Ethereum as evolving technology and what’s new
Ethereum could be categorized as a cryptocurrency as well as a decentralized open source blockchain system. Well, it is both; just that the latter comes before the former. It was firstly a blockchain system before featuring its own cryptocurrency known as the Ether (ETH).
Simply put, it is a blockchain platform which houses several cryptocurrencies and is sometimes used in the integration and execution of decentralized smart contracts. Interestingly, unlike several other blockchain networks, Ethereum has never suffered any downtime since its inception.
In my last two articles, I talked about cryptocurrency and blockchain in a simple and less technical way that makes it appeal to the reader. If you are yet to read those, you can check the cryptocurrency out here and the blockchain, here.
In this article, we’d be talking about Ethereum as an evolving technology that is currently gaining popularity in the virtual realm. There is also a recent development known as Ethereum merge and I’d demystify everything in this article.
Ethereum Blockchain: An Overview
Known for its native digital currency, Ether (ETH), Ethereum is a decentralized global software developed on blockchain technology. It can be used by anyone to build a well-secured digital technology. That is, as a technology hosted on the blockchain, it can also be used to host others.
Its token, Ether, can use to finance the operations going on in the blockchain. However, it can also be traded and used to pay for commodities or purchase other digital assets. Some features of Ethereum include scalability, decentralized, secured, and programmable.
The programmability of Ethereum implies that you can develop and deploy your own decentralized software applications on its network. The data management and control of the applications you build are carried out on the Ethereum blockchain.
Ethereum should not be confused with the blockchain. While the former is more like a marketplace, the latter is only a payment network. You can carry out any operation relating to social networks, games, financial services etc. on the Ethereum network.
Ethereum’s Ether (ETH)
The self-owned digital currency for Ethereum is Ether (ETH) which can be used to carry out different transactional operations in the blockchain. Since it is decentralized, you don’t need a government certification before you send or receive it from anywhere across the globe.
Every activity carried out on the Ethereum network requires some operational expense. This fee is paid in Ether. You will need at least an adequate amount of ETH before you can use the Ethereum network. The price of Ether (ETH) is currently $4,246.22 in the marketplace.
What’s special about Ethereum?
1. Never suffered a downtime: Even though, Ethereum hosts millions of applications and cryptocurrencies, it has never experienced downtime since 2015.
2. House for other cryptocurrencies whilst having its own: ETH works as a platform for numerous other cryptocurrencies and for executing decentralize smart contracts.
3. Leading currency: Ether is one of the most decentralized cryptocurrencies out there coming second after Bitcoin.
What’s new? Ethereum merge
To move the Ethereum blockchain away from the antiquated proof-of-work (PoW) mechanism, the proof-of-stake (PoS) Beacon Chain and the Ethereum Mainnet are joined.
Ethereum has officially shifted to a PoS paradigm as of mid-September 2022. A new version of Ethereum, Ethereum 2.0, was born as a result. As a result, Ethereum’s energy usage will be reduced by 99.95%, enabling the Ethereum ecosystem to grow even further.
With the switch, the entire blockchain has been switched to new proof-of-stake (PoS) validator nodes, which cost 32 ETH to join. Investors’ access to ether tokens won’t change at all, and Ethereum-based applications should continue to run as usual.
As a beginner, this might sound a little complex, but with time, you will understand what the new changes are all about. It is highly recommended that you stick to your wallet and thread with care before considering migrating.
Final Thoughts
Ethereum can simply be described as an all-purpose blockchain network that can be programmed to do anything. It is not only a platform for hosting cryptocurrency, but it also serves as a financial network featuring its token.
Interestingly, the blockchain has never experienced any downtime since it was built. There are a series of development happening on the platform, the most recent of its being Ethereum merge and change to proof of stake.
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