What is Ethereum, and when was it created?

Ethereum is a decentralized, open-source blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). It was created by Vitalik Buterin and officially launched on July 30, 2015. Ethereum's native cryptocurrency, Ether (ETH), is used to facilitate transactions on the network and incentivize participants. Its unique features, such as the ability to support complex programmable transactions, have made it a foundational technology in the cryptocurrency ecosystem.

What is Ethereum, and when was it launched?

Ethereum is a decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (DApps). It was launched on July 30, 2015, and utilizes the Ethash hashing algorithm. Ethereum's flexibility and programmability have made it a foundational technology in the blockchain space, facilitating innovations such as decentralized finance (DeFi) and non-fungible tokens (NFTs). Staying informed about its developments is crucial for anyone interested in the cryptocurrency landscape.

What hashing algorithm does Ethereum use?

Ethereum employs the Ethash hashing algorithm, which is designed to be memory-hard and resistant to ASIC mining. This means that it requires significant memory and computational resources to mine Ether (ETH), making it more accessible for individual miners using consumer-grade hardware. Ethash supports Ethereum's proof-of-work consensus mechanism, although the network is transitioning to proof-of-stake with Ethereum 2.0, which will further enhance scalability and energy efficiency.

How does Ethereum differ from Bitcoin?

While both Ethereum and Bitcoin are cryptocurrencies, they serve different purposes. Bitcoin is primarily a digital currency designed for peer-to-peer transactions and as a store of value. In contrast, Ethereum is a decentralized platform that enables the creation of smart contracts and decentralized applications (dApps). Ethereum's flexibility allows for a broader range of use cases beyond currency, including decentralized finance (DeFi), non-fungible tokens (NFTs), and more, making it a versatile ecosystem within the blockchain space. Additionally, Ethereum is transitioning to a proof-of-stake consensus mechanism, unlike Bitcoin's proof-of-work.

What are smart contracts in Ethereum?

Smart contracts are self-executing contracts with the terms of the agreement directly written in code. On the Ethereum blockchain, these contracts automatically enforce and execute actions when predetermined conditions are met. This technology eliminates the need for intermediaries, enhances security, and increases efficiency in various applications, such as financial transactions and supply chain management. Understanding smart contracts is essential for grasping the full potential of the Ethereum ecosystem.

What are smart contracts in the context of Ethereum?

Smart contracts are self-executing contracts with the terms of the agreement directly written in code. On the Ethereum platform, these contracts operate on the blockchain, enabling automated transactions and interactions without intermediaries. They facilitate various applications, including decentralized finance (DeFi), gaming, and token issuance. By leveraging smart contracts, Ethereum allows developers to create trustless systems that enhance security, reduce costs, and increase transparency across various industries.

Ethereum ETH Interest Rates: Lending, Staking & Live Prices

Price of Ethereum (ETH) Today

As of the latest data, Ethereum (ETH) is currently priced at $1,831.18 with a market capitalization of $221.19B. The 24-hour trading volume stands at $14.01B, The circulating supply of Ethereum is approximately $120.48M. The cryptocurrency has seen a 1.52% increase in value over the past 24 hours.

Best Ethereum (ETH) Prices

Platform	Coin	Price
Klink	Ethereum (ETH)	1,831.18
WhiteBit	Ethereum (ETH)	1,827.3
EarnPark	Ethereum (ETH)	1,827.24
Kraken	Ethereum (ETH)	1,827.53
Gemini	Ethereum (ETH)	1,846.1
Bitpanda	Ethereum (ETH)	3,240

Latest Ethereum (ETH) Interest Rates

Ethereum (ETH) Lending Rates

Platform	Coin	Interest rate
Nexo	Ethereum (ETH)	Up to 8% APY
YouHodler	Ethereum (ETH)	Up to 12% APY
EarnPark	Ethereum (ETH)	Up to 50% APY

See all 29 lending rates

Ethereum (ETH) Staking Rewards

Platform	Coin	Staking rewards
Nexo	Ethereum (ETH)	Up to 3.5% APY
Uphold	Ethereum (ETH)	Up to 1.76% APY
YouHodler	Ethereum (ETH)	Up to 9% APY

See all 38 staking rewards

Ethereum (ETH) Borrowing Rates

Platform	Coin	Interest rate
Nexo	Ethereum (ETH)	From 2.9% APR
Nebeus	Ethereum (ETH)	From 8% APR
YouHodler	Ethereum (ETH)	From 11% APR

See all 6 borrowing rates

About Ethereum (ETH)

Ethereum (ETH) is a decentralized blockchain platform that enables the creation and execution of smart contracts and decentralized applications (dApps). Its core technology is built on the Ethash hashing algorithm, which facilitates the mining process and ensures network security. Ethereum operates on a proof-of-work consensus mechanism, requiring miners to solve complex mathematical problems to validate transactions and add new blocks to the blockchain. This network architecture allows for a high degree of programmability and flexibility, enabling developers to create a wide range of applications that can interact with each other seamlessly. As Ethereum continues to evolve, it remains essential for users and developers to stay informed about its technological advancements and market dynamics.

Ethereum serves as a foundational platform for a wide array of use cases and real-world applications, primarily through its support for smart contracts and decentralized applications (dApps). One prominent use case is decentralized finance (DeFi), where Ethereum enables users to lend, borrow, and earn interest on their assets without intermediaries. For instance, platforms like Aave and YouHodler leverage Ethereum's capabilities to provide innovative financial services. Additionally, Ethereum is instrumental in the creation of non-fungible tokens (NFTs), which are unique digital assets that represent ownership of items such as art, music, and virtual real estate, with notable projects like CryptoKitties showcasing its potential. Furthermore, Ethereum's architecture supports supply chain management solutions, allowing for transparent tracking of goods and enhancing accountability among stakeholders. These diverse applications highlight Ethereum's versatility and its significant impact across various industries.

Ethereum (ETH) operates on a unique tokenomics model characterized by its supply mechanisms and distribution model. Initially, Ethereum had a capped supply of 18 million ETH per year, but with the transition to Ethereum 2.0 and the implementation of the EIP-1559 upgrade, the network introduced a deflationary aspect by allowing a portion of transaction fees to be burned, effectively reducing the circulating supply over time. This change aims to create scarcity and potentially increase the value of ETH as demand grows. The distribution model of ETH began with an initial coin offering (ICO) in 2014, which raised funds for the development of the platform, followed by mining rewards that incentivize participants to secure the network. As Ethereum evolves, its market dynamics are influenced by factors such as network usage, transaction fees, and the growing interest in decentralized applications and decentralized finance (DeFi), making it a critical asset in the cryptocurrency landscape.

Ethereum's network security is supported by its proof-of-work (PoW) consensus mechanism, which requires miners to solve complex cryptographic puzzles to validate transactions and add new blocks to the blockchain. This process ensures that only legitimate transactions are recorded, as it necessitates significant computational resources, thereby deterring malicious actors from attempting to manipulate the network. Each block contains a cryptographic hash of the previous block, creating a secure chain that is resistant to tampering. Additionally, Ethereum employs a decentralized network of nodes that continuously monitor and verify transactions, enhancing security through redundancy and consensus among participants. As Ethereum transitions to proof-of-stake (PoS) with Ethereum 2.0, the validation process will shift to validators who are required to lock up a certain amount of ETH as collateral, further securing the network by aligning their financial incentives with the integrity of the blockchain. This evolution aims to improve scalability and energy efficiency while maintaining robust security features.

Ethereum's development roadmap has been marked by several significant milestones aimed at enhancing its scalability, security, and functionality. The platform's genesis occurred on July 30, 2015, with the launch of Ethereum 1.0, which introduced smart contracts and decentralized applications. In 2017, the network underwent a major upgrade known as the Metropolis: Byzantium hard fork, which improved privacy and scalability features. This was followed by the Metropolis: Constantinople upgrade in early 2019, which further optimized the network's performance. The transition to Ethereum 2.0 began in December 2020 with the launch of the Beacon Chain, introducing proof-of-stake as a new consensus mechanism. Subsequent phases of Ethereum 2.0 aim to implement shard chains and enhance transaction throughput, with the ultimate goal of achieving a more scalable and efficient network. These milestones reflect Ethereum's commitment to continuous improvement and adaptation in the rapidly evolving blockchain landscape.

How to Keep Your Ethereum (ETH) Safe

To enhance the security of your Ethereum holdings, consider using a hardware wallet, which provides a secure offline environment for storing your private keys, making it significantly harder for hackers to access your funds. Popular options include Ledger and Trezor. For private key management, always generate keys in a secure environment and never share them. Utilize strong, unique passwords and enable two-factor authentication whenever possible. Be aware of common security risks such as phishing attacks and malware; mitigate these risks by regularly updating your software, using antivirus programs, and being cautious of unsolicited communications. Implementing multi-signature security options can further protect your assets by requiring multiple approvals for transactions, adding an extra layer of security. Lastly, establish a robust backup procedure by securely storing copies of your private keys and recovery phrases in multiple locations, ensuring they are encrypted and protected from unauthorized access.

How Ethereum (ETH) Works

Ethereum operates on a decentralized blockchain architecture that enables the execution of smart contracts and decentralized applications (dApps). It utilizes the Ethash hashing algorithm within its proof-of-work consensus mechanism, which requires miners to solve complex mathematical problems to validate transactions and add them to the blockchain. The transaction validation process involves miners bundling transactions into blocks, which are then verified by the network before being permanently recorded on the blockchain. Network security is maintained through a combination of cryptographic techniques and the decentralized nature of the network, making it resistant to attacks and fraud. Unique technical features of Ethereum include its Turing-complete programming language, which allows developers to create complex smart contracts, and its ability to facilitate decentralized finance (DeFi) applications, enabling users to lend, borrow, and earn interest on their assets.

Ethereum Buying Guide

How to buy Ethereum

How to earn Ethereum

Frequently Asked Questions About Ethereum (ETH)

What is Ethereum, and when was it created?: Ethereum is a decentralized, open-source blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). It was created by Vitalik Buterin and officially launched on July 30, 2015. Ethereum's native cryptocurrency, Ether (ETH), is used to facilitate transactions on the network and incentivize participants. Its unique features, such as the ability to support complex programmable transactions, have made it a foundational technology in the cryptocurrency ecosystem.
What is Ethereum, and when was it launched?: Ethereum is a decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (DApps). It was launched on July 30, 2015, and utilizes the Ethash hashing algorithm. Ethereum's flexibility and programmability have made it a foundational technology in the blockchain space, facilitating innovations such as decentralized finance (DeFi) and non-fungible tokens (NFTs). Staying informed about its developments is crucial for anyone interested in the cryptocurrency landscape.
What hashing algorithm does Ethereum use?: Ethereum employs the Ethash hashing algorithm, which is designed to be memory-hard and resistant to ASIC mining. This means that it requires significant memory and computational resources to mine Ether (ETH), making it more accessible for individual miners using consumer-grade hardware. Ethash supports Ethereum's proof-of-work consensus mechanism, although the network is transitioning to proof-of-stake with Ethereum 2.0, which will further enhance scalability and energy efficiency.
How does Ethereum differ from Bitcoin?: While both Ethereum and Bitcoin are cryptocurrencies, they serve different purposes. Bitcoin is primarily a digital currency designed for peer-to-peer transactions and as a store of value. In contrast, Ethereum is a decentralized platform that enables the creation of smart contracts and decentralized applications (dApps). Ethereum's flexibility allows for a broader range of use cases beyond currency, including decentralized finance (DeFi), non-fungible tokens (NFTs), and more, making it a versatile ecosystem within the blockchain space. Additionally, Ethereum is transitioning to a proof-of-stake consensus mechanism, unlike Bitcoin's proof-of-work.
What are smart contracts in Ethereum?: Smart contracts are self-executing contracts with the terms of the agreement directly written in code. On the Ethereum blockchain, these contracts automatically enforce and execute actions when predetermined conditions are met. This technology eliminates the need for intermediaries, enhances security, and increases efficiency in various applications, such as financial transactions and supply chain management. Understanding smart contracts is essential for grasping the full potential of the Ethereum ecosystem.
What are smart contracts in the context of Ethereum?: Smart contracts are self-executing contracts with the terms of the agreement directly written in code. On the Ethereum platform, these contracts operate on the blockchain, enabling automated transactions and interactions without intermediaries. They facilitate various applications, including decentralized finance (DeFi), gaming, and token issuance. By leveraging smart contracts, Ethereum allows developers to create trustless systems that enhance security, reduce costs, and increase transparency across various industries.