With innovative concepts such as smart contracts and decentralized applications, Ethereum is paving the way for revolutionary use cases and providing the foundation for further developments in the crypto space.
Check out the complete Ethereum (ETH) crypto review here, starting from its history, prospects, and how to buy Ethereum (ETH).
What is Ethereum?
Ethereum is a decentralized blockchain platform that enables the execution of smart contracts and the development of decentralized applications ( dApps ).
Founded by Vitalik Buterin in 2013, Ethereum has become one of the most influential crypto projects since its official launch in 2015.
To understand more deeply what Ethereum is and how its journey began, let's examine its early history.
History of Ethereum
Background
Before Ethereum, the blockchain concept was first introduced through Bitcoin by a person or group using the pseudonym Satoshi Nakamoto in 2008.
Bitcoin, as a peer-to-peer digital currency, allows the transfer of value without a central intermediary.
However, its primary focus is on finance, and Bitcoin has limited programming language for creating complex contracts or applications.
Then, after some time, Vitalik Buterin, a crypto programmer and writer, became interested in the idea of using blockchain for more than just financial transactions.
Vitalik Buterin believes that blockchain can be used to run decentralized applications on top of it, opening the door to greater innovation than Bitcoin alone can offer.
It was from Vitalik Buterin's innovative ideas that Ethereum was born.
Formation of Ethereum
In late 2013, Buterin began writing the Ethereum whitepaper.
This whitepaper details the idea of a new blockchain platform that will enable the development of decentralized applications and smart contracts.
Together with several other contributors, including Gavin Wood, Joseph Lubin, and Anthony Di Iorio, Buterin began building an Ethereum prototype.
In 2014, the Ethereum Foundation, a non-profit organization dedicated to the development of Ethereum, was founded in Switzerland.
Funding for the project was obtained through the sale of Ether tokens in a public offering (ICO) campaign in July 2014. The ICO raised more than $18 million, providing initial funding for Ethereum's development.
Also Read: Understanding Ethereum Transactions
Ethereum Launch
After more than a year of development, Ethereum was officially launched on July 30, 2015.
The launch was the starting point of a larger blockchain revolution, as Ethereum brought the concept of smart contracts into the real world.
Ethereum was launched with the birth of the digital currency Ether (ETH), which functions as "fuel" to run applications on the Ethereum network.
From its inception, Ethereum received great attention from the crypto and technology communities.
Developers are starting to explore the potential of this platform by building various decentralized applications and smart contracts.
Ethereum is also the subject of discussion in the traditional financial world, due to its potential to change the global financial system.
The Special Technology Behind Ethereum
1. Decentralized Blockchain
The Ethereum blockchain is a decentralized ledger that contains chronological and secure transaction records.
This means that the data stored is not centralized on one entity or server, but is spread across a network of nodes.
Every transaction made on Ethereum is recorded in blocks that are linked to each other, creating a blockchain.
Thus ensuring transparency, security and resistance to data manipulation.
2. Smart Contracts
Smart contracts are computer programs that run on top of the Ethereum blockchain.
Smart contracts are code-based agreements that can be executed automatically when certain conditions are met.
Smart contracts allow parties to create and execute agreements without the need for intermediaries or central authorities.
Smart contracts also have many applications, including in finance, insurance, real estate, supply chain management, and more.
3. Solidity Programming Language
Solidity is a programming language used to write smart contracts on Ethereum.
This programming language is specifically designed to meet the needs of smart contract development with features such as static data types, contract generation, and algorithm implementation.
Solidity also shares syntax with other popular programming languages such as JavaScript and C++, making it easy for software developers to understand.
4. Gases
Gas is a measure of the fees required to run a transaction or smart contract on Ethereum.
Every operation in a smart contract or transaction has a gas fee associated with it.
Gas fees are determined by the complexity of the operations performed by the smart contract and the demand to use the network at that time.
Users must pay gas fees to execute their transactions, which are then given to miners as an incentive to include transactions in blocks.
5. EVM (Ethereum Virtual Machine)
EVM is an execution environment that runs smart contracts on Ethereum.
This EVM is a virtual machine that runs on every Ethereum node and allows smart contracts to execute consistently across the network.
Additionally, EVM uses bytecode, generated from compiled Solidity code, to execute smart contracts.
Thus ensuring consistency and security in the execution of smart contracts across the network.
Also Read: The Important Role of the Ethereum Virtual Machine (EVM) in the Ethereum Ecosystem
6. Proof of Stake (PoS) and Proof of Work (PoW)
Ethereum currently operates on Proof of Work (PoW), which requires mining to validate transactions and create new blocks.
However, in the ongoing upgrade to Ethereum 2.0, the platform will switch to Proof of Stake (PoS).
PoS replaces mining with a transaction validation process that is based on the amount of Ether staked by validators.
This technology is expected to improve the efficiency, security and sustainability of the Ethereum network.
Ethereum (ET) Investment Considerations
Ethereum (ETH), a decentralized blockchain platform, has become one of the most popular and in-demand crypto assets since its launch in 2015.
In 2024, Ethereum has great potential to become a profitable investment.
Here are some reasons:
1. The Merge and Ethereum 2.0
- The Merge: Ethereum is in the process of transitioning from Proof-of-Work (PoW) to Proof-of-Stake (PoS) via The Merge. This transition is predicted to be completed by mid-2024. The Merge will improve Ethereum's scalability, energy efficiency and security.
- Ethereum 2.0: After The Merge, Ethereum will continue to evolve towards Ethereum 2.0. Ethereum 2.0 will bring many new features, such as sharding, that will significantly increase the network's scalability and throughput.
2. Increased Adoption
- Ethereum has seen widespread adoption from large institutions and companies, such as JPMorgan Chase, Visa, and Mastercard. This adoption shows institutional confidence in Ethereum and its future potential.
- Decentralized Finance (DeFi): Ethereum is the main platform for DeFi, allowing users to carry out various financial activities without intermediaries. DeFi has experienced rapid growth in recent years, and Ethereum is predicted to continue to be a major platform for DeFi.
- Non-Fungible Tokens (NFTs): Ethereum is also the primary platform for NFTs , unique digital assets that can represent things like artwork, music, and game items. The NFT market has experienced rapid growth, and Ethereum is predicted to continue to be the main platform for NFTs.
3. Economic Factors
- Inflation: High global inflation may encourage investors to seek alternative assets such as Ethereum, which have the potential to outperform traditional fiat currencies.
- Interest Rates: An increase in interest rates by a central bank can depress the prices of risky assets such as stocks. However, Ethereum has several advantages over stocks, such as utility and scarcity.
4. Risk
- Volatility: The crypto market is notorious for its volatility, and Ethereum is no exception. The price of ETH can experience significant fluctuations over a short period of time.
- Regulation: Crypto regulations are still unclear in many countries. Unfavorable regulations could have a negative impact on the price of ETH.
Ethereum 'Fear' and 'Greed' Index 2024
Image source: Tokize.com
According to indicator information from Tokize.com updated on February 11, 2024, in recent weeks, the crypto market has experienced a significant decline, with market capitalization falling by more than 65%.
However, Ethereum has been able to profit from this rally, thus showing potential for further upside in the future.
This assumption is reflected in investor sentiment which tends to be positive, with the fear and greed index showing the dominance of "greed" over "fear".
In addition, the 'fear' and 'greed' indices are used as a tool to evaluate investors' attitudes towards market conditions.
Currently, the indicator shows "greed", indicating investor optimism towards crypto and the possibility of a price increase due to increased buying interest.
The trend provides a bullish signal for investors, and interest in Ethereum in particular has increased, supported by positive views from experts such as Cathie Wood who predicts Ethereum's growth to outperform Bitcoin.
Ethereum Growth Potential 2024, Is it Worth the Investment?
Investing in Ethereum crypto has proven profitable for traders who employ the right strategy, as the price of ETH continues to show an upward trend year after year.
Ethereum started trading in 2015 at a price of around $1, but in 2016 it experienced a significant increase.
Ethereum's price continued to rise until it reached a high of nearly $1,400 in 2018 before experiencing a decline in 2019, returning to around $100.
However, the crypto market experienced a boom in the 2020-2021 period, pushing the price of Ethereum up over $4,500.
Despite the stock market crisis in 2022, the price of ETH remained above $1,500, never dropping below the critical threshold of $1,000.
To monitor Ethereum price movements in EUR, you can use sites or applications such as Coinmarketcap, Coingecko, or monitor trade movements on Bittime.
Regarding Ethereum (ETH) market conditions as of February 12 2024, the following is graphical information on Ethereum's growth from Bittime Trade that can be taken into consideration.
Image source: Bittime.com
Based on the graph of Ethereum (ETH) movement data on Bittime, it is clear that on February 12 2024, Ethereum (ETH) experienced a decline of -1% or currently, when converted into rupiah, it is worth IDR 39,022,737.
For the rest, please project independently using the DYOR approach to estimate the direction of Ethereum (ETH) above.
Remember, the information about Ethereum (ETH) in this article is purely for educational purposes. It is not a recommendation or even an invitation to invest in crypto, because the risks are very high.
How to Buy Ethereum (ETH) on Bittime
You can buy and sell ETH coins in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappbeti.
Ethereum (ETH) is available on Bittime with the ETH/IDR pairing.
To be able to buy ETH/IDR coins on Bittime, make sure you have registered and completed identity verification.
Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet.
For your information, the minimum purchase of Bittime assets is IDR 10,000. After that, you can make ETHEREUM (ETH) purchases in the application.
Monitor price chart movements of ETHEREUM (ETH), Bitcoin (BTC), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Ethereum (ETH) Prediction 2024? Up or Down?
What is EigenLayer? Ethereum Restaking Protocol
What Does Geth Mean on the Ethereum Blockchain?
Dencun Ethereum Upgrade Potentially Reduces Ether Burn
What is Ethereum Cancun and How Does It Influence
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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