Cryptocurrency prices have been surging for a couple of months. Most people are familiar with Bitcoin, which saw a spectacular performance last year. Ethereum is another cryptocurrency that could potentially perform amazingly in the coming days. Although Ethereum is similar to Bitcoin, it is not a currency. Here are 12 things you should know about Ethereum:
1. What is Etheruem?
Ethereum is an open-source computing platform that uses smart contracts. It uses blockchain technology that allows creation and deployment of decentralized applications. The currency, Ether, is used for trading and paying of fees on the Ethereum network
2. Ethereum Founder
Etheruem was founded in 2013 by Vitalik Buterin, who had at the time had ideas while working in the Bitcoin community. He first came up with the Ethereum white paper which set the way for Ethereum to come into play. In 2014, along with Dr. Gavin Wood, they officially launched Ethereum at The North American Bitcoin Conference.
3. Origin of the Name
The name originated from World of Warcraft (WoW). Vitalik handpicked the name Ethereum while he was exploring a list of elements from science fiction. He liked the word since it contained “Ether,” an element that allows light to permeate all space and transmit transverse waves.
4. History of Ethereum
To get this crypto train rolling, Ethereum required a lot of resources. It had planned to conduct a pre-sale of Ether tokens which would have raised capital in an effort to create several legal entities, such as Ethereum Foundation in Switzerland. The first pre-sale in 2014 gathered 31,591 bitcoins valued over $18 million which was exchanged with 60 million Ethers. The amount settled legal debts and the wages for the developers.
5. Ethereum Availability in Trading Platforms
If you are interested in getting your hands in trading with Ethereum, it is the high time you open your eyes. With Trading Game, it is possible to trade with Ethereum without risking a single penny. The application is absolutely free to use but still with much to explore. The highest trading volume comes from Phoenix at 51.54%. This is the largest share market of the ether market.
6. The Rapid Rise of Ethereum Price
Initially, the price of Ether was set at 200 ETH per BTC. This means that 1 ETH was probably a few cents each. By June 2017, Ethereum was trading at around $407.10, representing more than 5000% rise in value from Jan 2017. Ether now ranks second after Bitcoin which is valued at more than $40 billion. It has a more potential to grow further. Analysts had projected that the price of Ethereum could exceed $1200 by the start of this year.
7. Growing Online Search
Most people always look for more information before they can make investment. Between 12th and 18th March 2017, ether online search hit its peak. Currently, Ethereum is increasingly becoming popular across the world.
8. Banks work Together with Ethereum
Ethereum suits the needs that the nature of the banking industry and the high security required in order to protect the interests of their customers. It is projected that the value of Ethereum will continue to rise because most banks will move to blockhain-based applications that apply smart contracts to automate all financial transactions. This means that the demand for smart contracts will increase which will see the value of Ethereum surge as well.
9. Growth of Ethereum Platform
Initially, the version of Ethereum was a a beta version known as Frontier. It allowed developers a platform to experiment, learn, and start creating decentralized applications along with tools based on Ethereum. Frontier was launched on March 2014. The second platform is known as Homestead, which was released in March 2016. It is an upgrade that includes many protocol changes and network changes that allow network upgrades. Ethereum is still not in its final form. More changes are expected.
10. Success Took a While
The price of Ether had increased over 2800%. In the first quarter of 2017, Ether had boosted its market share by $7 billion while its price snowballed more than 5 times. Since its release, the price of Ether has been fluctuating. Come March 2017, the 24-hour turnover was about $600 million while at other times it could have been as low as $100,000. Its potential and capability is currently showing its worth. Since 2016, the sale of Ether-based tokens has risen and it is projected to go further.
11. Ether’s Market
Unlike Bitcoin, Ether was not intended to be used as a global digital currency. It was primarily meant to be used as a payment method for specific actions on Ethereum network. Since it is supported by similar markets of the bitcoin network, Ether can operate in other platforms like Kraken and Bitfinex.
12. Ether’s Future Prospects
Ethereum’s future seems very bright with very many users hoping for its success. With a lot of plans lined to improve its operations, the many questions that remains unanswered is how much will Ethereum grow? The rapid increase in its price in the past few months might make it overtake Bitcoin very soon.