ETH (Ethereum) Token Price & Latest Live Chart

What is ETH (Ethereum)?

Ethereum is a decentralized, open-source and blockchain-based development platform that uses its native cryptocurrency, Ether (ETH), for transactions and incentivizes network participants through proof-of-stake (PoS) validation. It was conceived by Vitalik Buterin and launched in 2015 by Buterin and Joe Lubin. Ethereum is often compared to Bitcoin, but it is designed to be a distributed virtual computer on which applications can be developed, while Bitcoin was created only to support its cryptocurrency as a payment method. Ethereum has transitioned to a proof-of-stake consensus mechanism, which has enabled users to validate transactions and mint new ETH based on their ether holdings.

Ethereum is a global network of computers that follow a set of rules called the Ethereum protocol. It acts as a foundation for communities, applications, organizations, and digital assets that anyone can build and use. Ethereum offers various benefits, including banking for everyone, an open internet, peer-to-peer networks, censorship resistance, commerce guarantees, and composable products. Ethereum has been invaluable for people who have had to handle uncertainty around the security or soundness of their assets due to external forces outside of their control. It has also enabled cheaper and faster cross-border payments, quick help in times of crisis, and empowered creators and gamers. Ethereum is not controlled by any particular entity, and anyone can suggest changes to the protocol and discuss upgrades.

The Ethereum Dencun upgrade in 2024, which rolled out at Ethereum epoch 269,568, is a significant advancement in addressing Ethereum's scalability issues. The upgrade combines the Deneb and Cancun upgrades, focusing on the consensus and execution layers, respectively. Dencun introduces proto-danksharding, a technique that allows layer-2 solutions to store bulky transaction data off-chain, reducing fees for users on L2 solutions. This is achieved by utilizing data blobs specifically designed to manage large volumes of data outside the Ethereum blockchain. The upgrade also introduces cryptographic tools like the KZG commitment scheme to ensure the off-chain data stored in blobs can be efficiently verified as valid. The Dencun upgrade is a stepping stone to full danksharding, the ultimate sharding solution for Ethereum, and is expected to make the Ethereum ecosystem more affordable and accessible.

How does ETH (Ethereum) work?

Ethereum operates on a blockchain, a type of distributed ledger, similar to a database. This ledger consists of blocks that store data encoded from previous blocks alongside new information, forming an unalterable chain. Across the network, each node maintains a consistent copy of this blockchain. In the blockchain, each new block generates ether tokens as a reward. These tokens are given to a validator, the party responsible for verifying the information within a block and proposing the next one. The ether is then credited to the validator's digital wallet.

Validation occurs through a series of automated programs distributed across the network. These programs collectively achieve consensus on the legitimacy of transaction data through interactions between the consensus layer and the execution layer. For a block to be finalized, a significant number of validators must confirm that they have arrived at the same outcome independently.

Proof-of-Stake (PoS) Protocol

PoS, a validation process distinct from the traditional proof-of-work (which involves intensive computational activities known as mining), is less energy-consuming. PoS employs a finalization protocol called Casper-FFG and an algorithm named LMD Ghost, together forming a consensus mechanism dubbed Gasper. Gasper governs the consensus process and determines how validators are rewarded or penalized based on their activity and honesty. To become a solo validator, one must stake a minimum of 32 ETH. Those with less ETH can participate in a validation pool, sharing any resultant rewards. Validators propose new blocks and confirm their accuracy in a process called attestation. The proposed block is then validated by a group of validators, known as a committee, who verify and approve its validity. Dishonest or malicious validators face severe consequences. Gasper identifies and penalizes such validators by marking their proposed blocks for rejection, and the validators' staked ETH is burned—removed from circulation by being sent to an inaccessible wallet.

ETH Wallets and Security

Ether holders use digital wallets to manage their cryptocurrencies. A wallet functions as a digital interface, similar to how an email address works for receiving messages; however, it manages access to ether instead. Notably, the actual ether is not stored in the wallet. Instead, the wallet secures private keys—akin to passwords—that are crucial for initiating transactions and accessing one's ether. Due to the critical nature of these keys, securing them through various storage methods is highly emphasized.

ETH (Ethereum) market price & tokenomics

Ethereum has no fixed supply cap, and its pre-mined supply was distributed via an Initial Coin Offering (ICO) and to founders and contributors. Initially, Ethereum used Proof-of-Work consensus, resulting in an annual supply inflation of 4.5%. Ethereum validators are incentivized to add transactions and state changes to new blocks.

In August 2021, Ethereum introduced a mechanism to burn a portion of transaction fees, reducing annual inflation close to zero. The Merge transitioned Ethereum from Proof-of-Work to Proof-of-Stake, making it more energy-efficient and environmentally friendly. With staking now unlocked and inflation-neutral, validator rewards are expected to rival the fixed-income returns of the bond market. Scalability remains an issue for Ethereum, but the Merge laid the groundwork for Danksharding, which is expected to improve this. As of now, ETH (Ethereum) is ranked #2 by CoinMarketCap with market capitalization of $358,197,040,833 USD. The current circulating supply of ETH coins is 120,091,641.

Why do you invest in ETH (Ethereum)?

Investors often choose to invest in ETH (Ethereum) due to its strong position as a transformative force in the blockchain world, extending beyond just cryptocurrency. Ethereum is a versatile, open-source platform that revolutionized the creation and functionality of DApps through smart contract scripting. As a cornerstone in the crypto market, Ethereum offers a comprehensive platform enabling a decentralized digital economy and diverse applications. Additionally, Ethereum's transition to a Proof of Stake (PoS) consensus mechanism with its Ethereum 2.0 update enhances network efficiency and scalability.

Is ETH (Ethereum) a good Investment?

Ethereum stands out as a compelling investment choice, particularly for long-term portfolios. As one of the pioneering platforms in the blockchain arena, it underpins major innovations such as decentralized finance (DeFi), non-fungible tokens (NFTs), and smart contract applications. The diverse use cases of Ethereum contribute to its robust ecosystem, attracting substantial developer activity and continuous innovation. From a financial perspective, Ethereum is lauded for its high market capitalization and liquidity, which enhance its stability and resilience even during broader market downturns. The technical and fundamental analyses suggest strong growth potential and increasing adoption across various sectors, including the burgeoning field of Web3 technologies. Moreover, while risks are inherent in any investment, the informed consensus around Ethereum’s reliable and predictable growth trajectory makes it a prime candidate for investors aiming to capitalize on the digital economy's expansion.

Find out more about ETH (Ethereum):

• Homepage

• Explorer: Etherscan, Ethplorer, Bscscan

• Whitepaper