It's been 3 years since the release of the second most popular cryptocurrency in the world - Ethereum. What happened during these 3 years in the market of cryptocurrencies and how did Ethereum change people's idea of the digital currency, as well as the prospects of blockchain technology.
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Let's start from the very beginning. Ethereum is a distributed open source computing platform. It is based on blockchain technology, as well as smart contracts.
We can say that Ethereum is a kind of virtual machine that all network members can enjoy on an equal footing.
How did Ethereum come about?
Ethereum was originally introduced by Vitalik Buterin – Russian-Canadian programmer in late 2013 as a result of his research in the work in the bitcoin community. Shortly thereafter, he published a technical paper Ethereum, which described in detail the technical structure and rationale for the Ethereum protocol and the architecture of smart contracts. In January 2014, the creation of the etherium was officially announced by Vitalik at the North American Bitcoin conference in Miami, Florida, USA.
How did the Ethereum cryptocurrency come about?
In addition to developing software for Ethereum, the ability to launch a new cryptocurrency required enormous effort. It was necessary to collect the resources necessary for its launch. To unite developers, miners, investors and other interested parties, the developers of Ethereum announced their intention to conduct the initial coin offer (ICO) of the Ethereum cryptocurrency. The legal and financial complexity of raising funds during pre-sale preparation led to the creation of several law firms, including the Stiftung Ethereum Foundation, established in June 2014 in Zug, Switzerland.
Blockchain Ethereum: the principle of work
Ethereum is the second most popular blockchain project in the world, and is interesting from a technical point of view.
Bitcoin, a kind of starting point, was not just a system of financial transactions, but a display of a new way of organizing a network where security is guaranteed not by intermediaries and agreement with the client, but by pure mathematics. So the world learned about the blockchain technology - a permanent list of data, the integrity of which is guaranteed by external modifications of mathematical data.
In turn, the developers of Ethereum used the idea of blockchain as a starting point, and used it for a wider class of implementations. It became possible to guarantee not only the reliability of financial transactions, but also literally any terms and agreements. It also allowed to automate the creation of such conditions.
Bitcoin and Ethereum: which cryptocurrency will survive?
In fact, Bitcoin and Ethereum projects have a significant technical difference and different goals. Currently, bitcoin is the most popular cryptocurrency in the world, and it is relatively stable. In turn, Ethereum seeks to cover much more. Here, the cryptocurrency Ether is only an element used in the network of smart contracts.
Which cryptocurrency will survive - it is impossible to answer unambiguously. This can be affected by a number of factors - legislation, the volatility of the cryptocurrency market, negative or, conversely, positive news. A hundred percent forecast concerning the price of an ether or bitcoin will not be given even by the most experienced expert.
Ethereum rate today
The average value of the July Ethereum rate is $ 470. This is 2.25% less than in June.
The rate of the cryptocurrency is regularly changing. The price of an Ethereum, as in the case of any other digital currency, directly depends on supply and demand. Making major investments, market participants can direct the course in the right direction. The process can be called a pump if it moves in the direction of increase, or a dump - if downward. Nevertheless, after too sharp jumps the price, as a rule, returns to its former position. However, this does not prevent the Ethereum cryptocurrency from attracting new users.
Ethereum: Prospects and Forecast
While the prospects of bitcoin are estimated by the method of analysis of such parameters as the speed and magnitude of the commission, the Etherium requires consideration of several other characteristics. The first is the success of the blockchain-startups launched on its platform, and the second is the speed of development of its direct competitors, for example, Cardano's crypto-currencies.
However, we can not fail to note the advantage that the Etherium possesses in comparison with bitcoin and other altcoins. The demand for this cryptocurrency is supported by a number of ICOs organized on the ERC20 protocol. You can buy such tokens only for an Ether.
As for the specific forecasts for the current year, they are considerably less than for bitcoin. On the one hand, this is a positive moment, as there is no risk of a lot of destructive and distracting information. On the other hand, this fact complicates the understanding of which direction the Etherium rate will take.
Many experts believe that the prospects for Ethereum have not yet been fully disclosed. So, for example, co-founder of Apple Steve Wozniak is convinced that this blockchain-platform can become as popular as his company.
Ethereum Rate: growth chart since the launch
Three years have passed since the creation of the cryptocurrency. From August 2015 to July 2018, the Ethereum rate has changed, which is reflected in the graph:
Source: coinmarketcap.com & logincasino.com
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