Ethereum and its Evolution: Things to Consider

Ethereum and its Evolution: Things to Consider

The first Cryptocurrency, Bitcoin, was launched ten years ago. Bitcoin became a massive success after reaching its first hike in price, from $0.0008 to $0.8 in 2010. Recently, Bitcoin reached its highest value, $64,863, in 2021. Potential investors should check the current value of Bitcoin before investing. Look up cfd trader for more such data. After the initial success of Bitcoin, many other Cryptocurrencies came into being. They used the same technology to make it happen. Today, Blockchain Technology has shown massive success in various other fields. Blockchain will prove to be an invaluable asset to almost all areas of work shortly.

Ethereum is the second most popular Cryptocurrency following Bitcoin’s path to prominence. Ethereum was developed in 2015 using Blockchain Technology. All Cryptocurrencies are decentralized. Thus, a Blockchain ledger becomes the only available option.

Blockchain and Ethereum

A 19 years old Russian Vitalik Buterin developed the Ethereum Blockchain. Five years ago, Buterin had to crowdfund the Ethereum Blockchain. Almost six years later, today, Ethereum stands as the most promising Cryptocurrency after Bitcoin. Buterin developed the Ethereum Blockchain following Satoshi Nakamoto’s idea for the Bitcoin Blockchain. Both the Blockchains work in similar ways.

They are both public ledgers. The information, once encrypted, cannot be tampered with. Any changes in the Blockchain will only be possible with the consensus of the community members. However, there is one distinction between the Bitcoin Blockchain and the Ethereum Blockchain. While Bitcoin Blockchain only enables decentralized digital currency, the Ethereum Blockchain hosts both centralized and decentralized currencies. “Smart contracts” is possibly the most popular of all the applications running on this Blockchain.

“Smart Contracts” are programs that are capable of running automatically. If a flight is delayed by hours more than the prescribed amount of time, the customer automatically receives reimbursement. After the scam of 2016, when a hacker stole most of the funds collected in crowdfunding, the Ethereum Blockchain has advanced considerably. While there remain instances of frauds and thefts, the frequency has gone down in manifolds.

Ethereum Price

The hike in the Ethereum price is due to the recent faith in Cryptocurrencies. With more people inclined towards investing in Cryptocurrencies, most of them choose to invest in Ethereum. In 2020, the world witnessed the establishment of Decentralized Finance (DeFi). It is akin to the mainstream financial world, except that no bank or other financial institutions are involved. Records show that the total investment in DeFi projects has been $24 billion by 2020. These projects aim to invest the ether holdings of the investors, thus leading to a new stream of revenue generation.

Ethereum has recently broken all previous records and reached its new high. Ethereum cost $1440 in January 2021. Researchers recorded the total market value of ether to be $160 billion, though it has currently fallen to $140 billion. Ethereum is ten times higher in price than it was during the outbreak of the Covid crisis. The value of Ethereum today seems like a remarkable feat for a Cryptocurrency that is only five years old. With the change in investors’ outlook, more people consider Cryptocurrency a secure investment. However, the credit to Ethereum’s success goes to the massive development in the Ethereum Blockchain made lately.

The Future of Ethereum

Ethereum aims at minimizing the energy exhaustion that mining requires. It is trying to come up with ways to make this Cryptocurrency a sustainable option. According to various researchers, it should not take more than a year for Ethereum to implement its new technology to reduce the depletion of natural resources. As a Cryptocurrency, it is still prone to certain risks.

However, the general attitude of addressing issues before they blow out of proportion makes this Cryptocurrency reliable. Ethereum has strived for perfection ever since its inception. The vicissitudes of the Cryptocurrency market does not deter Ethereum from being a worthy competitor to Bitcoin due to the reasons stated above.