What is Ethereum (ETH)
Ethereum is not just a cryptocurrency. It’s an open software platform based on blockchain technology, which allows creating decentralized applications.
Ethereum’s history began with Vitalik Buterin. In 2013 while examining the work of Bitcoin, Buterin paid attention to the fact that Bitcoin's blockchain does not have its own scripting language for application development. This was a big omission that Buterin intended to fix but he didn’t receive wide support of this idea. So he ended up starting his own project. At the end of 2013, Ethereum was released. Buterin’s main goal was to provide the blockchain with a built-in full-fledged programming language that could be used to create smart contracts. Smart contracts glorified Ethereum. These are contracts written in code and stored in the blockchain. They make transactions traceable, transparent, and irreversible. Buterin officially announced Ethereum at The North American Bitcoin Conference in Miami on January 2014. Also, Ethereum released its own token Ether (ETH).
Where can Ethereum be used?
The most outstanding feature of Ethereum is the wide range of possibilities it offers to users. The most famous are the following ones:
The vast majority of ICO’s that have occurred over the past few years has been placed on the Ethereum blockchain.
A lot of decentralized applications are built on Ethereum and their number is growing. For example, there are Augur, TenX, uPort, and many other projects.
- Payment method
ETH can be used to buy different items.
Ethereum can be used to create decentralized autonomous organizations.
Pros and cons
As every other cryptocurrency, Ethereum has its strengths and weaknesses. The main advantages are:
Immutability. All the data recorded in the blockchain cannot be changed or deleted by a third party.
No censorship. All Ethereum applications are based on the network, where the principle of consensus operates. This makes censorship impossible.
Security. Cryptographically protected blockchain has proved to be immune to fraud or hacking. Ethereum has no Central point of failure.
Transparency. Transactions and entries can be viewed by all users.
Among the disadvantages, the following should be mentioned:
Smart contract code. It's not perfect. DAO has become a prime example of how human error can lead to serious problems.
Low transactions speed. Ethereum can process about 20 transactions per second, while Visa processes more than 15,000.
Scaling problem. This is a problem of almost every blockchain, and Ethereum is no exception.
“When I came up with Ethereum, my first thought was, ‘OK, this thing is too good to be true.’ As it turned out, the core Ethereum idea was good – fundamentally, completely sound.” - Vitalik Buterin, co-founder of Ethereum.
”Make no mistake – Ethereum would never have existed without Bitcoin as a forerunner. That said, I think Ethereum is ahead of Bitcoin in many ways and represents the bleeding edge of digital currency.” - Fred Ehrsam, co-founder of Coinbase.
“Ethereum is enabling a new form of financing in ICOs that is like a massive gravitational pull - dragging every entrepreneur with a sense for opportunity into its blackhole-level gravity.“ - Gil Penchina, American business manager.
Ethereum’s name and logo is a reference to the anime “Castle in the Sky”. One of the characters used a magic crystal to gain energy. In English transcription, it was called aetherium.
Most cryptocurrencies, including Bitcoin, have limits on the number of coins in circulation. Ethereum is free from these restrictions, but no more than 18 million coins can be mined annually.
Ethereum survived the attack on the DAO and the hard fork. In 2016 the DAO project was considered as one of the most promising among the ICOs. But very soon more than 60 million USD was stolen from the network. This led to a fork in Ethereum, where the original unforked blockchain was maintained as Ethereum Classic.
How to get ETH?
One of the best services to exchange your coins to ETH is StealthEX. It’s an anonymous and limitless cryptocurrency exchange with the top concern about users privacy.
✔ Choose the pair and the amount for your exchange. For example BTC to ETH.
✔ Provide the recipient address to which the coins will be transferred.
✔ Move your cryptocurrency for the exchange.
✔ Receive your coins.