What is Ethereum ($ETH)?
Ethereum is a decentralized technology platform powered by blockchain technology. Its name is derived from the native coin - Ether. Gas fees associated with movement on the ERC20 mainnet blockchain are required for transaction validation on the proof-of-work blockchain network.
What is proof-of-work?
Proof-of-work is a validation model used by blockchains like Ethereum and Bitcoin. In a proof-of-work blockchain model, nodes, or computers on the network are rewarded for solving mathematical computations to verify/validate transactions on the network. The validator nodes receive fractions of $ETH for their “work” in the network processing model underlined by the proof-of-work concept.
Ethereum is known for its smart contract protocol. The network protocol implements a first-of-its-kind distributed consensus model, which presents information to multiple interfaces simultaneously.
DApps, therefore encourage interactivity since the applications are distributed to multiple users at the same time. Metaverse function, gamefi, and other interactive processes and environments, are made fluid on the Ethereum network because of this.
More about Ethereum-based applications
DApps developers know all about Ethereum and its benefits, and while it is considered to be a more complicated network to develop on because of the technical proficiency required with program language such as Solidity, many serious, experienced developers choose it largely because of that.
Since the Ethereum network enables DApps technology, independent blockchains frequently choose to build atop the Ethereum mainnet in order to persist in extended scalability for further evolution and real-world utilities based on blockchain technology. The Ethereum network was used as the underlying blockchain for popular blockchains such as the Binance Chain and Polygon (Matic).
With the elevated security presented by the Ethereum network, it is also considered by many to be an optimal choice for Decentralized Finance applications. Ethereum is a choice network for other applications and processes such as NFT and metaverse deployment, due to its underlying DApp technology integration and scalability benefits.
Buy Ethereum ($ETH) on Firstrade
Upon opening a Firstrade account users are given the ability to buy Ethereum on the crypto trading platform. Ethereum ($ETH) is one of the first cryptocurrencies on the market. It was originally conceived and explained in a published whitepaper in 2013, launched later in 2015. Ethereum was one of the first cryptocurrency projects and associated coins to consider blockchain scaling beyond virtual transactions.
The founders of the Ethereum network have gone on to build more decentralized blockchain networks and scale upon the fundamental concepts developed in the Ethereum design. $ETH also boasts of the highest transactions amongst all cryptocurrencies, reaching as many as 1.5 million on its busiest days. Bitcoin is the closest in second, averaging just over a quarter million transactions daily.
Consistent growth of Ethereum
At the top of 2022 there were 4 million digital wallets reported to hold Ethereum, up 10% from the prior year. Popular metaverse platforms like Decentraland, CryptoVoxels and Somnium Space developed growing communities on Ethereum. For many reasons like, but not limited to this, statistics show that more individuals consistently buy Ethereum each year.
Learn more about Ethereum ($ETH) and check the most current cryptocurrency prices on Firstrade.