Over the past few years, Ethereum has been one of the most stable coins in the market. From December 2016 to December 2017, less than a year ago, Ethereum’s value rose from around $ 8 to over $ 1,000. However, this sudden increase is not due to the fact that this is a new coin that no one knows about; Rather, its popularity stems from the ease with which it is possible to program smart contracts on its blockchain. The system was created by Vitalik Buterin who saw Bitcoin as an inefficient and expensive solution for payments and wanted something better.
Ethereum has been the second most stable coin in years. It wasn’t until early 2017 that XRP (Ripple) overtook Ethereum to take its place for a short time before coming back, but since then it has not moved out of second place. It is currently valued at around $ 4,200 per coin with a market cap of over $ 400 billion.
The reason it was built in the first place
Vitalik Buterin, a Russian-born Canadian programmer, launched Ethereum to create a platform where smart contracts could be easily entered into and executed by anyone in the world. His idea was to use a coding language that would be familiar to programmers and make coding easier for them. He also wanted to add more features like Turing completeness (the ability to run an infinite number of commands depending on the length of the contract) and make sure programmers didn’t have access to each other’s information. others.
The Ethereum network allows developers to create decentralized applications, called “Dapps”
Dapps is a decentralized version of an app. In traditional applications, all information is stored on a central computer and accessible by users from their computers.
In decentralized applications, all information is decentralized and each user can create their own copy of the application which updates as new information arrives. This means that if a developer creates a decentralized version of Twitter, every time a tweet is posted all of the users who downloaded the app will update accordingly.
Dapps can be used for various purposes such as gambling, social media platforms or even financial services.
It is also possible to create a new type of token with an Erc-20 standard on Ethereum
ERC-20 is a set of rules that all Ethereum tokens must follow to be compatible with each other. This allows developers to create new tokens on the same blockchain without having to recreate many features already present in Ether.
Ethereum also has its programming language, Solidity. This makes Ethereum more flexible than other cryptocurrencies due to its Turing completeness (ability to execute an infinite number of orders depending on the length of the contract.)
This standard led to the creation of ICOs (Initial Coin Offerings) which help startups raise funds for their projects. ICOs are a means of crowdfunding new cryptocurrencies by allowing anyone to purchase tokens offered by the company. In doing so, users can use these tokens within certain platforms or services, creating demand as more and more people start to use them and increasing their value as they become more difficult to acquire. .
How Ethereum is used in certain industries
The betting industry is one of the industries that can benefit the most from the Ethereum blockchain. This is because bets require many different steps to be executed quickly and efficiently. All of these actions (checking if users have enough money, executing commands, updating game balance, etc.) require some sort of checking process which has to be performed by an external computer.
With Ethereum, all actions that need to be performed by a betting company can be programmed into a smart contract that does not require any verification from external computers and also does not have to be limited to a sequence of commands. This means that betting companies no longer have to pay someone to monitor their betting platform and it also allows for better transparency and betting in a trustless environment.
More and more betting platforms are using Ethereum as a payment method. The coin’s value and its submerged market cap are good reasons for the betting platform to use this currency just like Bitcoin. Soon we will see unbreakable relationships between Ethereum betting sites.
The recipe behind Ethereum’s continued success
One of the reasons for the steady growth of ether is its simplicity. Ethereum’s blockchain can be compared to a web browser. Each user has their own copy of the entire blockchain to access Dapps and be able to use them at any time.
When a user updates the Ethereum blockchain, their copy is also updated and automatically synchronized with all copies of other users. This means that any new information added to a Dapp will be instantly updated in every copy of the blockchain.
This created a network where each user can create their own “server” or “node”. As more and more users can connect to the network, it also becomes more difficult to shut down or destroy it.
Ethereum has become one of the few coins to have resilient value in the market. Even when its price drops, it still holds a large market cap, making it one of the most valuable coins in the market.
Another reason that makes Ethereum so versatile is that anyone can create their own coin on the ethereum blockchain. So instead of creating an alternate coin or a new protocol, it is easier to create new Dapps on Ethereum, it will also increase its demand and price.
This has created one of the largest industries in the world where anyone can invest without having to go through middlemen.
The future of Ethereum
Ethereum has been one of the most stable coins on the market for years. Ethereum was created by Vitalik Buterin, who saw Bitcoin as an inefficient and expensive solution for payments and wanted something better. The system allows developers to create decentralized applications called “Dapps” which can be used for various purposes such as gaming or social media platforms. It is also possible to create a new type of token with an ERC-20 standard on Ethereum which has become popular among other cryptocurrencies and ICOs. In 2016, there were over a million active addresses of users who participated in transactions on the blockchain, which clearly shows how this technology will continue to develop in the future.