What is Ethereum?
Ethereum is a decentralized platform designed to function as a "world computer" for building decentralized applications (dApps). Unlike Bitcoin, which primarily facilitates peer-to-peer cash transfers, Ethereum's blockchain executes programmable code via its Turing-complete Ethereum Virtual Machine (EVM).
Key features:
- Smart Contracts: Self-executing contracts with predefined conditions (e.g., releasing funds when terms are met).
- Ether (ETH): Native cryptocurrency used for transactions and compensating network participants.
Dual Account Types:
- Externally Owned Accounts (EOAs): Hold ETH balances (like Bitcoin addresses).
- Contract Accounts: Store executable code for dApps.
History of Ethereum
- 2013: Vitalik Buterin publishes the Ethereum whitepaper.
- 2014: Development begins with core team members Mihai Alisie, Anthony Di Iorio, and Charles Hoskinson.
- 2014 Crowdsale: Raises **$18.4M** (2000 ETH = 1 BTC, ~$0.35–$0.40 per ETH).
- 2017: Ethereum Enterprise Alliance (EEA) forms to integrate Ethereum into businesses.
👉 Explore Ethereum’s latest developments
How Ethereum Mining Works
- Proof-of-Work (PoW): Uses the Ethash algorithm (GPU-mining dominant; ASICs emerging).
- Block Time: 5 seconds (vs. Bitcoin’s 10 minutes).
- Future Shift: Planned transition to Proof-of-Stake (PoS) via the Casper upgrade, where validators stake ETH as collateral.
Ethereum vs. Other Cryptocurrencies
| Feature | Ethereum | Bitcoin |
|------------------|-----------------------------------|----------------------------------|
| Primary Use | dApps, smart contracts | Digital currency |
| Block Time | 5 seconds | 10 minutes |
| Supply Cap | Uncapped (potential 120M cap) | 21M BTC |
Ethereum Market Data (2025)
- Current Price: [Dynamic; check exchanges for live rates].
- Circulating Supply: ~98.9M ETH.
- Total Supply: Uncapped (discussions to cap at 120M).
Where to Buy ETH
Top Exchanges:
- Coinbase
- Binance
- Kraken
- Gemini
- Localethereum (P2P)
Future Developments
- Casper (PoS): Reduces energy consumption vs. PoW.
- Plasma: Scalability solution via sidechains.
- Raiden Network: Enables Lightning Network-like micropayments.
- ERC-721: Standard for non-fungible tokens (NFTs), pivotal for asset tokenization (e.g., real estate).
Verdict: 8/10
Pros:
- Leading dApp platform with robust smart contract functionality.
- ERC-721 NFTs unlock real-world asset tokenization.
Cons:
- PoS transition risks (less tested than PoW).
- ICO market volatility may impact ETH demand.
👉 Stay updated with Ethereum trends
FAQs
Q: Is Ethereum a good investment in 2025?
A: Potential hinges on PoS adoption and NFT growth, but always DYOR (Do Your Own Research).
Q: How do I stake ETH after Casper?
A: Lock ETH in a validator node; rewards accrue for honest validation.
Q: Can Ethereum scale to compete with Visa?
A: Layer-2 solutions (Plasma, Raiden) aim to boost throughput beyond base-layer limits.
Disclaimer: This guide is informational only. Consult a financial advisor for investment decisions.
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