Ethereum (ETH) Basic Information
Ethereum stands out as an open-source project evolving as a platform for decentralized applications (DApps) and smart contracts.
| Key Metric | Details |
|---|---|
| Supply Cap | No hard cap |
| Consensus | Proof-of-Stake (PoS) |
| Launch Date | July 30, 2015 |
| Central Entity | None |
| Founder | Vitalik Buterin |
Note: Ethereum (ETH), conceptualized by Vitalik Buterin, emerged in 2014 as a cryptocurrency with the ticker ETH. It ranks among the top altcoins by market capitalization, consistently trailing only Bitcoin.
👉 Explore Ethereum's historical price trends and future prospects
How Does Ethereum Differ from Bitcoin?
- Purpose: Bitcoin serves as a payment system, whereas Ethereum functions as a development platform for DApps.
Consensus Shift: Both initially used Proof-of-Work (PoW), but Ethereum transitioned to PoS post-Ethereum 2.0 upgrade.
- PoW Drawbacks: Energy-intensive mining competitions.
- PoS Benefits: Validators stake 32+ ETH to approve transactions randomly, reducing energy use by ~99.95%.
Ethereum’s Market Capitalization
Per CoinMarketCap (August 2024):
- ETH Market Cap: ~$294.6 billion (2nd after Bitcoin’s $1.17 trillion).
- Comparable: Mastercard (~$410B), Apple (~$3.285T).
| Rank | Cryptocurrency | Market Cap |
|---|---|---|
| 1 | Bitcoin (BTC) | $1.17 trillion |
| 2 | Ethereum (ETH) | $294.6 billion |
| 3 | Tether (USDT) | $118 billion |
Ethereum (ETH) Key Features
1. Smart Contracts
Self-executing agreements on blockchain (e.g., automated ETH transfers after 1 year). Enhances efficiency in trades, real estate, and more.
2. DApp Development Platform
Democratizes decentralized app creation, lowering barriers for developers.
3. ERC-20 Token Standard
Simplifies token issuance on Ethereum’s blockchain (e.g., USDT, DAI).
4. Enterprise Ethereum Alliance (EEA)
Backed by Microsoft, JPMorgan, and Toyota to drive business adoption.
5. Ethereum 2.0 Upgrades
- The Merge (2022): PoS transition.
- Shard Chains (Pending): Scalability fix via parallel processing.
👉 Learn how Ethereum 2.0 reduces energy consumption
Ethereum’s Historical Milestones
- 2014: Token sale (~32,000 BTC raised).
- 2015: Frontier launch (developer phase).
- 2016: Homestead upgrade; "The DAO" hack ($50M stolen → hard fork created Ethereum Classic).
- 2017–2019: Metropolis upgrades (privacy via zero-knowledge proofs).
2020–2023:
- Beacon Chain: PoS prep.
- Merge: Full PoS transition.
- Shapella (2023): Enabled staking withdrawals.
Ethereum’s Price Volatility
| Year | Annual Change |
|---|---|
| 2017 | +9,239.67% |
| 2018 | -82.42% |
| 2021 | +398.75% |
| 2022 | -67.50% |
2024 Monthly Snapshot:
- February: +46.45%
- August: -22.25%
FAQs
How to check Ethereum gas fees?
Use ETH Gas Station for real-time rates.
How to stake ETH?
Requires 32 ETH via platforms like SBI VC Trade or Bitpoint.
ETH vs. BTC?
- ETH: No supply cap, smart contracts.
- BTC: 21M cap, "digital gold."
All-time high price?
~$4,800 (2021).
What is ERC-20?
Standard for Ethereum-based tokens (e.g., USDT).
Purchasing Ethereum
Buy ETH through registered exchanges compliant with local regulations.
Disclaimer: Cryptocurrency investments carry risks. Conduct independent research.