Top 7 Ethereum Facts You Should Know
Ethereum (ETH) is regarded as the second most popular cryptocurrency after Bitcoin. While Bitcoin is the pioneering cryptocurrency and blockchain project, Ethereum brought smart contracts into the blockchain. It opened the world of blockchain to numerous applications and possibilities, which is why it is held in such high regard by developers and users all over the world. However, there are some interesting facts which most people don’t know about Ethereum.
Top 7 Ethereum Facts You Should Know
1. Ethereum is More Than Just a Crypto Currency
Those up to date with the technology might already be aware of this, but the general masses might not be privy to this detail about Ethereum. It is not just a cryptocurrency; it is a platform for decentralized apps. Developers can use their Ethereum (or Ether) to host their apps on the platform. Ethereum allows developers to build on top of its blockchain. Ethereum sees the blockchain as a medium to change the future of the world for the better.
2. Ethereum’s Programming Language is Called Solidity
Solidity is the Ethereum’s programming language for the smart contracts, but it is also used for creating other cryptocurrencies and in the development of dapps.
3. Ethereum is Financial Sector Friendly
Quite recently a startup by the name of R3, with the help of 11 banks, developed a system that worked with a blockchain for trading. These banks included HSBC and Barclays. The test was done by Microsoft on a platform which Ethereum created. Ethereum offers smart contracts to be built on its system which is why majorly the banks have a huge backing on this cryptocurrency.
4. Ethereum Split into Ethereum and Ethereum Classic in 2016
The split in Ethereum happened in 2016 owing to the DAO hack. DAO was a company which allowed users to choose which dapps will get funding on Ethereum platform. People were given DAO tokens as their voting chips in exchange for some Ether, the Ethereum token. However, a malicious user called the DAO hacker used a loophole in the system to launder away more than $50 million worth of Ether before the community could recognize something had gone wrong. To make it difficult for the hacker to use the stolen funds, the Etherum split occured. However, many users stood true to the old version, called the Ethereum Classic. The Ethereum that you know today in the market is the Ethereum which runs on a different blockchain after the split in 2016.
5. There is No Maximum Capping on Ether
While most cryptocurrencies, including Bitcoin, have a fixed number of coins that can be mined or generated, Ethereum is totally different and does not have any capping on the number of tokens to be produced. There is a slightly different limit placed on Ether which implies that only 18 Million Ether tokens can be mined every year. This policy was made keeping in mind the inflationary trends and practices.
6. Ethereum’s Blockhain Platform is Used For Hosting ICOs
All of the cryptocurrencies host their ICOs to generate funds by providing investors the respective tokens of their cryptocurrency. Most of these ICOs are hosted on the Ethereum blockchain since it makes developing apps and hosting ICOs much simpler. More than 77% of all ICOs are hosted on Ethereum platform.
7. Ether is Breaking All Records Today
Ethereum is very popular and sees a huge daily trading volume. Its popularity was second best after Bitcoin. Ethereum reached its all-time high of $1,430 in January 2018.
More about Ethereum
Ethereum is the most popular decentralized apps platform in the blockchain industry. While it does have some flaws such as issues of scalability and using proof of work, it is still well ahead of its competitors. With continuous efforts to solve its and improve the service, Ethereum is set to remain one of the best dapp platforms.
The community is really responsive and helpful for the developers as they not only vote for the happenings in the blockchain but also provide valuable feedback and help improve the service. Many think that Ethereum is more centralized because it has a team of core developers who control the blockchain. But this is only barely true since all decisions are made via public consensus. The core development team is always open to feedback and criticism from other developers, which further helps them in improving Ethereum.