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10 Random Facts about Ethereum I CoinDCX.

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Snapshot:

  • The beginning of Ethereum.
  • 10 random facts about Ethereum.
  • The Anime influence on ETH.

While we talk about alt-coins, the first name that pops up is Ethereum. It is most definitely the most common altcoin to invest in. Among the 500+ cryptocurrencies, ETH is the only one that can beat Bitcoin with its market cap value. 

Soon after the release of Bitcoin, Vitalik Buterin co-founded the online news website Bitcoin Magazine in the same year, writing hundreds of articles on the cryptocurrency world. Vitalik believed that Bitcoin was one of the many possibilities of blockchain technology and it needed a scripting language for further developments in its applications. He released a white paper in 2013 describing an alternative platform designed for any type of decentralized application that developers would want to build. The system was called Ethereum.

Ethereum is a public blockchain-based peer to peer networking software with a built-in programming language that allows developers to build and deploy decentralized applications using smart contracts. It provides a decentralized virtual machine, the Ethereum Virtual Machine (EVM), that executes contracts used to transfer money and develop and run various kinds of applications that are accessible anywhere in the world.

Eth is one of the most loved cryptocurrencies within the crypto ecosystem. Traders, investors and everyone almost always buy Ethereum in bulk or huge amount, knowing its importance and its potential. That being said, here are some of the facts regarding Ethereum that you may or may not know. 

10 Random Facts about Ethereum.

  • Ethereum was a crowdfunded project.
  • ETH being a cryptocurrency is also an ecosystem for decentralised applications.
  • Ethereum is supported by large businesses. 
  • Attempts at PoS.
  • ETH is a centralized decentralized currency.
  • Ethereum was not always the second most famous cryptocurrency.
  • ETH does not have a definite availability.
  • Change is constant in Ethereum.
  • Ethereum is divided into two blockchains. 
  • Ethereum was inspired by Anime!

Ethereum was a crowdfunded project.

The idea of Ethereum was born at a time when the world still has not yet encountered the ‘cryptocurrency boom’. The idea was conceptualised in 2013, by Vitalik Buterin who co-founded the online news website Bitcoin Magazine. Though the idea was conceived, there was a lack of funding to take the whole ideation forward. 

As many artists and tech companies in recent times are raising funds via crowdfunding, the ETH idea was fueled similarly. The lack of resources made it a dream come true project for everyone who is rooting for the idea of a decentralized world.  

ETH being a cryptocurrency is also an ecosystem for decentralised applications.

Ethereum is not just a cryptocurrency. The code used within the programme has turned it into a massive ecosystem of its own. An array of various decentralized programmes, games or social media apps, are now developed using Ether. 

Adding to that, the Ether community has made huge strides in developing and creating an entire community dedicated to developers around its technology. There’s a lot of help and support available if anyone wants to work with Ethereum. 

Did you know?

The Ethereum Alliance, a collective that involves blockchain startups and major businesses, has dedicated itself to developing and promoting Ethereum—and they love developers. (Source: Vocal.Media)

Ethereum is supported by large businesses. 

It is not only the programmers and investors who have shown their interest in Ethereum and is looking for ways to use the functionality. Massive tech companies have also found the use of Etherium in their respective fields. Some of the most famous companies are Samsung SDS, Toyota Research Institute, Banco Santander, Microsoft, J.P.Morgan, Merck GAA, Intel, Deloitte, DTCC, ING, Accenture, Consensys, Bank of Canada and BNY Mellon. 

Attempts at PoS.

Ethereum 1.0 had been struggling with speed, scalability and security concerns. But Eth 2.0 or serenity with its upgrade aims to solve the scalability and security concerns along with providing faster transactions and lower fees. This upgrade involved re-engineering the entire Ethereum platform. It will also shift Ethereum’s current mining model to a staking model.

The major difference between Eth 1.0 and Eth 2.0 is the use of the consensus mechanism. Eth 2.0 uses Proof-of-Stake (PoS) while Eth 1.0 uses Proof-of-work (PoW).  PoS is less energy-intensive as compared to PoW and crypto is used for verifying a transaction by the transaction validators as opposed to miners.

Ethereum 2.0 will enhance scalability as it has shard chains that allow it to conduct up to 10,000 transactions per second whereas Eth 1.0 can support only 30 transactions per second. The upgrade rollout is scheduled to happen in phases; phase 0, phase 1 and phase 2. Phase 0 has already been rolled out in December 2020 with the implementation of the beacon chain.

ETH is a centralized decentralized currency.

Although bitcoin was originated as a decentralised cryptocurrency, over time crypto has become much more centralised. But no blockchain network is completely decentralised. Decentralised Finance or DeFi has emerged massively which is based on the Ethereum network and smart contracts. With its new upgrade Eth 2.0,  it is now being touted to be more decentralised. As PoS does not require special equipment, staking is considered as a smaller barrier to entry, hence more decentralised. 

However, with smart contracts which display data gathered from external sources, it is possible to populate the web interface with faulty information if a DApp server is infiltrated. Also, most of the Ethereum network is hosted on cloud services, making it more centralised. As per the Ethereum website, a naïve way to solve Ethereum’s problem is to make it more centralised but that would defy the purpose of the Ethereum network as it is decentralization that provides Ethereum openness, data privacy, security and censorship resistance.

Ethereum was not always the second most famous cryptocurrency.

It is a common assumption for people who are new to the crypto space to assume ETH has always been the second most common cryptocurrency. The assumption is not at all true. It is an amazing advantage though, don’t you agree? 

Before Ethereum was invented, Litecoin and other Bitcoin mining alternatives had their spot as second to Bitcoin. Since the onset of Ethereum, it has gained over 2,800% in value—and continues to impress investors.

ETH does not have a definite availability.

Unlike how we know there cannot be more than 21 million BTC ever, there is no saying how many Ethereum is there. Neither are we certain of how many are already in use, nor are we certain of how many more there can be. The one limitation that ETH has is that only 18 million ETH can be mined in a year. 

This not only makes Ethereum the best alternative for Bitcoin but also a source of steady income for any investor who is looking for one. 

Change is constant in Ethereum.

For miners, all the facts about Ethereum listed so far don’t matter as much as this one. Right now, Ethereum is a mineable cryptocurrency that has a faster mining rate than Bitcoin—but that will eventually change. Developers are strongly considering switching to an algorithm called Casper. Casper would eliminate “Proof of Work” for the most part, which would make mining (potentially) less profitable.  (Source: Vocal.Media)

Ethereum is divided into two blockchains. 

All cryptocurrencies have one blockchain upon which they work. But, the Ethereum ecosystem was divided into two different blockchains in 2016. The two blockchains are known as Ethereal and Ethereal Classic

Ethereum was inspired by Anime!

Is this not fascinating? The alternate favourite of Bitcoin was inspired by an anime?  It is Hayao Miyazaki, a Japanese animator, director and manga artist whose work, “Laputa: Castle In The Sky”, served as an inspiration for Vitalik Buterin.

One of the anime heroes used the magic crystal Aethereum, which made it possible to extract energy from the air. The crystal of the flying stone was not only a source of energy but also indicated the path to the cherished goal of the heroes. (Source: info.exmo)

It can be concluded that Ethereum is a legend of its league. Though it is a distinct possibility of this particular kind of a decentralized distributed network to become fundamental. It is still owing to the very same type of network that has made it possible for all subsequent Blockchains to lay a solid foundation. It has also opened sources and made opportunities for developing smart applications accessible for all crypto enthusiasts.

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