What is Ethereum?

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.

Facts about Ethereum

Not Just a Cryptocurrency

Those within the cryptocurrency world would probably know about 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 the Ethereum to host their dapps on the platform. Ethereum helps developers build on top of its blockchain as it sees the blockchain as the medium to change the world for the better.

Favored by Banks

Quite recently a startup by the name of R3 used the help of 11 banks to troubleshoot 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. While this is a sure shot sign of the trust Ethereum enjoys from banks, its smart contracts played a huge part in gaining this trust.

Smart contracts, dapps, and creating other cryptocurrencies

Solidity is Ethereum’s programming language for its smart contracts, but it is also used for creating other cryptocurrencies and in the development of dapps.

Used to host ICOs

All cryptocurrencies host their own ICOs to generate funds by providing investors 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 blockchain.

No cap on Ether Available

While most cryptocurrencies, Bitcoin included, have a cap on the total number of coins available, Ethereum does not fall in this category. The only sort of limitation imposed on Ethereum mining is that only 18 million Ether can be mined every year.

Ethereum (ETH) is the most popular decentralized app platform in the blockchain universe. While it suffers from its own issues of scalability and using proof of work, it is still way ahead of competitors. With constant efforts to solve its issues and improve the service, Ethereum is set to continue leading the pack of dapp platforms.

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