(ETH) The Ethereum network launched in 2015 with bold ambitions of creating a “world computer,” the Ethereum Virtual Machine (EVM). The principal innovation was the ability to execute complex programs within the network, similar to how a computer operating system enables computers to run a variety of programs. We call these programs “smart contracts,” and they form the basis of decentralized finance, NFT’s, and most of web 3.
Ether (ETH) is the fuel for this computing platform. It was originally mined in a Proof-of Work style similar to Bitcoin but switched to a Proof of Stake consensus in 2022. The EVM enabled the creation of thousands of unique tokens that each serve a different function or provide a value proposition unrelated to the function of ETH. Many of these “ERC-20’ tokens remain in the top 100 cryptocurrencies ranked by market capitalization. The genius of this design is that the ERC-20 tokens still require the utilization of ETH to operate, thus ensuring that the value of ETH is supported by the demand from this rapidly expanding ecosystem. This function of ETH is commonly referred to as a “gas fee.” During very active trading times, this gas fee can become quite expensive and has inspired the development of competing blockchains that are less costly to use. Smart contracts are being explored and adopted by numerous industries and organizations, including governments and central banks. ETH is currently the second largest cryptocurrency and will remain a powerful and valuable asset for the foreseeable future. View the ETH chart at CoinMarketCap, be sure to set the time frame to “All” to witness the phenomenal growth of this asset.
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