Ethereum is the Fastest Growing Cryptocurrency in the World and It May Be Unstoppable!
In 2021, there are many cryptocurrencies that are experiencing exponential growth. But there is one crypto project that has grown from sleeping giant into a monster: Ethereum: the fastest growing cryptocurrency.
So what is Ethereum?
Ethereum is an open-source, decentralized block chain project that is known for its smart contracts. It provides open access to money, via the Ether cryptocurrency coin (ETH), and technology, exemplified by the thousands of applications that are operating on the Ethereum network. The ETH coin of Ethereum is second only to bitcoin in market capitalization.
Like Bitcoin, Ethereum is a Proof of Work consensus system. This means that powerful computers all over the world are continuously solving complexed equations in order to build blocks on the Ethereum block chain. Whichever machine or miner solves the problem quickest, completes the block and receives a reward as payment: ETH coin. However, Ethereum is allegedly moving to a Proof of Stake model in the future, which requires less energy consumption.
Ethereum Smart Contracts
Using block chain technology, the Ethereum Network of nodes is a true peer-to-peer world-wide network. Smart contracts are implemented using the Ethereum Virtual Machine (EVM). EVM is a specialized computer code that executes instructions in a decentralized, secure manner. Ethereum uses GAS to fund transactions on the network.
Ethereum History: Challenges, Heists and New Partners
Vitalik Buterin, a writer and programmer, founded Ethereum. He is a cryptocurrency programmer and writer. The Ethereum block chain officially went live on July 30, 2015. The following year, a hacker exploited a vulnerability in the system to steal approximately $50 Million in Ether. The heist caused a minor uproar in the Ethereum community and caused Ether to create a fork in the block chain. The fork produced “Ethereum Classic”, a completely new (and unrelated) cryptocurrency.
The Ether heist in 2016 did not stop the Ethereum train. It’s been picking up momentum ever since, developing hundreds of smart contracts and partnering with endless groups. The list of investors or partners for Ethereum has begun to include major players in the financial and technical industry, including the likes of JP Morgan, Amazon, Microsoft, Intel, Accenture, BP and Credit Suisse, Cisco Systems and MasterCard.
How Ethereum is Different from Bitcoin
When Bitcoin was introduced to the world in 2009, it was created to be a decentralized, peer-to-peer payment system. Bitcoin was essentially digital internet cash. Both Ethereum and Bitcoin use block chain technology and a proof of work system. However, Ethereum is both a payment system using Ether (ETH) and a smart contracts system. As a result, entire projects are able to run on top of the Ethereum block chain. For example, in November 2017, the decentralized application (DApps) “CryptoKitties”, a digital collecting and trading app of virtual felines, was launched using Ethereum. Overall, CryptoKitties was a success, but also showed that Ethereum had more growing to do. It was still early days yet.
Ethereum 2021 and Beyond
Fast forward to the cryptocurrency scene of 2021. Despite a market collapse store of 2018-2020, Ethereum has continued to grow. There are several hundred thousand developers actively working on the Ethereum block chain and related projects in different capacities. Currently there are over 600 DApps successfully operating on the Ethereum block chain network. And with so many big players involved and future growth assured, Ethereum promises to be exciting to watch in the future.
Ethereum Doesn’t Compete With Bitcoin
Although Ethereum shares some features with Bitcoin, such as being able to make peer-to-peer transactions, they serve different purposes and audiences. Bitcoin was the original decentralized payment system that didn’t require a middleman bank to conduct payments. In contrast, Ethereum’s primary purpose is to serve as the core block chain on which newer projects operate.
Why Ethereum is the Fastest Growing Cryptocurrency
Ethereum recently hit a new year-to-date high of around $480. Decentralized Finance (DeFi) has exploded with users and interest. Many of the DeFi projects are utilizing the Ethereum block chain as their launch point. Ironically, not only does more projects on the Ethereum block chain strengthen Ethereum, but it also requires that more Ethereum (and even Bitcoin) be locked up for use with the DeFi projects. As a result, demand for Ether is increasing, positively affecting price.
Additionally, there is great excitement about Ethereum 2.0 and switching to a proof of stake model, which earns cryptocurrency holders interest on their holdings.
Ethereum: Fastest Horse in the Race
With thousands of cryptocurrencies hyping their projects, Ethereum, as much as any other project, has demonstrated it has real case uses and real support from a growing group of investors and users. Is the crypto space risky? Yes, indeed. But, Ethereum may be one of the few horses in this tech race that can truly go the distance as the fastest growing cryptocurrency.
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