What you should know about Ethereum and ETH?

Ethereum is an open-source blockchain that is decentralized and that supports smart contracts. Ether ( ETH) is the main currency for the Ethereum platform. Of all the cryptocurrencies, Ether is second only to Bitcoin in market capitalization.
Ethereum was invented in 2013 by a programmer, Vitalik Buterin. Other founding members of Ethereum comprised Gavin Wood, Charles Hoskinson, Anthony Di Iorio and Joseph Lubin. In 2014, the development process began, and was funded by the crowd, and the platform began to go live on the 30th of July 2015. The platform lets anyone install permanent and immutable applications on it, through which users are able to connect. The Decentralized Finance (DeFi) applications offer an range of financial services that do not require the requirement for traditional financial intermediaries, such as brokerages banks or exchanges like the ability to let cryptocurrency users take out loans against their assets or loan them out to earn interest. Ethereum also permits the creation and trading for NFTs that are non-transferable tokens linked to digital artworks or other items from the real world and can be sold as exclusive digital property. In addition, many other cryptocurrency are ERC-20 tokens that operate that are based on the Ethereum blockchain, and have used the platform to conduct Initial coin offering.
Ethereum has begun to implement an upgrade called Ethereum 2.0 which include an upgrade from Proof of Stake and is aiming to improve transactions throughput through the use of the shading.


The instruction sets of the EVM are Turing-complete. Some of the most well-known uses for Ethereum have been the creation of the fungible (ERC20) or not-fungible (ERC721) tokens that have various characteristics and functions, such as crowdfunding (e.g. Initial coin offerings) as well as decentralized finance, decentralized exchanges, autonomous decentralized organizations (DAOs) predictions markets, games and gambling.

Contract source code

Smart contracts written by Ethereum are created in higher-level programming languages. They are later compiling into EVM bytes and uploaded onto Ethereum's blockchain. They are created using Solidity (a programming language that has similarity in a way to C as well as JavaScript), Serpent (similar to Python however it is removed), Yul (an intermediate language that has the ability to compile into diverse backends, including EVM 1.0, EVM 1.5 and eWASM are in the works), LLL (a low-level Lisp-like language) and Mutan (Go-based however, it was deprecated). It also had a researcher-oriented programming language being developed known as Vyper (a strongly-typed Python-derived decidable language). Compiler information and source code are typically released with the announcement of the contract, so that the users can view the code and ensure that it is compiling to the bytecode which is stored on the chain.
One problem with using smart contracts that are based on a blockchain public is that any bugs, including security flaws, can be seen to everyone but are not repaired quickly. An illustration for this would be the attack of 2016 on the DAO that was unable to be easily stopped or reversed.
It is currently being researched into how to make use of formal verification to describe and demonstrate non-trivial properties. The Microsoft Research report stated that the writing of solid smart contracts can be incredibly challenging in the real world and used the DAO hack as an example of this issue. The report described tools Microsoft has developed to validate contracts. It also noted that an extensive examination of contracts that have been published will likely uncover numerous security flaws. The report also said that one could confirm the compatibility between the Solidity program and EVM program.

ERC-20 tokens

The ERC-20 (Ethereum Request for Comments 20) Token Standard allows for the fungibility of tokens to be used on Ethereum. Ethereum blockchain. The standard, conceived in November 2015 by Fabian Vogelsteller in November 2015 implemented the API for tokens in smart contract. The standard allows for fungible tokens to be used in smart contracts. This standard offers functions such as moving tokens across accounts from one to the next and obtaining the current token balance on an account, as well as receiving the total amount of the token in the Ethereum network. Smart contracts that properly use ERC-20 processes are referred to as ERC-20 Token Contracts and assist in keeping an eye on the tokens created in Ethereum. A variety of cryptocurrencies have come into existence as ERC-20 tokens, and are distributed via the initial coin offerings. Fees for sending ERC-20 tokens have to be paid in Ether.

Non-fungible tokens (NFTs)

Ethereum can also allow for creating unique, indivisible tokens referred to as non-fungible tokens (NFTs).[80Because tokens of this kind are distinctive, they've been used to symbolize things as collectibles and digital art, memorabilia from sports, virtual real estate, as well as items in games. The first NFT initiative, Etheria, a 3D map that can be tradable, and also customizable hexagonal tiles was added to the network in the month of October 2015 and was demonstrated live at DEVCON1 during November of the same year. In 2021, Christie's auctioned a digital image that included NFT from Beeple to Beeple for $69.3 million, which made Christie the third most famous living artist according to price at auction time. Buildings, land and avatars of blockchain-based virtual worlds may also be purchased and sold in NFTs in some cases in the hundreds of thousand dollars.

Decentralized finance

The Decentralized Finance (DeFi) is an possible use example of Ethereum. It is a type of traditional financial instruments on an uncentralized structure, free of governments and companies of control, like money market funds that let users earn interest. Decentralized finance applications are typically accessible via an extension for browsers that supports Web3 or another software, like MetaMask which lets users directly communicate with the Ethereum blockchain via an website. Most of these DApps are able to collaborate and connect to develop sophisticated financial services. The same applies to financial services that are under.
The most prominent examples for DeFi platform comprise MakerDAO and Compound. Uniswap which is a decentralized platform that trades tokens Ethereum has grown from $20 million in liquidity , to $2.9 billion by 2020. As of October, the total of 1 billion had been invested in different DeFi protocols. Also by a process known as "wrapping", certain DeFi protocols allow synthetic versions diverse commodities (such as Bitcoin gold, oil and gold) to become accessible and exchangeable through Ethereum and are also compatible with all Ethereum's main wallets and applications. 

Permissioned ledgers

The Ethereum-based permitted blockchain variations are in use and are being studied for different projects.
- In 2017 JPMorgan Chase suggested the development of JPM Coin which is a permissioned version of Ethereum blockchain that is dubbed "Quorum". It It's "designed to cross the line between public and private when it comes to shifting derivatives and payments. The goal is to meet the needs of regulators who require an easy access to financial transactions and protect the privacy of individuals who aren't willing to reveal their identity or the details about their financial transactions to public. "
- The Royal Bank of Scotland has revealed that it has developed an Clearing and Settlement Mechanism (CSM) that is based upon Ethereum, the Ethereum blockchain and distributed ledger platform.


In Ethereum all smart contracts are stored publicly at every node on the blockchain. This comes at cost. Blockchains are a type of technology that is secured by design and is an illustration of distributed computing systems with high Byzantine reliability. "Secure by Design" implies that each new transactions is recorded in a fresh block that is linked to the previous and future blocks, as the chain. Anyone who wants to modify one block or transaction would need to alter all the preceding and subsequent blocks that are in the same block, which is feasible, but very difficult.
The disadvantage could be that issues with performance occur because every node is processing all smart contracts in real-time, which results in slower speed. As of January 16 the Ethereum protocol was able to process around 25 transactions in a second. In comparison, the Visa payments platform can process 45,000 transactions per second, prompting many to question the capacity of Ethereum. On the 19th of December the year 2016, Ethereum reached one million transactions in one morning for the very first time. Visa has also indicated that it is interested in the processing of NFT as well as Ethereum transactions. The company has also indicated interest in processing NFT and Ethereum transactions.
Ethereum developers are working on the sharding of the calculations. The following stage (Ethereum 2.) was revealed in Ethereum's Devcon 3 in November 2017.
Ethereum's blockchain utilizes Merkle tree structures for security reasons for scalability improvement, and to enhance hashing transactions. Like any Merkle tree , the implementation can allow for storage savings, membership proofs that are set (called "Merkle proofs") and lighter client synchronization. The network has experienced issues with congestion, for example in 2017 when it was impacted by the Cryptokitties.