Ether, the world’s second-largest cryptocurrency, has recently taken the spotlight away from bitcoin. On Monday, the digital currency surpassed $4,000 for the first time, and it is currently up more than 450 percent since the beginning of 2021.
That pales in comparison to the gains made by the meme-inspired cryptocurrency dogecoin, which has risen by more than 11,000 percent year to date.
However, many crypto investors view dogecoin as little more than a joke, comparing its growth to the Reddit-fueled trading frenzy that inflated the values of GameStop and other companies.
Here’s a rundown of what Ether is and five fascinating facts about it.
How It All Started with Ethereum?
Ether is the native money of Ethereum, a blockchain technology that is open source. Vitalik Buterin, a Russian-Canadian programmer, and many other cryptocurrency entrepreneurs launched Ethereum in 2013. Many of the persons engaged in creating Ethereum were previously interested in bitcoin.
Bitcoin’s usefulness, according to Buterin, was too restricted. In an interview with Business Insider, he likened it to a pocket calculator that “does one thing well,” but Ethereum is more like a smartphone with various functions.
That is the fundamental notion of Ethereum. It is also based on blockchain technology, a distributed computer network that records all Bitcoin transactions. However, unlike bitcoin, Ethereum allows anyone to develop programs on top of it. Click here to see 0.22 eth to USD.
Ethereum, in Buterin’s words, is “a blockchain with a built-in programming language” and the “most natural method to develop a platform that can be used for many more types of apps.”
5 Interesting Facts About Ethereum
- Banks and Other Tech Giants Like Ethereum
Bitcoin has been around for a more extended period than Ethereum. Perhaps it should come as no surprise that financial institutions and corporations would be among the first to recognize its value. On the other hand, banks have supported Ethereum and have shown strong support for it.
Recent events have seen a blockchain start-up, R3, built on the Ethereum platform, being used to troubleshoot a blockchain problem in the presence of executives from well-known technology companies.
What better way to gain the confidence of financial institutions than through the use of smart contracts? The R3 initiative has the assistance of around 84 financial entities.
- It is More Than Just a Cryptocurrency
What’s more, it enables developers and users to create and distribute their digital things inside the network, which is rather exciting. To be clear, Ethereum is both a cryptocurrency platform and a programming tool.
It has a dedicated team of developers and users who provide feedback to the system to improve.
Even though it is completely decentralized, it has maintained its developers and employees to keep the network running and market it. In a way, Ethereum is both a centralized and a decentralized system in the same sense.
- Limits Like Bitcoins do not bound Ethereum
Bitcoin continues to be the most widely recognized virtual currency, but the rise of Ethereum appears to be closing the gap. Bitcoin’s market capitalization is known to have a fixed number of currencies in circulation.
The goal of Bitcoin mining is to produce 21 million coins, after which there will be no more. Ethereum does not have a monetary cap in the traditional sense. The sole limitation is that only 18 million Ether may be mined every year, the maximum allowed. It is expected to overtake Bitcoin shortly. Learn about the crypto aggregator – Alligat0r.
- Ethereum Hosts a Majority of ICOs
To conduct their Initial Coin Offering sales, most emerging tokens are launched on the Ethereum blockchain. The blockchain is used to host more than three-quarters of all initial coin offerings (ICOs). The ERC-20 protocol is used by the vast majority of initial coin offerings.
- It was Co-Founded by a Millennial
Did you know that Vitalik Buterin, one of the Ethereum co-founders, was born in 1994? In 2013, he was only a teenager when he came up with the concept of creating Ethereum. Dr. Gavin Wood got into his concept and joined forces to co-found the network the following year.