In the world of cryptocurrencies, Bitcoin has always been the famous digital currency. Yet, there is one crypto that has been silently and steadily climbing up the ladder in the cryptocurrency markets. This crypto, known as Ethereum, has become a seismic presence in today’s digital crypto landscape.
Ethereum took a massive leap in 2020 and has seen its value increase exponentially. In fact, at the start of 2020, the value of Ethereum was less than $200, and little over a year later, at the time of writing this article, it’s valued at over $1,600. This represents an almost 700% increase in its value.
Ethereum is not just another crypto but a decentralized blockchain platform that hosts smart contracts. These ‘smart contracts’ are self-executing contracts with terms and conditions that are directly penned into its code, which can include all kinds of applications.
So what’s driving its unstoppable rise in the crypto market? Let’s decode the journey of Ethereum.
The Birth of Ethereum
The concept of Ethereum was first proposed in late 2013 by programmer Vitalik Buterin. Ethereum’s development was crowdfunded in 2014, and the network went live on July 30, 2015. The initial idea behind Ethereum was not just to create a digital currency but to create a “world computer” that would decentralize the existing client-server model.
Smart Contracts: The Game Changer
Ethereum’s trump card in blockchain technology is Smart Contracts. The major differentiating point of Ethereum from Bitcoin and other cryptos is this ability to automate complex applications. The ambit of these applications isn’t limited to cryptocurrency transactions. They can be applied to any situation where a contract must be fulfilled based on pre-set conditions.
DeFi : The Rocket Fuel For Ethereum
Among the many applications, Ethereum’s networks have given birth to one particularly exciting innovation known as Decentralized Finance or DeFi. Imagine being able to borrow money, trade currencies, earn interest, and purchase insurance, all without the need for a bank. That’s the world DeFi is creating.
The majority of DeFi applications are being built on the Ethereum network, leading many to speculate that Ethereum could be the foundation for the future of finance. DeFi’s market cap has grown from $1 billion to $40 billion in less than a year, contributing significantly to Ethereum’s growth.
For more information and updates on Ethereum and DeFi, check out the DeFi Daily News.
Ethereum 2.0: The Game is Going to Get Bigger
Ethereum is on evolving, with plans in place for an important upgrade known as Ethereum 2.0 or Eth2. This version aims at solving two fundamental issues – scalability and security. Eth2 features sharding that will expand the scalability of the network, allowing many more transactions per second, thus catering to a larger audience.
Conclusion
Given these factors, it is safe to say that Ethereum’s rise is not just about captured market trends, but a testimony to its revolutionary technology. Its uniqueness lies in its applicability that spans across an array of sectors including finance, gaming, real estate, and much more. As the Ethereum network continues to develop and mature, and as more developers build upon it, Ethereum is likely to become even more significant in the digital currency landscape. Its surge may be unstoppable.
FAQs
What is Ethereum?
Ethereum is a decentralized open-source blockchain system that features its cryptocurrency, Ether. Ethereum runs smart contracts, which allow a higher level of protection from downtime, censorship, fraud, or third-party interference.
What differentiates Ethereum from Bitcoin?
Ethereum is programmable, which means that developers can use it to build new types of applications. These decentralized applications gain the benefits of cryptocurrency and blockchain technology.
What is DeFi?
DeFi stands for decentralized finance, an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries.
What is Ethereum 2.0?
Ethereum 2.0, also known as Eth2 or Serenity, is an upgrade to the Ethereum blockchain. The upgrade aims to enhance the speed, efficiency, and scalability of the Ethereum network, enabling it to process more transactions and ease bottlenecks.
