic. The Ethereum was upgraded from the original currency to protect the currency from further malware attacks.


What Makes Ethereum Different?

Ethereum was the first to introduce the idea of a blockchain smart contract platform. Smart contracts are computer programs that automatically carry out the activities required to fulfill an agreement reached between several parties via the internet. They were created to eliminate the need for trusted intermediaries between contractors, lowering transaction costs while improving transaction dependability. The main innovation of Ethereum was the creation of a platform that enabled it to execute smart contracts using the blockchain. That strengthens the previously existing advantages of smart contract technology. According to co-founder Gavin Wood, Ethereum’s blockchain was intended as a kind of “one computer for the whole world”. Theoretically capable of making any software more resilient, censorship-resistant, and less prone to fraud by operating it on a globally dispersed network of public nodes.

Through the usage of the ERC-20 compatibility standard, Ethereum’s blockchain may house additional cryptocurrencies known as “tokens” in addition to smart contracts. Indeed, this has been the most popular application of the ETH platform so far, with over 280,000 ERC-20-compliant tokens issued to date. Over 40 of them, including USDT, LINK, and BNB, are among the top-100 cryptocurrencies in terms of market capitalization. Since the introduction of Play2Earn games, there has been a rise in interest in the ETH to PHP exchange rate.


What affects Ethereum?

Unlike other traditional cryptocurrencies, Ether’s price is not as volatile or subject to geopolitical facts. Instead, it is influenced by other things, such as:

Negative media coverage – when a rumor broke out that Vitalik Buterin passed away, the price of Ethereum fluctuated enormously. The same happened during security lapses and hacks.

Availability – since there is not a limited supply of Ether, the changes of supply in its units may cause the price to alter.

Market manipulation – whales and bulls, similarly to other cryptocurrencies, can affect the price of Ether.

Government regulation – since governments are still adapting to cryptocurrencies, certain regulations care to either spike up or lower the prices.

Ether is currently the second-largest digital currency on the market. Most traders are currently choosing to purchase the currency and hold it for a certain period to speculate its growth.  Ethereum’s platform is truly a universal shift towards how we use the internet. Ethereum is still early in its development. But its innovation is the reflection of how different techniques could be in the future. Thus shaping and changing society along with it.


How Secure Is the Ethereum Network?

As of August 2020, Ethereum is secured by the Ethash proof-of-work algorithm. Which belongs to the Keccak family of hash functions.

However, there are plans to migrate the network to a proof-of-stake algorithm in conjunction with the significant 2.0 upgrade. This is scheduled to debut in late 2020.

Staking on the Ethereum 2.0 network became available when the Ethereum 2.0 Beacon Chain (Phase 0) went online in early December 2020. An Ethereum stake occurs when you deposit ETH (as a validator) on Ethereum 2.0 by sending it to a deposit contract. Thereby serving as a miner and safeguarding the network. The Ethereum stake price, or the daily amount of mon by Ethereum validators, is about 0.00403 ETH each day. in other words $2.36 at the time of writing in mid-December 2020. This figure will fluctuate as the network grows and the number of stakers (validators) increases.

A distribution curve (the participation and average percent of stakers) determines Ethereum staking incentives. Certain ETH 2.0 staking payouts are 20% for early stakers but will be reduced to between 4.5%-7% yearly.

An Ethereum stake requires a minimum of 32 ETH. If you choose to stake in Ethereum 2.0, your stake will be tied up on the network for months. Until the Ethereum 2.0 upgrade is finished.


Where Can I Purchase Ether (ETH)?

Ethereum is the second-largest cryptocurrency after Bitcoin. Therefore, it is feasible to purchase Ethereum or utilize ETH trading pairs on almost all major cryptocurrency exchanges. The best exchanges for trading right now are Binance, FTX, OKEx, CoinTiger, and Huobi Global.