What is Ethereum (ETH)?

Hey crypto friends!

Today, let's explore Ethereum, a pioneering decentralized open-source blockchain system featuring its own cryptocurrency, Ether. As the second most valuable blockchain after Bitcoin—the original and most recognized cryptocurrency often likened to gold—Ethereum is sometimes referred to as the "silver" of the blockchain world. While Bitcoin introduced the world to cryptocurrencies, Ethereum has taken the technology further with its innovative features.

Whether you're considering diversifying your portfolio by adding Ethereum to your wallet or you're simply curious about the intricacies of Ethereum, this article will guide you through everything you need to know. Let's dive in!

What is Ethereum?

Ethereum is an advanced platform that enables developers to create and manage decentralized applications - dApps - and digital currencies through smart contracts. These contracts are programs that automatically execute tasks under specific conditions, ensuring secure operations without failures or external interference.

The native currency of Ethereum, $ETH, is used both as payment for transactions on the network and as a reward for miners who keep the network operational and secure.

The key feature of Ethereum is its ability to offer developers complete freedom to customize and innovate in their projects, making it an ideal platform for a wide range of applications, from financial transactions to the transfer of digital assets.

Ethereum is a layer 1 blockchain, in the other words, a main network, where transactions are initially recorded and validated. This enables Layer 2 blockchains to operate on top of it to improve the scalability and efficiency of these core networks without compromising security.

Ether (ETH) Price today

The price of Ethereum (ETH) today is $3,184.13, with a 24-hour trading volume of $11,413,206,884.70. This represents a 1.53% increase in price in the last 24 hours and a 0.65% increase in price in the last 7 days.There are about 120 million Ethereum coins available at the moment, and if you sum up the value of all of them, it amounts to approximately $439.36 billion.

By the time of the writing, $ETH price was changing hands around $3,236.76.

The most used DApps on the Ethereum network include:

1. Axie Infinity: Continues to be one of the most popular blockchain-based games. Players create, collect, and battle creatures called Axies. The game utilizes Ethereum for transactions and for governing the in-game economy.

2. The Sandbox: A virtual world game where players can build, own, and monetize their gaming experiences. Users use SAND, the game's native token, for transactions and interactions within the ecosystem.

3. Decentraland: Similar to The Sandbox, Decentraland is a decentralized virtual reality platform. Users can buy, sell, and develop virtual properties. The platform enables the creation of various digital experiences and uses MANA, its native token, for all transactions.

History and founders

Ethereum was created by a group of eight co-founders who came together in 2014 in Switzerland. Among them, Vitalik Buterin, the author of the original proposal and a central figure, and Gavin Wood, who developed the first technical version of the system. The other co-founders include early financiers and significant contributors to the structure and foundation of the platform, such as Anthony Di Iorio and Joseph Lubin, who also founded the incubator ConsenSys. Each played a vital role in the early days of Ethereum, contributing to its development and expansion.

What makes Ethereum unique?

Ethereum is a pioneer in smart contract technology, which are automated programs that facilitate agreements on the internet without intermediaries, making transactions cheaper and more reliable. According to co-founder Gavin Wood, Ethereum's blockchain was designed as a kind of "world computer," theoretically capable of making any program more powerful, resistant to censorship, and less prone to fraud by running it on a globally distributed system.

Additionally, Ethereum supports other cryptocurrencies, called "tokens," through the use of its ERC-20 compatibility standard. Many of these tokens have become popular and are among the top cryptocurrencies in the market. The platform has also gained prominence recently with the increased interest in games that allow users to earn money, such as Play2Earn games.

How does the $ETH token works?

The ETH token serves multiple functions within its ecosystem, including:

Fuel for Operations: ETH is used as "gas" to perform transactions and execute smart contracts on the Ethereum network. This gas is essential to compensate miners for the computational energy required to process and validate transactions.
Ransaction Fees: Users pay transaction fees in ETH, which depend on the required gas and the gas price set by the user. These fees go to network validators. Klever Extension has a gas fee tracker that makes it easier for the user to know the best times to transact, without leaving the platform or visiting external websites
Staking and Security: With Ethereum moving towards a proof-of-stake (PoS) system, ETH holders can stake their tokens to become validators, helping to secure the network and earning rewards in return.
Utility in Applications: ETH is used in decentralized finance (DeFi) for activities such as lending, borrowing, and governance, as well as for purchasing non-fungible tokens (NFTs) and other digital assets.
Investment: Many people buy and hold ETH as an investment, speculating on its future value based on the growth and development of the Ethereum platform.

Ethereum Tokeneconomies

Overview of Ethereum ($ETH)

Token Symbol: ETH
Blockchain: Ethereum
Utility: Ethereum serves as a platform for decentralized applications (dApps) and smart contracts, with Ether (ETH) used to pay for transaction fees and computational services on the network.

Allocation and Supply

Total Supply: Ethereum does not have a capped total supply.
Circulating Supply: Approximately 120 million ETH are currently in circulation.

Utility and Rewards

In-Blockchain Use: ETH is used to pay for transactions, deploy smart contracts, and run applications on the Ethereum blockchain.
Staking: With the ongoing transition to Ethereum 2.0, ETH can be staked to secure the network and earn rewards.
Governance: While Ethereum does not have formal on-chain governance like some other blockchains, ETH holders can participate in community decisions and network upgrades proposals.

Economic Model

Deflationary Mechanisms: Ethereum has introduced a burn mechanism with EIP-1559 where a part of every transaction fee is burned, potentially reducing the supply over time.
Reward Distribution: Rewards are distributed to validators in the new proof-of-stake consensus mechanism, moving away from the proof-of-work model.

Market Performance

Current Price: Around $3,193.33
Market Cap: Approximately $378 billion to $383 billion, varying across platforms.
All-Time Low: ETH's price was once as low as $0.31 during its ICO phase.
Circulating Supply: Approximately 120 million ETH.
24h Volume: Trading volumes are typically in the range of $10 billion to $11 billion.
All-Time High: The highest price of ETH was around $4,867 in November 2021.

Manage Ethereum with The Klever Wallet

Do you know that Ethereum Blockchain is Now on Klever Extension?

Maximizing your engagement with the Ethereum ecosystem via Klever Extension not only involves exploring new tokens, engaging with smart contracts, and diving into decentralized applications but also ensuring that your interactions are secure and efficient.

Download Klever Wallet now and start your journey with Klever today and see the difference for yourself!