Bitcoin might be the first cryptocurrency that triggered the birth of blockchain technology, but Ethereum is the digital currency that expanded its uses and pioneered the construction of a global network that supports an interconnected marketplace for decentralised applications.
Is Ethereum better than Bitcoin?
Although mistakenly associated with Bitcoin, blockchain technology has various applications, many of them powered by the Ethereum blockchain. A few years ago, one would need complex mathematics, cryptography, and coding education to develop blockchain applications. But as technology evolved, the times have changed, and applications can be developed and deployed faster than ever. Ethereum makes everything possible because it provides developers with the necessary tools to build decentralised applications.
How to buy Ether
Users need Ether to take advantage of any of the above use cases, so it’s essential to discuss how they can buy Ethereum’s native token.
- Online exchange platforms
If you want to have a look at Ethereum price evolution, register on an online exchange platform like Binance that allows them to buy and sell digital currencies for a fee. They can buy Ethereum with bank transfer from these platforms with traditional currency (euro, dollar, pound) via a debit card, credit card, or bank transfer. It’s important to mention that most exchange platforms follow the Know-Your-Customer regulations, so they require the buyer to confirm their identity before completing a transaction.
Trading platforms
Another easy way to purchase Ethereum is to use a trading platform that connects buyers and sellers with the help of an intermediary. Trading platforms enable crypto users to trade a digital currency for another.
Peer-to-peer
The buyer must get in touch with the seller to negotiate the price for the token. Because there is no intermediary involved in the process, this method is fee-free. There are some places around the world, like New York and Toronto, where investors meet regularly to trade Ethereum.
Let’s find out more about Ethereum’s background and use cases
No one can deny that Bitcoin was an innovation for the decentralised network, proving that digital currencies can be life-changing achievements. However, Ethereum was created to expand Bitcoin’s vision of decentralised payments enabling the creation of an online network that connects users to a marketplace of decentralised applications, also known as dApps, enhancing user control, security, and efficiency. Ethereum has introduced the concept of smart contracts on the market for the first time, providing the sector with a unique combination of features meant to change how advertising, gaming, identity management, supply chain management, and even web browsing work.
Ether, the native cryptocurrency of the blockchain, powers Ethereum and enables developers to create applications and tokens with the help of smart contracts. The ERC-2- token standard is commonly used for developing ETH-based digital tokens. The blockchain’s smart contracts are self-executing contracts that enable users to perform, verify, and enforce transactions on the Ethereum blockchain and the innovation that brought Ethereum to the public’s attention.
Ethereum is a permissionless blockchain that requires no oversight from a third party to create and develop an application and encourages experimentation. Until now, developers have created thousands of dApps on the Ethereum ecosystem and generated profits of billions of dollars.
Ethereum use cases
Decentralised autonomous organisations
Decentralised autonomous organisations are an early use case of the blockchain that functions without the implications of a central authority. However, decentralised autonomous organisations follow specific rules coded in their software and are governed by a series of administrative decisions the stakeholder community establishes. Even if it was one of the first use cases tested on the blockchain, it still remains popular nowadays.
Ethereum token sale
Initial Coin Offerings function similarly to traditional Initial Public Offerings. Ethereum has enabled start-up fundraising, which was paramount for crypto and blockchain growth throughout 2017 and 2018. The network used crowdfunding to power its protocol’s development in 2014, a novel strategy at the time. However, the Ether token registered maximum growth during the ICO stage. The change in how crypto start-ups gather funds triggered a paradigm shift in how innovative businesses attract funding.
Initial Coin Offerings drove the public’s attention toward Ethereum and the crypto environment; however, unfortunately, some of it was negative. When the phenomenon was booming, the market witnessed some scams, ICOs that were not well developed, and ICOs that failed to reach their objectives. Statistics show that less than 50% of ICOs survived more than four months after the first token sale. However, a couple of crypto projects that relied on ICOs to attract funding are thriving even nowadays.
Enterprise Ethereum
This use case powers the creation of custom networks and software based on the Ethereum blockchain developed to serve private organisations. Enterprise Ethereum networks are permissioned, so the clients manage the users, validators, and architecture. The Enterprise Ethereum Alliance is formed by more than 200 private organisations (such as Microsoft, Mastercard, J.P. Morgan, and Samsung Group), which test different versions of Ethereum networks for enterprise purposes.
Non-Fungible Tokens
Non-Fungible tokens are quite trendy at the moment as they’re indivisible, unique, and scarce digital assets people can use in art, gaming, and other sectors. The NFT phenomenon started in 2017 when CryptoKitties’s digital cat collectables were launched, proving that the technology’s applications are multiple.
What does the future hold for Ethereum?
In September 2022, Ethereum registered a major upgrade as it transitioned from the proof-of-work system to the proof-of-stake one. The blockchain now uses Casper to implement the new protocol. Proof-of-stake is eco-friendly and essential for sharding. Ethereum has facilitated the rise of two popular sectors worth multi-billion dollars non-fungible tokens and decentralised finance nowadays. NFTs and DeFi are performing well even if Ethereum 1.0 registered some shortcomings. Crypto experts think the two sectors will continue to evolve in the future because they rely on an efficient and scalable ecosystem.
Ethereum also impacts how people use the Internet because decentralised apps are changing how the Internet of information functions. The blockchain’s transparency and immutability make it ideal for creating digital products and applications that must run on an open ecosystem.
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Jodi Williams
