Ethereum (ETH) – main information and history of creation
ETH is the main Bitcoin competitor. It is gradually catching up with the market leader and it is becoming very popular among users and investors. Tokens are called “Ether”. The capitalization of ETH is constantly growing. At the moment, this figure is equal to $ 100 billion.
The project was created in 2013 by a talented 19 year old boy Vitaliy Buterin, who in his young years, together with a team of like-minded people, founded a journal about Bitcoin. He already knew a lot about the cryptocurrency platforms and actively participated in the development of the project to create Ethereum. As a young man from Kolomna managed to achieve such successes, still remains a mystery. He was able not only to create a blockchain system, but also assembled a team of developers to launch the Ethereum platform.
The main feature of Ether is the use of smart contracts. This is a unique software that runs when certain events are activated. For example, two people participated in an online tournament, and one of them wins – a smart contract starts and distributes the prize money.
Fundraising for the launch of the Ether began in early 2014. Organizers managed to collect more than 30 thousand bitcoins, which is quite a lot. Buterin started to create the project, and the first batch of coins was released in the summer of 2015. Then they started the blockchain. The first protocol was named Frontier. Vitali not only developed, but also actively popularized Ethereum. Thanks to this, he managed to enlist the support of large investors, including Microsoft.
In spring of 2016, the protocol was changed, and the second variation was called Homestead. The popularity of Ethereum continued to grow and its cost increased by 250%, and by mid-2016 the price increased 10 times. Of the main Bitcoin competitor started talking about, what caused a next explosion of popularity.
What happened with ETH in late 2017?
The phenomenal rise in prices for the currency, which no one knew a couple years ago, is due to popularization. In 2017, a popularity of the cryptocurrency from the TOP 10 entered a new round. If at the beginning of its journey the Ethereum coins cost about $ 10, then at the beginning of 2018 the prices jumped to $ 750. This is an unprecedented growth of the rate, which was accompanied by widespread excitement. All rushed to acquire this asset, and this further increased the cost of the crypto-coin.
What is a reason for the increase in value? There are several key reasons:
- Positive reputation. Unlike Bitcoin, reviews about this project are mostly positive.
- Cryptocurrency boom. Due to the fact that Ether managed to stay in TOP 10 of the best world cryptocurrencies, it got on the wave of “haypah”. On the background of the general popularization of crypto-coins, Etherieum began to be in demand.
- Blockchain. The founder of the project, Buterin, was the first to put forward a proposal to use blockchain. Blockchain allows you to use third-party applications. Initially, the founder pursued a goal of creating an improved version of Bitcoin.
- Speed. Ether, as well as lightcoin, is popular because of the high speed of creating blocks.
The most obvious reason for the unprecedented price increase was a strong growth dynamics of Bitcoin and Litecoin. A huge number of people became interested in a situation in the digital coin market. The cost of the token on January 26 is 1018 dollars.
What will happen with Ethereum in 2018?
Is ETH waiting for a price increase? Will it be possible to earn money on this coin or is it better not to buy this financial instrument? Practically all experts unanimously tell about a direct relationship between Ether and Bitcoin. The successful launch of the cryptocoin is connected with the successful operation of Bitcoin. Legal entities and ordinary users began to buy the tokens.
The growth in the value of coins is associated with the acquisition of large blocks of shares by companies. Also, a high popularity is associated with the decentralization of these “money”, but this does not accurately determine the price movement. If you buy ETH, then you will not have any guarantees that the rate will steadily move up. However, this does not stop a huge number of people from buying Ethereum.
Predicting the position of the schedule is extremely difficult, when everything is based only on the mood of people. Indeed, more recently, experts predicted bitcoin cost of 3 thousand dollars. And how much is it today?
Primary expert opinions about Ethereum
- It will grow. The total share of the crypto currency will increase, but experts say that there will be no rapid growth. The curve of the uptrend will be more even than in the case of bitcoin;
- Government projects. If any country/goverment will be interested in this currency, then the price is expected to increase by 50-100%;
- Bitcoin. Further explosions of bitcoin will lead to an increase in the population’s interest in ETH.
Also, the rise in value is affected by certain events in the world of cryptocurrencies. Consider the next meetings and conferences
- Ethereum Community Conference. The conference, dedicated to ETH, will be held from March 8 to 10 at the Conservatory of Arts in Paris. As the speakers will be the founder of the Efhereum project, as well as the leaders of such major organizations as Oaken Innovations, Ledger, Metamask and so on.
- EthDenver. The meeting of programmers in the US will be held on February 16-18. Decentralization and technology of the Ether blockchain will be discussed. Everyone who wants to be a part of a “decentralized future” is invited to the meeting.
How do these events affect the cost of Ether? One word is popularization. These events will be displayed in all media, and people will become even more interested in Ether.
Is it possible to mine ETH?
It is possible, but if you do not have the necessary equipment and are not ready to invest a lot of money in this process, then you can hardly earn a lot. Mining is done by using the computing power of your computer. To do this, it’s enough to understand what kind of devices you need to use.
We need to run the hashing algorithm and for this we have to take a large amount of information that will be compressed to a certain size. In the case of Ethereum, the algorithm is called Ethash – it functions on the nonce code. It creates a binary number if the last block of the chain is found, the hash function creates a unique value. The main task of the equipment is to guess nonce values.
This can only be done by selecting values and it is impossible to guess it accidentally according to the principle of cryptogaphy. The reward for the guessed value will receive the most powerful computer that can decrypt the block. As a reward, he receives 5 Ether units. The computing speed of your equipment determines the amount of cryptocurrency you will receive.
There are three ways to mine
- Video card. An outdated method that is unlikely to make a lot of money;
- Many video cards or processors. Mining farms increase processing power;
- ASIC. It requires a lot of electricity and is expensive, but it has very high processing power.
If you do not have a powerful video card, then you can use mining pools. The most popular are DwarfPool, Nanopool and CoinMine.
How to buy ETH and where is it stored?
One can buy ETH through exchanges. Consider bestchange.com
- You must have a currency to which you are exchanging ETH;
- On the left side of the website you choose a direction, for example, Wire USD/ ETH;
- On the right side of the website, the options are displayed where you can exchange.
- Click on the link and go to the exchange website
- Follow all the steps and get the ETH to your wallet.
Now let’s look at how to enter or withdraw the currency on Binance exchange
1. You need to register;
2. Pass verification;
3. To replenish a cash account on the stock exchange, you must enter the “Active” tab;
4. A list with the possibility of replenishment will be displayed – 44 types of crypto-currency are available.
It is better to keep ETH on the wallet or inside the account on the exchange. One of the best examples is Exmo.
Conclusions – is it worth buying ETH?
Once again, we note that no expert will be able to tell you exactly whether it is worth buying the coin. However, Ether gives good hopes and in the near future the price growth can please investors. The crypto currency boom has just begun and many believe that Ethereum is waiting for a great future.