Ethereum (ETH) Research

Ethereum (ETH) Research Details

Ethereum (ETH) Ethereum

INTRODUCTION

Ethereum is a distributed blockchain platform for smart contracts and space-divided applications. Ethereum comes at 2nd most important and valuable cryptocurrency after Bitcoin, within 2 years of its release. The Ethereum network gained a lot of interest around the world when China claimed that it is the best blockchain network ever created. Ether (ETH) is a native cryptocurrency used in all transactions in the Ethereum blockchain. 


FOUNDER

Ethereum was founded by programmer Vitalik Buterin in 2013. Other founders include Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin. Its network consists of open, internationally distributed computing infrastructure, which makes programs called smart contracts. This network is powered by ether (ETH). A smart contract is actually a code that binds two parties to an agreement and can accomplish itself, without a mediator.

This performance earned him the nickname "the computer of the world"(technically known as the Ethereum Virtual Machine, or EVM) because it works beyond the payment method or the value store - which Bitcoin does. The EVMenvironment enables developers to build customized applications across the board, from social media to games to banking, such as an app store that can be controlled by Apple or Google.


REASON TO BUILD THE PROJECT

Vitalik Buterin built Ethereum as for him, Bitcoin’s scripting language was very limited in functionality. Buterin published Ethereum's first white paper later in 2013, defining a distributed computing platform for smart contracts and building classified applications (dApps). In 2014, Buterin and other early participants established the Ethereum Foundation, a non-profit organization dedicated to Ethereum research, core protocol development, and ecosystem growth. The primary function of the foundation was to manage the Ethereum crowdsale, which raised 31,529 BTC (~ $ 18 million at the time) in exchange for about 60 million ether and used available funds to fund the initial development of the network.

Buterin compared bitcoin to a pocket calculator that "does one thing right," while saying that Ethereum is like a smartphone with many apps to use. That is the core of Ethereum. Like bitcoin, it is built on blockchain technology - actually a distributed computer network that records all cryptocurrency activities. But people can build apps on top of Ethereum, which is not possible in Bitcoin.


BASE OF PROJECT

Ethereum represents a blockchain with the built-in programming language of Turing. Provides a modest background that allows anyone to create their own copyright laws, job formats, and transformation functions. This is done by involving smart contracts, a set of confidential rules that apply only if certain conditions are met.

Ethereum network compatibility is based on the modified GHOST protocol (Self-SensitiveTimber Tree). Designed to address the issue of older blocks in the network. Older blocks can occur if one group of miners integrated into a mining pool has more computing power than the others, which means that blocks from the original pool will contribute significantly to the network, thus creating the issue of centralization. The GHOST protocol incorporates those older blocks into statistics for the longest series.


USE CASE

Some real-world use cases of Ethereum are:

Decentralised Finance (DeFi)- Decentralised finance applications, or "DeFi," are among the most promising real-world applications for Ethereum. This involves the creation of stablecoins, loans backed by smart contracts, and decentralised exchanges.


In payments- Commerce is the foundation of the global economy and Ethereum has the potential to significantly change that by allowing so-called "smart contracts" to be established on Ethereum.


Data storage- Ethereum's blockchain technology can be used to rapidly and securely transfer data encrypted across millions of computers.


NFTs- NFTs have a single owner and are secured by the Ethereum Blockchain. A new NFT cannot be made by copying and pasting an old one, and no two NFTs can be identical. They are compatible with anything developed on the Ethereum platform.


CURRENT RUNNING PROJECTS

Currently, there are more than 3,000 projects running on the Ethereum blockchain, some of them are:


Makerdao

Decentraland

Uniswap

Unstoppable Domains

Chainlink

Kyber Network

Axie Infinity

Open Sea

Aave

Liverpeer

Compound

Status

Wrapped Bitcoin

Sushiswap


MAJOR TIMELINES

·       Ethereum is bringing an upgrade named Arrow Glacier. This will be delayed in June 2022 by the start of the "mass bombing" that could halt the mining of the Ether (ETH) token.

·       Currently Ethereum uses Proof of Work model and now it is shifting to Proof of Stake model.

·       Ethereum2.0 is not a new cryptocurrency, but a new model of the existing currency which will decrease the energy consumption by more than 99%, and increase thetransaction per second speed from 15-30 (currently) to 1,00,000 transactionsper second.


MAJOR NEWS AND EVENTS

DATE

NEWS/EVENTS

IMPACT

05/05/2022

Terra LUNA crash sparks caution in the crypto market

-23% Decrease

18/01/2022

Crypto.com User Accounts Breached by Hackers, ETH Worth $15 Million Stolen From Exchange

-24% Decrease

05/08/2021

Ethereum has just launched a major transformation called the ‘London hard fork’ - which is why it is such a big deal.

+31% Increase

19/05/2021

China has barred financial institutions and payment companies from providing any services related to cryptocurrency transactions.

-40% Decrease

27/04/2021

European Investment Bank Issues $ 121M Digital Notes Using Ethereum.

+28% Increase

 


CONCLUSION

Ethereum is a technology that completely changes the way transactions are made. Thanks to smart Contracts, it is possible to change all existing contracts in order to improve performance security, limit costs, and distribute the land. Apps are almost limitless and we are still in their initial phase.

When talking about usage and development, Ethereum is more mature with a higher transaction value than Bitcoin. We can safely believe that Ethereum will continue to grow and remain one of the biggest players in the market because more than 50% of the top 200 projects in terms of market money are spent on Ethereum. In the next few years, Ethereum could be bigger than Bitcoin and accepted for use by big organizations like Google and Facebook. This is due to its wide range of applications.


DISCLAIMER

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto products are currently unregulated and subject to market risk. Please seek independent financial advice or do your own research before investing.