How Ethereum Works: It Seems Like We’re Living in a Futuristic Alternate Universe

]

The world is changing so fast that it’s tough to understand where the crypto revolution is going, but Ethereum will be part of that story.

Photo courtesy of Pixabay

It’s already a mad, mad world; add cryptocurrency, and it seems like we’re living in a futuristic alternate universe. It appears that new crypto technologies are popping up every week, and more people are becoming accustomed to investing money into digital coins. But what many of us don’t understand is that blockchain—the man behind the curtain of crypto—can be used for purposes beyond our current imaginations, the second-most-popular platform being Ethereum. Recently, the ether coin reached an all-time high of $2,200. But before we dive into Ethereum, let’s do a recap on how blockchain works.

Blockchain is revolutionary because it’s a decentralized technology that isn’t backed by a central authority. It’s a type of database that stores information; specifically for Bitcoin, it reserves the comprehensive history of Bitcoin transactions. This coin has been making headlines because of its institutionalization by everyone from Elon Musk and governments to banks and politicians—not to mention its skyrocketing value. Blockchain is difficult to alter, so that’s why it’s used in the digital currency space.

The cryptocurrency revolution is already affecting the way we live, how we view the world and—more fundamentally—the way our economy works. As of now, our economy depends on institutions for transactions. So, if you go to the store and buy something, it’s with cash that’s originated by a) the Federal Reserve or b) a credit card that uses U.S. dollars. And you have to go through a bank, so, at every transaction, there’s a touchpoint between centralized institutions—public or private, whether they’re governments or banks. The thing about cryptocurrency is it doesn’t depend on central players to get business across the finish line.

A lot of the news focuses on Bitcoin, but it’s just a currency. In December 2020, the World Economic Forum released a report titled “Crypto: What Is It Good For?” and they didn’t focus on Bitcoin. There are new emerging players.

Related Bitcoin 101: Could Cryptocurrencies Eventually Replace the Dollar?

The biggest story you’ve never heard of is Ethereum. It’s more advanced than Bitcoin in the sense that it’s customizable and open source. It can be used in such a vast capacity that we don’t know the extent of its possibilities. Ethereum is the new kid on the block.

Ethereum has a decentralized finance (DeFi) system, and it powers its own digital currency: ether (ETH). But according to their website, Ethereum builds upon Bitcoin’s innovation. Ether is the “gas” that “fuels” the network which is a programmable blockchain. Our world’s brightest minds can come up with endless possibilities for this technology; you can even use it for Bitcoin. It also runs thousands of decentralized applications (dapps).

Bank of America recently stated that “Bitcoin is the most talked about cryptocurrency, but Ethereum [the blockchain] has more features, including being more flexible,” according to CoinDesk.

Ethereum is much more flexible than Bitcoin because it’s not just a coin. The platform calls itself a “marketplace of financial services, games and apps that can’t steal your data or censor you.” One example of an Ethereum application is the use of non-fungible tokens (NFTs). Any of your assets can be tokenized, like how Kings of Leon sold their latest album.

Related How Cryptocurrency Could Inspire a New Kind of Financial Literacy

And they extend an open invitation to all of the coders and programmers out there.

“…[E]verything here is open-source and ready for you to extend and improve,” they stated.

So, get ready to learn some new vocabulary and adjust to new technologies in every facet of life. Bitcoin isn’t the height of blockchain technology. NFTs and DeFi aren’t the most advanced applications we will see. The world is changing so fast that it’s tough to understand where the crypto revolution is going, but Ethereum will be part of that story.

David Grasso is the host of the Follow the Profit podcast, where he shares simple ideas for financial success and lessons learned the hard way. He is also the CEO of Bold TV, Inc, a nonprofit media company dedicated to entrepreneurship and cultural empowerment.

Hannah Buczek is the managing editor and journalist for Bold TV. She also reports and edits for GenBiz, a nonprofit media brand focused on promoting financial freedom.

Latest Ethereum price and analysis (ETH to USD)

]

Ethereum is currently recovering from a dramatic 20.68% sell-off just 24-hours after it formed a new all-time high of $2,645.

At the time of writing the world’s second largest cryptocurrency is trading at $2,262 after bouncing by more than 8% from its overnight lows.

The sell-off was reflected across the wider cryptocurrency market, with Bitcoin slumping below $50,000 for the first time since March 7 as speculators begin to question whether the bull market has come to its conclusion.

It’s worth noting that while Bitcoin has formed a series of lower highs followed by a lower low, Ethereum remains in a bullish posture having bounced at $2,134 to keep its structure intact.

ETHUSD chart by TradingView

This could mean that altcoins like Ethereum may continue to perform well over the coming weeks despite a potential drop in the price of Bitcoin, similar to “alt season” played out in January, 2018.

From a technical perspective, Ethereum needs to hold above the previous higher low at $2,065, as well as the daily 200 exponential moving average which is coming in at around $2,100.

Failure to to do this would bring around price targets as low as $1,930 and even $1,805, although it depends on Bitcoin’s desire to bounce in the mid $40,000 region.

For more news, guides and cryptocurrency analysis, click here.

About Ethereum

Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.

Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.

More Ethereum news and information

If you want to find out more information about Ethereum or cryptocurrencies in general, then use the search box at the top of this page. Please check the below article:

https://coinrivet.com/ethereum-adopts-erc-1155-as-an-official-standard/

Story continues

As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.

You may be interested in our range of cryptocurrency guides along with the latest cryptocurrency news.

Disclaimer: This is not financial advice.

For more news, guides and cryptocurrency analysis, click here.

About Ethereum

Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.

Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.

More Ethereum news and information

If you want to find out more information about Ethereum or cryptocurrencies in general, then use the search box at the top of this page. Please check the below article:

https://coinrivet.com/ethereum-adopts-erc-1155-as-an-official-standard/

You may be interested in our range of cryptocurrency guides along with the latest cryptocurrency news.

Disclaimer: This is not financial advice.

Could Ethereum overtake Bitcoin as the world’s leading cryptocurrency? - CityAM

]

Ethereum has the potential to be bigger than Bitcoin and become the dominant crypto asset, according to a renowned market analyst.

Vitalik Buterin’s brainchild yesterday clipped $2,614 to mark a new all-time high in its near-six-year history, setting down a bright green marker as Bitcoin found reverse gear in what appears to be a period of momentum for alt coins.

While the price of Ethereum’s native coin – ETH – is still some considerable distance off the stern of the flagship BTC, the gap is slowly closing and Ether’s hold is overflowing with the kind of stores Bitcoin simply did not have at the same point on the map.

Read more: Ethereum – the emerald isle in a sea of red

This, according to eToro analyst Simon Peters, might be the telling signal that Ethereum has more than just the anecdotal potential to overtake the world’s most dominant cryptocurrency.

“Ethereum could certainly challenge Bitcoin for the number one spot among cryptoassets in terms of market cap, but it will be a few years yet before this could potentially happen,” he told Crypto AM.

“We must remember both tokens were created for different reasons. Bitcoin is a decentralised currency and Ethereum is a platform to build decentralised apps that make use of smart contracts.”

Although often seen as worlds apart, the fortunes of both Bitcoin and Ethereum have often run parallel as they reflect similar patterns of ebb and flow along the horizontal graphs that illuminate the puzzled faces of many traders across the globe.

Read more: Bitcoin crackdown: Crypto exchange owner flees Turkey as police arrest 62 traders

Lately, however, ETH has been planting its boots firmly on its own path. Over the last few weeks – arguably driven by BTC’s price surges – Ethereum has been quietly veering off the course of following the leader’s footsteps and, instead, building towards considerable growth within its own network.

More potential

“At this moment in time, Ethereum arguably has more potential for more real-world applications, prompting a wider ecosystem than Bitcoin,” added Mr Peters.

“Currently, plenty of DeFi applications are being built such as Uniswap, MakerDAO and Chainlink to name a few, as well as supporting smart contracts and NFTs.

“Granted, some of Ethereum’s success can be attributed to Bitcoin and the interest in cryptoassets it has created. With far more activity and increasing numbers of users projected for Ethereum, thanks to the number of applications being built on it, I expect it will cause the overall network value to increase, and, in turn, the price of Ether could increase at a quicker pace.”

Read more: Time to buy the dip, or have the crypto markets got further to fall?

The key ingredient in Ethereum’s recent cocktail of success, it should be noted, lies in where ETH is now – almost six years down the line – to where Satoshi Nakamoto’s brilliant vision was at the same point.

Sit the roadmaps side-by-side, and it would be hard to prevent your eyes from widening.

“It is also key to remember that Bitcoin had a six-year head start versus Ethereum,” Peters explains.

“If you look at where the market cap of Bitcoin was six years ago it was approximately $5 billion, whereas Ethereum at a similar point in terms of its life cycle (six years since launching) has a market cap of $300billion.”

It’s a startling comparison, and one that makes the current $46,000 difference in price seem like an ice cube on a glacier.

Although the markets across the board have turned a peculiar shade of claret today, yesterday’s echo of an all-time high for Ethereum still resonates, sparking discussions about the prospect of BTC and ETH ‘decoupling’.

Read more: Bitcoin could pull back to $20,000 – claims global investment boss

Broader spectrum

“While the two have traded in tandem for much of the last three years, as the cryptoasset market starts to mature, investors will be looking across the broader spectrum of assets and assessing which has the best long-term potential,” adds eToro’s crypto lead.

“Bitcoin has captured the attention of millions of investors, but Ethereum offers an alternative. With Ether’s dollar valuation significantly lower than Bitcoin, it also appeals to investors who want to own whole coins, something which is now far more expensive to achieve with Bitcoin.

“With the widespread usage of Ethereum’s network following its latest upgrade, the cryptoasset continues to offer a lot of opportunities to developers and investors.”

He’s not alone in his views. Prior to the dramatic red dip in the markets, plenty of heads were being turned by Ethereum’s pace and momentum.

Read more: Bitcoin gets seal of approval as Baillie Gifford ploughs $100m into London crypto firm

Several analysts claimed Ether’s next stop would be around $3,000. Once that mark is flagged, the psychological barrier of $5,000 would seem to be within reasonable reach over the coming months.

However, there were still some words of caution. Susannah Streeter – senior investment and markets analyst with Hargreaves Lansdown – was quick to point at potential storm being whipped up by recent volatile price actions.

‘’The volatility continues in the crypto world this week with a rollercoaster ride for coins and tokens,” she warned.

“Ethereum in particular has made great strides ahead in recent days, but in this speculative environment its future direction is far from certain. The currency’s gains are being fuelled by chatter across internet forums, with influencers jostling for position to push their favoured coins.”

Clamour for cryptocurrencies

The experienced analyst also called for wise heads not to get swept up by the current fervour and clamour for cryptocurrencies.

“Once again, the risky mix of social media and easy access to trading in cryptocurrencies has led to heightened speculation,” she added.

“Investors should be extremely cautious about getting caught up in this stampede because Ethereum is still very much a bet. Its price is being driven primarily by future price speculation rather than an underlying use-case.

“Predicting the point at which demand subsides and prices begin to fall is very difficult, if not impossible. Traders would be wise to heed the warnings of the Financial Conduct Authority, that if consumers invest in crypto assets, they should be prepared to lose their money.”

Read more: WeWork to accept crypto payments

follow us