What is Ethereum and why is Ethereum Valuable?
What is Ethereum?
- Ethereum is a Blockchain-based on Proof of work. It expands on the Bitcoin Blockchain by building smart contract features that are cumbersome to execute on Bitcoin
- ERC-20 is is a standard used on the Ethereum Blockchain to issue smart contracts in the form of Fungible Tokens. This standard can be used across a variety of products and services. Cryptocurrencies like Shiba Inu are issued through ERC-20 Token.
- ERC-721 is a standard to issue Non-Fungible Tokens
Why is Ethereum Valuable?
- Most Altcoins do not have blockchains of their own. Instead, they issue ERC-20 Tokens from the Ethereum blockchain. Ethereum charges a gas fee in the form of Ether (Eth) cryptocurrency for using the Ethereum Blockchain
- Metaverse: Almost all Metaverse platforms issue built on the Ethereum Blockchain. So while Ether itself is not used on
- DeFi Tokens: Ethereum is a dominant player in this space with most Tokens and Apps built on Ethereum
- Decentralized Apps (DApps) like Uniswap, Polymarket, etc
Ethereum’s Price performance over the years
In many ways, the cryptocurrency industry is dependent on the Ethereum Blockchain and its tokens for running their business. As the Industry matures, Ethereum and ETH tokens will continue to rise in demand and therefore value.
What is Ethereum? Strengths and Weaknesses
- Phenomenal Ecosystem of Developers and Apps
- Most Altcoins issue ERC-20 Tokens which are based on the Ethereum Blockchain
- Transaction speeds
- Cost of Transaction