Ethereum is a decentralized open source blockchain system that features its own cryptocurrency. Different other cryptocurrencies uses Ethereum’s blockchain platform. It has provided platform to 1000+ smart contracts as well. It is listed with ETH name on trading platforms.
The journey started at 2013, Vitalik Buterin released Ethereum WhitePaper. Then, He with other co-founders managed to collect $18.3 million in Bitcoin, hence in this way Initial Coin Offerings (ICO) of Ethereum was launched in th summer of 2014 at $0.311 and almost 60% of the Ethereum was sold.
The blockchain was officially launched in 30 July 2015 under the prototype name “Frontier”. Since then they have released several updates.
Vision of Ethereum
The goal of the founders are to become a platform where users from all the world write and run their application on their decentralised blockchain. Where they will be guaranteed the resistance to censorship, downtime and fraud.
With their recent updates they are trying to reduce the gas fee charged by them. As there are other coins which are offering dirt cheap price to the users. One of the coin is Bitgert who is seen as if they continue with their pace then they could become a replacement for Ethereum.
You can read our article on Bitgert Coin , where we have cover all the points on why Bitgert will replace Ethereum and can give at least 100x return.
- Vitalik Buterin – a Russian-Canadian, probably the most known face among the all co-founders. He authored the whitepaper in 2013. Before that he also co-founded a Bitcoin News magazine where he also used to write Articles and publish them.
- Gavin Wood – a Britisher, he is a programer and coded the first technical implementation of Ethereum in C++ language and proposed Ethereum native programing language as Solidity. He is the CTO of Ethereum Foundation and the 2nd most important co-founders among all. After leaving the Foundation in 2016, he founded Polkadot an ETH killer.
- Anthony Di Lorio – he underwrote the project during its early stage of development.
- Charles Hoskinson – he played the principal role in establishing its legal framework. After leaving, he created of Cardano, which is also known as ETH-killer.
- Mihai Alisie who provided assistance in establishing Ethereum Foundation.
- Joe Lubin has also helped Eth in its early days and later he founded an incubator named ConsenSys, for startups who are based on Ethereum blockchain.
- Jeffrey Wilcke was a key player in the early days, he was writing a version of the Ethereum in Google Go language which came to known as GETH or Go Ethereum. He left and has founded a Video Game company named Grid Game with his brother.
- Amir Chetrit helped Ethereum Foundation in its early days but stepped away from it earliy into the development. Rumours are there that he was not putting his weight int he project so Buterin kicked him away. ( Leising said it in ‘Out of Ether’ book )
Features offered by Ethereum
- It is the pioneer of the blockchain smart contracts concept.
- By the way if you don’t know what is smart contracts then Smart Contracts are the computer programs which run automatically and process all the required actions to fulfill an agreement between the parties on internet.
- These smart contracts are designed to reduce the cost and speed by reducing the need of trusted intermediaries who are required during the contract. With smart contract reliability has also increased.
- According to Garvin Woods who was the co-founder and its CTO, It was developed as a sort of “one computer for entire planet”, i.e. it can make any program more robust, provide resistance towards censorship and less prone to fraud as they will run on a public nodes which are globally distributed.
- Other than smart contracts, their blockchain is developed in such a way that it is able to host other cryptocurrencies aka ‘Tokens’. This is all done by using ERC-20 compatibility standard.
- There are 2,80,000 + tokens have been launched using the their platform.
- Over 40 of these tokens make their position under top 100 in terms of market capitalisation. Like USDT, LINK, BNB etc…
Disadvantages of Platform
- Very high transaction fees
- Slower speed of transaction, although the speed of transaction is very fast if compared to Bitcoin but there are other like Bitgert who are beating Ethereum badly.
- Scalability issues due to high gas fees and slower speed.
- For doing a transaction using ETH platform user has to bid on the open auction to get picked up by the miners, this is obvious that higher bidder will win so this increases the cost of the user.
Upgrades to counter the ongoing issues on the platform.
The developers at Ethereum Foundation are working to improve the platform, there are plans to transit to proof of stake algorithm and advance and better alternative of proof of work algorithm where miners are not involved unlike POW algorithm. So to meet the goal developers are already working on it.
The latest upgrade of LONDON Hard Fork includes 5 Improvement Proposals namely EIP-3529, EIP-3198, EIP-3541, and most notably EIP-1559 and EIP-3554. Among all the mist important is EIP-1559.
Ethereum Improvement Proposal EIP-1559
With this upgrade one of the major issue that user has to bid before transaction so that they got picked up by the minors, know as ‘First Price Action’ was solved.
With EIP-1559, this biding process is automated and there is a base fee for transactions to be included in the next block. The base fees is calculated on the basis of the congestion or complexity of the network. Yes, there is a priority fees also for those who want to speed up their transaction. This priority fee is paid to the minor for faster inclusion.
EIP-1559 has a fee burning mechanism here what happen is a portion of base fee is burn completely (removed out of circulation) to decrease the total supply of token in the market which in turn reduces the supply and the price will increase in turn.
Only 2 months of the London Hard Fork upgrade, the system has burned approx $1 billion worth of Ethereum which is huge.
This is included in roadmap since inception. Here the plan is to switch to proof-of-stake with its 2.0 update. This update is planned for 2022 so we can see all in all new consensus mechanism.
Then this current Ethereum blockchain will act as a settlement layer for the smart contract interaction on other chains.
Is Ethereum still bullish?
Yes, despite its slow start experts are still bullish and after Ethereum 2.0 upgrade its more likely to rise.
Where I can buy ETH?
Almost every Crypto trading platform offers Ethereum
Is it too late to buy Ethereum?
No, if you belief in the business then you can make better judgment or more important is that it will be an informed decision.
Disclaimer: This is just writer's personal view on the topic with his/her limited knowledge. It is just shared for educational purpose. This post is not meant to give any kind of financial advice to any of its reader, Please do your own research before landing on any conclusion. If you disagree or find anything which is misleading or inappropriate in the above post, then please reach out to us at via our contact page and we will definitely work on it.
Ethereum.org - official website you should visit here