What is Ethereum?
Ethereum is a cryptocurrency based on the blockchain technology originated from Bitcoin designed to implement not only monetary functions such as currency, but also provide a network for proposals and approvals of various contracts within the blockchain. In other words, the Ethereum network blockchain not only records payment of agreements between users, but also provides SNS functions, contracts, and various functions of applications, including but not limited to voting, currently implemented under the characteristics of the blockchain. The application that provides services of the five main characteristics of the blockchain: decentralization, anonymity, transparency, quickness, and irrevocability, is defined as the dApp (decentralized application).
Key Utilization of Ethereum
There are many examples of utilizing Ethereum’s generalized blockchain network, but the renowned use to the public is its function as a non-fungible token (NFT). Certain gaming companies were responsible for the ownership management of existing Internet assets such as Lineage’s execution sword and Son Heung-Min’s card on FIFA Online. Therefore, if the gaming company closes its business or an error occurs in the database, the existing owner will lose the ownership of the asset permanently. Ethereum networks are most commonly used to record the owners’ Internet assets on the decentralized, transparent, and irreversible blockchain networks.
Ethereum Company and Developer
Ethereum was developed by Vitalik Buterin in July 2015. In 2013, 19-year-old Vitalik Buterin wrote a white paper referring to the development of Ethereum to the Internet community, raising funds for development through ICOs, and launched the Ethereum service in 2015. Vitalik Buterin has one of the most significant influences in the global cryptocurrency and blockchain sectors, and is considered a figure who has made a huge contribution to the expansion of the cryptocurrency market for it to grow as much as it has.
Vitalik Buterin currently lives in Switzerland, with the Ethereum Foundation also headquartered in Switzerland. In particular, Vitalik Buterin’s remarks about cryptocurrencies have raised issues every year. He mentioned that the ideal state of Ethereum is to have independence that is not interfered by anyone, including countries, political groups, and companies through decentralization. Furthermore, he has mentioned that various cryptocurrencies have become the subject of speculation, which he has been very critical of.
What is Ethereum 2.0?
Ethereum 2.0 (Eth2 or “Serenity”) is a multi-stage update to the Ethereum blockchain. It aims to improve the scalability and security of the Ethereum network by making several changes to the network infrastructure, most notably moving from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism.
It is important to highlight that Ethereum 2.0 is not a correct term. In January 2022, the Ethereum Foundation said it would stop calling the update Ethereum 2.0. The rebranding is intended to reflect that it is a network upgrade, not a new one.
Accordingly, Eth1 is the execution layer where smart contracts and network rules reside. At the same time, Eth2 is referred to as the “consensus layer.” It ensures that devices participating in the network act according to its rules. However, the name Ethereum 2.0 went viral.
How does Ethereum work
Ethereum operates as a classic Bitcoin-like blockchain network with several modifications. The Ethereum network processes millions of transactions that are combined into blocks. Each block is connected to the previous one, thus forming a chain. The network works on smart contracts written in the Solidity programming language. This is a special set of instructions that all nodes execute. It helps establish interaction among all owners of Ethereum-based cryptocurrencies. On the Ethereum network, smart contracts can be executed multiple times (unlike the Bitcoin blockchain).
Also, Ethereum can be referred to as a toolkit for building and running decentralized applications (dApps). DApps are the same applications as any other made on Windows, iOS, etc. The difference is that they are running on the blockchain in a decentralized manner and “powered” by cryptocurrency. Unlike typical applications, which are regulated by centralized development teams, dApps are regulated by smart contracts.
How to buy Ethereum?
The whole process is pretty simple. Let’s see an example of buying ETH on Bybit:
First, we have to enter the trading terminal. To do this, you should either create a new account on Bybit.
The next step is preparing our side of the deal. You can top up your balance with fiat currencies (USD, EUR, etc.) or crypto (stablecoins, BTC, etc.). Also, you can purchase ETH directly with your credit card.
3. Find ETH
Click on Trade and find ETH. Then search for the required trading pair. If you deposited USDT, then your choice is ETH/USDT.
4. Make a purchase
Click on Buy and choose Market price. After that, set the amount of ETH you want to acquire or the amount of USDT you want to swap. Then go down and click on Buy ETH.
5. Check your spot wallet
On Bybit, there are several types of wallets. After purchasing ETH coins in this way, your asset will be stored in your spot wallet.
1. Ethereum vs. Bitcoin
Bitcoin can be called the ancestor of cryptocurrencies, while Ethereum is just the second most popular and biggest crypto today. Meanwhile, Bitcoin is just a cryptocurrency. Ethereum is an entire platform whose native token is Ether. Bitcoin is largely a store of value and a means of exchange. Ethereum is a general-purpose blockchain. Many other cryptocurrencies use Ethereum or derivatives of the Ethereum protocol as they provide faster transaction processing than the Bitcoin blockchain.
Bitcoin’s energy consumption reaches 110 terawatt-hours per year, while Ethereum’s figure is 0.03 kilowatt-hours per year. Advanced processors serve complex algorithms in the Bitcoin blockchain. Ethereum 2.0 requires much less electricity, making Ethereum a greener cryptocurrency.
In addition, Ethereum is based on a proof of stake (PoS) model that distributes rewards depending on the size of the share owned by the validator. Bitcoin is based on the proof of work (PoW) model and requires huge amounts of electricity to maintain computing power.
Yes, it all started with Bitcoin, but it must constantly prove its status as the most efficient and valuable cryptocurrency to maintain its leadership. At the moment of writing, the market capitalization of Bitcoin is as high as $300 billion, while the market capitalization of Ethereum is just over half that figure, namely $150 billion. However, in 2021, the market capitalization of Ethereum has grown faster than Bitcoin’s.
2. Ethereum vs. Ripple
The Ripple blockchain was first created in 2012, three years before the advent of Ethereum. It was developed and launched by a private company called Ripple Labs.
The founders’ goal was to create a blockchain protocol that could challenge the cross-border payment system banks use to transfer funds abroad. Interestingly, even if Ripple Labs has mainly focused on the banking industry, anyone can use the Ripple blockchain to send and receive funds. Anyone can also start trading their coin (XRP) as Ripple is freely available on the market.
When it comes to the performance of the Ripple blockchain, this is where the main differences come into play. When a user sends XRP coins to another person, it takes an average of 4 seconds to verify the transaction. While Ethereum’s 16 seconds is a good number, Ripple does it 4x faster.
The transaction fees when using the Ripple blockchain are also lower. There is a standard fee of 0.00001 XRP per transaction. Even when XRP reached its highest value at the beginning of 2018, the fee was $0.0000329. This is so small that sending funds from Ripple is practically free.
One of the most critical aspects when choosing XRP or ETH coins is the issue of scalability. Ethereum can process approximately 15 transactions per second. Ripple can serve about 1,500, which is significantly more than Ethereum.
3. Ethereum vs. Ethereum Classic
Before the advent of Ethereum Classic, there was only the Ethereum cryptocurrency. The project progressed well until the hacker attack, which resulted in the loss of 50 million dollars.
After the incident, the platform’s creators began looking for the project’s “weak point” to think about how to fix it. The best solution was to fork. The Ethereum blockchain has completely stopped. In its place, a new cryptocurrency was created. It was named Ethereum. The old version that existed before was renamed Ethereum Classic.
Ethereum Classic developers oppose any changes to the system. And the creators of Ethereum look at them positively if a large part of the team supports such changes.
The level of trust in ETH is higher than in ETC. Plus, only about 10% of the project’s clients remain with the old coin. The rest started using Ethereum. Also, ETC is still running on PoW. At the same time, ETH has long switched to PoS.
4. Ethereum vs. Cardano
Cardano is a blockchain platform created by Input Output Hong Kong and Ethereum co-founder Charles Hoskinson.
In terms of scalability, Ethereum lags behind Cardano. Currently, the Ethereum blockchain can process about 15 transactions per second. For comparison, Cardano can support about 257 transactions per second.
Also, Cardano introduces a new consensus mechanism known as Ouroboros. Ouroboros is a PoS chain protocol that enables lightning-fast transactions. The system uses randomly selected leaders to approve blocks to accomplish this task. The network will choose these nodes at the beginning of each epoch.
Comparison table of 4 cryptocurrencies
|General idea||Network for proposals and approvals of various contracts within the blockchain||System for non-cash transfers||New generation payment system for banks||Remain the principles of old-school Ethereum blockchain||Fast, decentralized, secure and scalable technology platform|
|Consensus mechanism||PoS||PoW||Ripple Protocol consensus algorithm (RPCA)||PoW||Ouroboros|
Is Ethereum a good investment?
Many experts think that Ethereum is a better investment option than even Bitcoin. Ethereum lost 84% of its value after the so-called “crypto bubble” burst in 2017, but it has not ceased to exist. Just like the Internet, which did not die after the “Internet bubble” of the 90s, Ethereum has gained strength and momentum and has become even stronger and more fundamentally attractive.
Is Ethereum safe?
Ethereum is one of the safest cryptos in the world. The developers are constantly working on its upgrades, and The Merge (switching to PoS) is another proof.
The transition to staking will allow Ethereum to become more accessible to users since the security of the blockchain is provided not by miners but by users who deposited and blocked their share of coins. They are called validators. Thus, it was possible to improve the protection with lower costs and increase the scalability of the blockchain platform. At the same time, nothing will change for a simple cryptocurrency user.
Also, Ethereum obeys all the rules provided by the SEC (U.S. Securities and Exchange Commission). So there is almost no chance this project will be banned by the US government, which is also a green light.
Here are some factors that investors should consider before investing in Ethereum.
|Cryptocurrency Features||Ethereum (ETH)|
|Publisher or Developers||Vitalik Buterin|
|Headquarters (Registration Number)|
|Published Date (CMC Registration)||2015-08-07|
|Max Supply||No limit|
Reliability Score of Ethereum in 2023
These are indexes mesuring the investment reliability of Ethereum conducted by Coin-Labs.
|Investment Reliability Rating Items||Scores and Current Status|
|Company Activation Rate||9.0 / 10.0 CAR|
|Communication Rate||9.0 / 10.0 CR|
|Technology Transparency Rate||9.0 / 10.0 TTR|
|Development Participation Rate||10.0 / 10.0 DPR|
|Listing Status on the World's Top 10 Exchanges||Listed on 10 Exchanges|
|Number of Available Pairs Worldwide||6,598 Pairs|
|Market Cap of the Cryptocurrency||288,993,003,573,071 KRW (Rank #2)|
Here are the price and recent trading volume of Ethereum. (Data of 2023-03-22 14:43:25)
|Price Items||Price and Trading Volume of Ethereum|
|Ethereum Price||2,361,558.170 KRW|
|Price Change 24h||3.58%|
|Price Change 7d||5.68%|
|Trading Volume 24h||14,151,444,284,945 KRW|
|Trading Volume Change 24h||7.29%|
You can check the development status and social media information of Ethereum through the links in the table below.
|🌎 Official Website||https://www.ethereum.org/|
|📖 White Paper||https://github.com/ethereum/wiki/wiki/White-Paper|
|🛰️ Source Code (GitHub)||https://github.com/ethereum/go-ethereum|
|🎺 Message Board||https://forum.ethereum.org/|
Where to Buy Ethereum
Here are the top ten world crypto exchanges where traders can buy Ethereum in 2023.
|Top10 Exchanges||Listed Status||Page URL|
Frequently Asked Questions
What is the current price of Ethereum?
Ethereum price today is 2,361,558.170 KRW. Furthermore, the price of Ethereum has fluctuated by 3.58% from 24 hours ago, and by 5.68% from a week ago.
Where is Ethereum listed?
Currently, it is listed on a total of 10 among the world top 10 exchanges.
What is the market cap of Ethereum now?
Currently, Ethereum has a market cap of 288,993,003,573,071 KRW, which is ranking 2 among cryptocurrencies worldwide.
How much is the trade volume of Ethereum?
Currently, 122,373,866 ETH coins are circulating through 6,598 market pairs. As a result, in the last 24 hours, 14,151,444,284,945 KRW of ETH coins were traded in the market.