The Ethereum blockchain technology is public distributed platform featuring scripting smart contract functionality. Ethereum provides the cryptocurrency token named “ether,” henceforth, stored in Ethereum wallet. Ether is a component or fuel for operating the distributed Ethereum application platform. It is a mode of payment used to pay for transactions and services done by application developers on the Ethereum platform.
Introduction to Ethereum
Vitalik Buterin, a cryptocurrency programmer, and researcher involved with Bitcoin created Ethereum in 2013. Eventually, funded by online crowd sale during its development on July – August of 2014 and made alive on July 30, 2015. To develop distributed applications, Buterin had made a case of Bitcoin needing a scripting language for application advancement. Failing to get that, he proposed creating a new platform with a more general scripting language. In a public announcement in January 2014, the Ethereum’s core team members were Vitalik Buterin, Charles Hoskinson, Anthony Di Iorio, and Mihai Alisie.
Ethereum technology is a decentralized platform application that runs on a worldwide, peer-to-peer networking with no need of administrators. Ethereum is an open software platform based on a blockchain technology through which developers build and deploy decentralized applications. Its core innovation called Ethereum Virtual Machine (EVM), is a decentralized Turing complete software that runs on the Ethereum network that can execute scripts using an international network of public nodes. These make the procedure of creating blockchain applications easier and better than ever.
Ether, the value token of the Ethereum blockchain, a digital currency used for operating smart contracts listed as ETH and traded on cryptocurrency exchanges. Ethereum network and Ether token, such as Bitcoin, are not by any means controlled or issued by any bank or government, but instead, an open network managed by its users.
Investing in Ethereum Blockchain Technology
Ethereum is one of the most promising decentralized platform technology investment in the market today. Since its public announcement in 2016, this digital cryptocurrency has grown by over 1,100%. Arguably, the second-most popular cryptocurrency next to Bitcoin based on market capitalization. And it is quickly demonstrating why it is one of the most profitable investments, more than all others have ever been. At the current growth rate, Ethereum price could expect a rise of as much as $500 in the near future. Ethereum has about 35,000 developers worldwide in addition to more than 500 start-ups developing on its platform.
Today, many industries continue to enthusiastically explore blockchain platforms resulting to becoming the de facto leader. Consequently, several major banking institutions are now using Ethereum technology as a platform for their financial transactions. Microsoft for one is tying its Bletchley platform on this technology as the foundational blockchain component. Many businesses, both privately and or publicly, continues to contribute to the development of Ethereum. Accordingly, still, others are helping the promising, infant-age code base technology reach maturity.
Top 3 Reasons Why Buying Ethereum is a Good Investment:
1. Ethereum had more applications than any bitcoin
2. Fortune 500 companies ably backed Ethereum blockchain
3. Financial institutions integrate Ethereum blockchain
Although, Ethereum is a distributed public blockchain much like Bitcoin, there are some very noteworthy technical differences between the two. To note, the most important distinguishing characteristic is that, both differ substantially in capability and purpose. Bitcoin blockchain is for tracking ownership of digital currency, while Ethereum’s focal point is running the coding program of every decentralized application.
Unlike other cryptocurrencies where miners mine for bitcoin, in Ethereum mining, miners work to earn Ether tokens. In simple terms, mining Ether equals acquiring the network which sequentially guarantees verified computation. Tokens are unpredictable at times, for instance, like the fall of ether’s from $21.50 to $8 after The DAO hacking. Surprisingly since that hacked, Ethereum value rises to more than $400, a 5,000% increase since the beginning of the year.
Ethereum blockchain is fast-moving forward and looking ahead to a bright future. It provides people a user-friendly platform to exploit the tremendous power of blockchain technology. Moreover, with this technology, Ethereum is stepping up the decentralization process of the world’s economy. That is to say, notwithstanding the consequences from The DAO hack.
Ethereum is perhaps a risky investment, but then it could potentially be a lucrative investment. Companies are actually using Ethereum as a building block – something more akin to precious metals in the market, such as diamonds than gold. As a venture capitalist, this is really a potential win.
Nonetheless, Ether is still an Internet currency, so proceed your investment with caution.
SAY CHEESE! My name is Mike and I love technology, software, and crypto. I grew up around my ‘nerdy’ engineering parents who’ve worked for high tech start-ups and aerospace companies. They’ve taught me everything I know, from destructing the latest phones to playing around with drones, writing lines of code and investing in cryptocurrencies. I take things apart, put them back together and add some (code). I breathe and live tech and can’t wait to teach you more!