What is Ethereum (ETH)? Everything you need to know about ETH

Ethereum (ETH) is one of the most advanced blockchain technologies today, providing the foundation for thousands of decentralized applications and decentralized finance (DeFi).

So what specifically is ETH token? What outstanding features and characteristics does this token have? Let’s find out through the following article of AZcoin.

What is Ethereum (ETH)?

Ethereum is a decentralized open source software platform used to run decentralized applications, also known as smart contracts. Developed by Vitalik Buterin and a team of developers in 2013, Ethereum has become one of the world’s most popular blockchain platforms, playing a key role in driving the growth of the blockchain industry. 

Who is the founding team of Ethereum?

The Ethereum founding team includes the following individuals:

• Vitalik Buterin: A proponent of Ethereum in late 2013, Vitalik Buterin is a cryptocurrency researcher and programmer.
• Mihai Alisie: One of the original members of the Ethereum team.
• Anthony Di Iorio: He has dedicated his time and energy to building a team capable of turning the Ethereum idea into reality.
• Charles Hoskinson: Was Ethereum’s CEO for the first six months of its existence and then founded IOHK, where he served as CEO.

Additionally, there are other individuals such as Gavin Wood, who contributed to the development of the Solidity programming language, and Jeffrey Wilcke, who participated in the development of Ethereum’s Go client.

History of Ethereum formation

• 2013: ETH was proposed by Vitalik Buterin (Russian-Canadian) – a cryptocurrency researcher and programmer.
• 2014: Announced the core team and opened “pre-sale”.
• 2015: The system officially launched on July 30, 2015, with more than 11.9 million ether coins already mined for supply and resale to donors.
• 2016: ETH split into two separate blockchains, ETH and ETH Classic.
• 2019: Istanbul upgrade took place successfully and became the 2nd largest coin in the world.

How Ethereum Blockchain Works

Ethereum operates on a network of computers called Nodes, running the Ethereum Client software and the Ethereum Virtual Machine (EVM) virtual machine program. EVM executes smart contracts written in Solidity. To execute transactions and contracts, the network requires Gas fees, paid in Ether (ETH). Initially, Ethereum used the Proof of Work (PoW) mechanism, then switched to Proof of Stake (PoS) through The Merge event on September 15, 2022. Users can check network activity using the Etherscan tool.

Ethereum’s ecosystem

Here are some popular token standards on Ethereum:

• ERC-20: This is the most popular standard, used for fungible tokens. ERC-20 tokens can be easily traded and interacted with other wallets and services.
• ERC-721: This standard is used for non-fungible tokens (NFTs), each of which has a unique identifier and cannot be divided.
• ERC-1155: A more flexible standard, allowing a smart contract to manage multiple token types, both fungible and non-fungible.
• ERC-777: Is an upgraded version of ERC-20 with additional features such as an enhanced token transfer protocol and interoperability with other smart contracts.

Pros and cons of ETH

Pros

• ETH has no third-party intervention.
• ETH transactions are very fast because they use the GHOST protocol.
• Transaction fees are calculated based on volume, bandwidth, storage
• Many large, famous investors support Ethereum such as Microsoft, Intel, Red Hat.
• The ETH community is growing around the world.
• ICO projects using ETH are sold very quickly.
• Ethereum’s system is automated.

Cons

• Ethereum has seen hacks such as the DAO hack in 2016 due to a reentrancy bug, which resulted in $50 million being stolen.
• Dependency on the Solidity programming language.
• Ethereum may have difficulty scaling and transaction speed compared to growing market demand.

Basic information about ETH token

Technical information

• Name: Ethereum
• Ticker: ETH
• Blockchain: Ethereum
• Token standard: ERC-20
• Token Type: Utility & Governance
• Circulating supply: 120.127.448 ETH
• Total supply: Unlimited

Price of ETH coin today (May 21, 2024)

Today, the live price of each Ethereum is 3,684.76 US$ (ETH / USD) with a current market capitalization of $442,019,670,312 US$. The 24-hour trading volume is 32,777,731,537 US$. Ethereum price fluctuated +19.5% in the past 24 hours and ranked 2nd on CoinGecko today.

Which exchange to buy and sell ETH Coin?

To buy and sell ETH coins, users can use best crypto exchanges, such as Binance, Coinbase, Kraken, Huobi, OKX, SOL,….

Wallet stores ETH tokens

To safely store ETH tokens, users can use cryptocurrency wallets such as MetaMask, MyEtherWallet, Coin98 Wallet, Ledger Nano S, Trezor, MetaMask, My Crypto and exchange wallets.

You can also discover more information about other potential coins such as:

• Solana coins
• Usdc coins
• Xrp coins

Should you invest in ETH Coin or not?

• Ethereum is still holding the 2nd position of the cryptocurrency market.
• Ethereum completed The Merge upgrade on September 15, 2022, which is one of the hottest events in 2022.
• Ethereum has many smart applications.
• Backed by Fortune 500 companies: Enterprise Ethereum Alliance (EEA) is a group of more than 200 companies, such as Intel, Microsoft, JP Morgan and others that work together to further develop Ethereum technology.
• Long-term growth with the ability to expand and be highly profitable in the future.

According to the Evaluation process, we think you should invest in Ethereum if you are looking for one coin among thousands of coins in the cryptocurrency market to invest.

The Future of Ethereum

With the mission of building a decentralized internet and supporting decentralized applications, Ethereum is continuing to develop and expand its ecosystem. Improvements to the transaction validation model, scalability, and security are all being pushed to enhance performance and user experience on the platform.

With the growing adoption and growth of DeFi, NFTs, decentralized gaming, and many other applications, Ethereum has the potential to become one of the leading blockchain platforms in the future.

Summary

Hopefully all the information shared above has helped you get a general view of ETH coins. All information is for reference only, not a call for investment. You can see more in Introduce AZ Coin section.