Why is the world moving towards investing in Ethereum?

Contents

• 1 Ethereum: A complete system, not just a digital currency!
• 2 How does the Ethereum system work?
• 3 Ethereum and Bitcoin: Are they the same?
• 4 What is the price of Ethereum against the dollar?
• 5 Should you invest in Ethereum?
• 6 references

Ethereum: A complete system, not just a digital currency!

With the great spread of digital currencies and the demand of investors for them, and with the widespread popularity that Bitcoin has gained as a digital currency, the recent popularity of Ethereum is not just a digital currency in itself, but rather more than that!

Ethereum is a complete system and software platform that functions as a decentralized Internet and store for decentralized applications; That is, it is not subject to the control of a single controlling party, although the majority of businesses and companies via the Internet are built on a central system, but this system is operated from thousands of devices around the world.

Such an independent electronic system certainly needs a digital currency to meet the computational needs required to run any application or program, and this is represented by the role of the digital currency Ether (ETH).

The Ethereum currency was launched in 2015 AD in Switzerland by its founder Vitalik Buterin, and it became available in the Arab region for the first time through the (BitOasis) platform in February 2017 AD, and thus the Ethereum currency is just a part of the smart contract applications for Ethereum. ^[1]

How does the Ethereum system work?

Ethereum consists of an internet browser, its own coding language, and a private payment system as well, and it allows its users to create applications on a system called (Blockchain), which is a distributed public ledger technology.

1. decentralized applications (dapps)

In principle, it is similar to smartphone applications and other cloud applications, but it is hosted on the (Blockchain) system and is not managed by a developer or a central entity, and it cannot be removed once it is placed on the (Blockchain). ^[2]

1. Smart Contracts

It is a distinctive type of Ethereum account that is able to own the balance and send currencies, and what distinguishes it is that the user cannot control it, and therefore it is also called self-application tokens. ^[3]

1. Hosting digital currencies in ERC-20

The Ethereum network hosts thousands of other digital currencies or tokens, and these currencies include some of the most famous and largest digital currencies in the world, such as: (Chain Link), (Tether), (Shiba Inu), and others. [4]

Ethereum and Bitcoin: Are they the same?

As Bitcoin is the first stable digital currency, Ethereum, on the other hand, is part of the Ethereum project, and the most important differences between them are as follows: ^[4]

1. Both Bitcoin and Ethereum adopt Blockchain technology, allowing each coin’s history to be examined and confirmed.
2. Bitcoin and Ethereum operate on separate protocols, which means that some transactions that might be allowed on one platform might not be allowed on the other.
3. The Ethereum currency is recognized on the Ethereum network, but it is not widely spread, and in return, Bitcoin cannot be used as a recognized currency in Ethereum.
4. A maximum of 21 million Bitcoins can be created, but the creation of Ethereum could be endless.
5. Bitcoin can be mined using industrial mining farms, while mining for the decentralized currency Ethereum can be done by individuals and users.

What is the price of ethereum against the dollar?

Ethereum was traded for the first time on August 7, 2015 AD, for $2.77 AD, then its value decreased on August 8, 2015 AD to $0.81 AD, and the value remained less than $1 until January 2016 AD. ^[5]

Four years in the trading world has greatly increased the value of Ethereum; In December 2020 AD, the value of the currency was $ 567.6, while the value of Ethereum on March 22, 2022 AD was about $ 2860.64. ^[6]

Should you invest in Ethereum?

There is no doubt that the digital currency market is a very volatile market, so it is not always possible to be certain of achieving profit, but considering Ethereum as a popular currency, the reason for its spread may be attributed to the following: ^[7]

1. It is completely immune from any external interference or the presence of a third party, and this guarantees the complete independence of decentralized applications, and their protection against hacking attacks.
2. Eliminate any possibility of fraud, corruption or forgery, because the principle of the (Blockchain) used in the system is based on consensus, and any change within it must obtain full agreement.
3. The entire platform is decentralized, which means there is no fixed point of failure, and this ensures that work on the system will never stop.
4. The platform provides users with an Ethereum Virtual Machine (EVM), which serves as a running environment for smart contracts, providing users with protection while ensuring that programs do not interfere with each other.

On the other hand, and with the wide popularity achieved by Ethereum, the project is still relatively new, so the Ethereum system has developed its technological performance and has undergone several updates over the years of its development, most of which fall under the periodic update for development and security purposes, such as (Homestead) and (DAO) updates. and (Altair). ^[8]

Experts also advise keeping an investment of less than 5% of the total storage portfolio, investing in what can be lost, and not at the expense of important financial obligations. ^[9]

References

1. ↑ Jianing Wu (2021-7-15), “Ethereum’s History: From Zero to 2.0”، wisdomtree, Retrieved 2022-3-28. Edited.
2. ↑ “Ethereum-powered tools and services”, ethereum, Retrieved 2022-3-28. Edited.
3. ↑ Joshua (2022-1-10), “Introduction to smart contracts”، ethereum, Retrieved 2022-3-28. Edited.
4. ↑ “?What is the difference between Ethereum and Bitcoin”, plus500, Retrieved 2022-3-28. Edited.
5. ↑ Emma Newbery (2021-7-21), “If You Bought $100 Worth of Ethereum at the Start, Here’s How Much You’d Have Today”، fool, Retrieved 2022-3-28. Edited.
6. ↑ “Ethereum (ETH) price per day from August 2015 to March 28, 2022”, statista, Retrieved 2022-3-28. Edited.
7. ↑ Ryan Haar (2022-1-13), “How to Buy Ethereum, and What You Should Know Before You Invest”، time, Retrieved 2022-3-28. Edited.
8. ↑ “The history of Ethereum”, ethereum,2022-3-23، Retrieved 2022-3-28. Edited.
9. ↑ “EVM Explained – What is Ethereum Virtual Machine?”, moralis,2021-7-23، Retrieved 2022-3-28. Edited.