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July 27, 2018

Coin Profile: Ethereum (ETH)

Ethereum - Coindirect

A decentralised blockchain app platform.

Coin Market Cap Rank: 2
Current Market Cap: $48,155,898,679
Website: https://www.ethereum.org

 

Ethereum was created by Vitalik Buterin and launched in 2015 by a global team of developers for the Ethereum Foundation – a Swiss non-profit. Essentially, it is a decentralised platform that runs on smart contracts.

But in many ways, Ethereum is similar to Bitcoin in the sense that it is a public peer-to-peer network with its own digital token – Ether.

 

What are Ethereum smart contracts, exactly?

You can think of smart contracts as applications that run according to the way it was programmed. These applications operate on the cryptocurrency industry’s shared global infrastructure called the ‘blockchain’ and are programmed without any risk of a middleman, downtime or censorship.

Few of the many things that Ethereum apps allow is to move funds around, develop markets, and store debt registries or promises. The Ethereum is also designed to store data which can be accessed and used by computer programs running on the Ethereum blockchain. These programs are known as ‘decentralised apps’ or more commonly, ‘DApps’. Developers also receive access to building:

  • Tradable tokens with a fixed supply, a central bank that can issue money, and a puzzle-based cryptocurrency.
  • A crowd-fund to pre-sell a product, a crowd-sale to sell virtual shares in a blockchain organization, and an auction of a limited number of items.
  • Start a virtual organization to vote on issues or transparent association for shareholder voting, and create your own country with an unchangeable constitution and better-delegated democracy.

Nevertheless, every engine needs fuel. Respectively, Ether fuels the operation of the Ethereum blockchain.


Ether (ETH)

The Ethereum network requires Ether or ETH is the digital token required to pay for the computational resources needed to run an application. In more simple terms, ETH is a type of digital payment made to the machine that is executing the requested operation. In turn, users are compensated for contributing their resources.

One of the most debated topics on crypto forums includes the supply of tokens. Each cryptocurrency has a different supply number of coins; and no, the supply of ETH is not infinite. In the case of Ether, the total supply and issuance rate was “decided by the donations gathered on the platform’s presale which occurred in 2014. At the 2014 presale, it was agreed that the issuance of Ether is capped at 25% of the initial supply per year – the relative inflation drops each year. According to Ethereum.org, here are the stats on the supply of Ether:

  • 60-million ETH was created by the presale’s contributors.
  • Out of the 60-million, 12-million was created for the development fund.
  • Every 15-seconds, 5 ethers are created on each miners’ block.
  • Also known as the ‘uncle’/’aunt’ reward, 2 to 3 ETH are sometimes sent to another miner if they were also able to find a solution but their block was not included.


Ethereum engine is kept running by computers across the globe

  1. Ethereum mining

When mining the digital currency, a new block is added to the blockchain. The computer that added the latest transaction – processing the contract and securing the network – to the blockchain would generate this new block and be rewarded 3 ETH. Of course, the compensation is provided in proportion to the machine’s processing power. Thus, if you want to get the most Ether value, powerful mining rigs can be quite pricey.

  1. Ethereum wallets

Ethereum wallets are used by ETH buyers, sellers, miners and traders all over the world. Wallet storages act as the foundation to DApps on the cryptocurrency’s blockchain. Ethereum wallets can be used to buy and hold onto your ETH and other Ether assets in a secure, decentralised way. Alternatively, it is also used as a method to sell, send and receive coins and crypto assets.

  1. Ethereum trading

After the launch of Ethereum, the cryptocurrency quickly climbed to the 2nd highest market share with only Bitcoin above it. Every day, hundreds of ETH coins are traded on cryptocurrency exchanges like Coindirect. Whether you’re a veteran trader or newbie to the cryptocurrency market, Ethereum trading offers profitable benefits.

  1. Peer-to-peer marketplaces

Many peer-to-peer marketplaces keep the Ethereum blockchain running by allowing current and prospective Ethereum investors to buy and sell Ether, and keep track of its market capitalisation.

 

Coindirect offers a comprehensive end-to-end offering

  • A cryptocurrency wallet supporting Ethereum and over 40 additional digital currencies.
  • A peer-to-peer marketplace where buyers and sellers can buy and sell directly from local buyers and sellers in 25 different countries across the globe and at 0% fees.
  • A cryptocurrency exchange where traders can trade 15 USDT, BTC, ETH, XRP, LTC and BCH trading pairs.
  • Direct integration into the exchange through a world-class API.


Access our integrated platform and 
#OwnTheFuture with Coindirect.

 

Disclaimer: This article should not be taken as financial advice. Never invest what you can’t afford to lose as the cryptocurrency market is volatile. Always research as much as possible before buying any coin.