Ethereum: concept, formation, stages of development and forecasts
This is rarely said, but the peak of activity in the crypto-currency market in 2016-2017 was caused by the beginning of the operation and the growing popularity of Ethereum. The new environment allowed to maximize the potential of blockchain in the financial and technical sphere and created many opportunities for launching new startups and projects that allowed to attract huge investments.
According to CNN, there are two views on investing in cryptocurrencies: some people invest in cryptocurrencies such as bitcoin or Ethereum; other experts believe that the real value lies in the underlying technology known as the blockchain.
Description Of Ethereum
Despite the widespread popularity in the virtual world, not many people know what Ethereum really is.
Ethereum can be considered both a digital currency and a functional decentralized environment that has made a real revolution in the IT environment.
Digital platform Ethereum was created with the purpose of development and operation of decentralized applications on the blockchain with smart contracts.
ETH is the internal monetary unit of the platform, which is used not only as an accounting unit but also ensures the execution of smart contracts that play a “fuel” for the network.
Speaking of Ethereum, we can note its similarity with bitcoin – this cryptocurrency, which is not controlled by banks and government agencies. The principle of independence applies here. System performance is carried out by its participants. That is why it carries out non-lethal activities. It is safe to say that today there is no more promising cryptocurrency than Ethereum.
Benefits and disadvantages of Ethereum
Below are the main advantages that make it possible to claim that Ethereum is the obvious choice for users of digital cryptocurrency platforms:
- No possibility to make any changes to the data by unauthorized persons. This option is available only to members of the development team.
- Guarantee of anti-corruption protection and protection against unauthorized access. Applications run in the network formed around the consensus that makes it impossible for censorship.
- Security provision. Ethereum does not have a Central point of failure, and cryptography protects the network from hacker attacks and fraud.
- Zero downtime. Applications have high speed never stop.
With many positive aspects, Ethereum also has a number of disadvantages. Due to the fact that the codes of smart contracts are written by people, it can not be called perfect, sometimes there are errors that can lead to unforeseen consequences. If such an error is exploited by someone, there is no way to stop the attack other than to get the consensus of the entire network and re-write the contract code. But this contradicts the essence of the blockchain, which is designed to fix previous States.
In addition, any action issuing centralized intervention raises serious questions about the decentralized nature of the application.
Ethereum formation and elaboration stages
The year 2013:
– Programmer Vitalik Buterin gives a description of Ethereum. The end of the year was marked by Buterin’s proposal to create a new digital platform with a common scripting language.
The year 2014:
– the first event of the year was the development of the Ethereum program by the Swiss company. Mid-year sale starts preparatory token Ether. After 2 weeks of sales reach $ 14 million In October, Ethereum introduces a reward of 5 ETH per block.
The year 2015:
– in the middle of the year, it became known about the launch of earlier versions called Frontier, which was created as a beta version for use by the team that developed Ethereum. But he was very effective, and subsequently, razrabotchik made the decision on its application for optimization of the Ethereum ecosystem.
The year 2016:
-in March improvement for network Protocol Enthereum Homestead. In May Enthereum wrote about a variety of media, after his DAO earned by selling tokens million 150 dollars. The hacker attack on the system occurred in June, during which the attackers seized $ 53 million from the ether system. After high-profile disputes that arose around the incident, Ethereum was divided into 2 independent chains: Ethereum and Ethereum Classic.
The year 2017:
in November more than $150 million of Ethereum cryptocurrency may have been permanently frozen after accidentally running a code error, the BBC reports (https://www.bbc.com/news/technology-41928147).
2018-ICO projects began implementing huge batches of previously unsold and accumulated ETH coins and moving to Fiat. So, in July and the first half of August, they sold about 100 thousand ETH, and in the second half of August and September — 300 thousand ETH. The results of another study, published in August, published information that the projects that raised funds for the ICO, held at that time 3 330 390 ETH.
In August 2018, the average ETH rate fell below $300, and in December fell to $100.
Ethereum exchange rate in 2019
Since the beginning of this year, the world’s most popular altcoin shows good results, many Ethereum traders hope that ETH coin is preparing for a new mass rally. Opinions regarding the development and the rate of the second – most valuable coin are beginning to change to positive.
In early January, the exchange rate for the Ethereum coin reaches $ 160. On May 11, the market believed in a reversal and the Ethereum rate begins a vigorous upward movement and in five days reaches $280.
According to the situation at the end of May, the exchange rate of Ethereum fell to $ 235, reacting to an unexpected outflow of bitcoin. Time will show how the situation regarding The Ethereum exchange rate will develop in the future, but there is still hope for continued growth at least up to the $400 mark.
A few days ago, the price of ETH was fixed at a level above $220. Despite the fact that the ETH rate is still low relative to its highest value, but there is still a belief that the price will change for the better.