Ethereum Cryptocurrency Review
Ethereum is the second-largest cryptocurrency by market capitalization after Bitcoin (at the time of writing). Many see it as Bitcoin’s strongest competitor because of its considerable technical progress and the extra features it brought to the crypto space, such as smart contracts and non-fungible tokens.
Many argue that if any coin can push Bitcoin off the top spot, at least for now, it is Ethereum. In practice Ethereum is more than a digital currency: it is built around the concept of smart contracts, as we discuss together in this detailed Ethereum review.
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Ethereum’s Beginnings
Ethereum was founded by the Russian-Canadian programmer Vitalik Buterin, so its founder is well known to everyone, unlike Bitcoin, whose creator’s identity remains unknown to this day.
Ethereum first appeared in 2013. Although that date may look old at first glance, it is actually somewhat late, since many cryptocurrencies had already appeared before Ethereum.
2014 was Ethereum’s real launch, when many programmers joined its team and it began raising funding by issuing units of the coin whose proceeds were allocated to the development team. In 2015 the Ethereum network went live.
Since then Ethereum has become a strong name in the crypto market, holding a leading position most of the time (behind Bitcoin), and it has become one of the most respected coins in crypto communities.
What sets Ethereum apart from other cryptocurrencies?
Ethereum is in fact more than a digital currency. It is built on the concept of smart contracts, which let multiple parties create contracts with pre-defined terms and execute those contracts as soon as their conditions are met.
How does that work exactly? For example, using the Ethereum network two parties can agree that the first party pays rent at set intervals, and under this contract the transfer is made automatically from the first party’s wallet to the second party’s wallet.
These contracts brought a major shift to digital transactions, because they effectively remove the need for intermediaries or brokers, which sharply reduces transaction costs and makes them easier and faster to carry out.
NFTs and Ethereum
Non-fungible tokens are another of the Ethereum network’s clever applications. These tokens let users create “digital fingerprints” for digital artworks, which can then be used to prove a work’s authenticity, protect the rights of the artist who produced it, or even be traded by buying and selling.
Some non-fungible tokens have in fact reached very high prices in their trading markets, prices that ran into millions of dollars (such as the NFT that Jack Dorsey sold for the first tweet on Twitter).
Proof of stake vs proof of work
Vitalik Buterin views proof of stake as the future of cryptocurrencies, so a gradual shift began to move Ethereum from a coin based on proof of work (mining) to one based on proof of stake (locking the coin for set periods in exchange for additional units of it).
Although Ethereum is still mineable at present, this is expected to end in the near future, with the coin moving entirely to the proof-of-stake model.
Ethereum and Bitcoin: a cat-and-mouse game
Many believe Ethereum is the cryptocurrency that should sit at the top in Bitcoin’s place, since the many technical features the coin offers, against Bitcoin’s relative rigidity, make it worthy of that position.
For now, though, Bitcoin’s dominance of the crypto market remains a fact, and it does not look set to change, at least over the next few years.
Are there other coins competing with Ethereum?
Yes. Bitcoin, as mentioned, is the main coin competing with Ethereum at present, but there is also Cardano, which relies entirely on the proof-of-stake model, as well as the fast-rising Solana, which allows transactions at a much lower cost than competing coins and at very high speeds too.
Summary
Ethereum is one of the more impressive cryptocurrencies because of its many technical features, from smart contracts and its support for creating non-fungible tokens to its adoption of the proof-of-stake model. But in a crypto space that settles only for the best, Ethereum faces fierce competition from many other coins that want to capture as large a share as possible of this huge market. So who wins in the end?
Frequently Asked Questions
What is the Ethereum project?
It is a software platform built on blockchain technology that creates and develops smart contracts.
Who owns Ethereum?
The Ethereum platform is attributed to the Russian-Canadian programmer Vitalik Buterin, who is also the co-founder of Bitcoin Magazine.
How do you get Ethereum?
Ethereum can be obtained through mining, like other cryptocurrencies, or by buying it on trading platforms such as Binance and others.
How much was Ethereum’s price?
At the time this report was written, Ethereum was trading at around 1,649 US dollars, on 6 February 2023.
Risk disclaimer
This article is for educational purposes only and is not investment advice or a recommendation to buy or sell any cryptocurrency. Digital assets are highly volatile, and trading crypto or CFDs with leverage carries a high risk of losing money rapidly. You could lose all of your invested capital. Do your own research and consider your circumstances before trading. Some links on this page are affiliate links, and we may earn a commission at no extra cost to you.
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