Ethereum

Ethereum is now the second largest crytpocurrency after BitCoin with a market capitalisation of $28 billion.  While BitCoin is purely currency and no other use, Ethereum is a platform / software where companies/ startup can create contracts and Ether (ETH) is the currency used for Ethereum platform.

What is Ethereum?

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.

It is developed by the Ethereum Foundation and the the project was bootstrapped via an ether pre-sale during August 2014.

What is Ether?

Ether is a necessary element — a fuel — for operating the distributed application platform Ethereum.

It is a form of payment made by the clients of the platform to the machines executing the requested operations. To put it another way, ether is the incentive ensuring that developers write quality applications (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources).

Supply of Ether

The value token of the Ethereum blockchain is called ether. It is listed under the code ETH and traded on cryptocurrency exchanges. It is also used to pay for transaction fees and computational services on the Ethereum network

In 2014, 60 million ether created to contributors of the presale.  According to the terms agreed by all parties on the 2014 presale, issuance of ether is capped at 18 million ether per year (this number equals 25% of the initial supply).This means that while the absolute issuance is fixed, the relative inflation is decreased every year.

The supply of Ether was projected to increase by 14.75% in 2017, with an algorithm in place to gradually decline to 1.59% by 2065

But the rate is not expected to be kept: sometime in 2017 Ethereum will be switched from Proof of Work to a new consensus algorithm under development, called Casper that is expected to be more efficient and require less mining subsidy.

Use of Ether: 

Developers who intend to build apps that will use the ethereum blockchain. Users who want to access and interact with smart contracts on the ethereum blockchain.

Ethereum is (as of 2017) the leading blockchain platform for initial coin offering project with over 50% market share.

As of January 2016, the Ethereum protocol could process 25 transactions per second.

Current Ether Price and Market Cap

As per coinmarketcap,  the circulating supply of ETH is 95,237,537 ETH. As on 21st Oct 2017, the total market capitalisation of ETH is USD 28 billion ( USD 300/ETH). The volume traded per day is USD 444 million.

Ethereum (ETH) vs Ethereum CLassic (ETC)

In 2016, there was a digital cyber attack on the Ethereum network and 3.6 million ether was moved to hacker;s accounts. The group decided to implement hard fork to return the stoken token to the original owners.

However, some members of the Ethereum community rejected the hard fork on the grounds of “immutability”, the principle that the blockchain cannot be changed.  They decided to keep using the unforked version of Ethereum called “Ethereum Classic”.

As on 21st October 2017, Ethereum (ETH) has market cap of $28 billion and Ethereum Classic (ETC) has market cap of $1 billion.

 ETHETC 
21 Oct 2017$298$10.83 
01 Jan 2017$8.17$1.40 
24 Jul 2016$12.75$0.92 
1 Jan 2016$0.95  
8 Aug 2015$0.75  

 

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