- Price $301.22
- Market Cap
Ethereum is a decentralised system, which means that it is not controlled by any governing entity. It is being run by thousands of volunteers’ computers around the globe. Any user’s personal information will stay on their computers, while any content will stay in full control of its creators, throughout having to obey any rules imposed by hosting services.
Essentially, Ethereum took the technology behind Blockchain and built on its capabilities.
Although Ethereum and Bitcoin are similar, there are also pretty different in many ways. Ethereum offers its users a lot more than just a medium of exchange, it also features smart contracts, Ethereum Virtual Machine and allows its users to use its currency, Ether for peer-to-peer contracts.
As it is a decentralised system, it utilised a peer to peer approach. This means that every interaction is supported by the users that are taking part in it, there is no controlling authority involved at all.
A software platform like this is in need of a currency to pay for all of the computational resources that are needed to run a program or application. That is where the token of Ether comes in. Ether acts as a both a form of digital currency and as the ‘fuel’ for the decentralised apps in the network. There are two primary ways of obtaining Ether, you can either buy it or mine it. The most common method is buying it on exchanges, or alternatively you can obtain Ether through peer-to-peer training. The other option is to mine Ether where users use their computing power to solve some complex problems, and then are rewarded every time they mine a block.
The Ethereum blockchain is capable of bringing trust, transparency, security and efficiency into a range of services, businesses and industries.
The project was publicly announced for the first time in January 2014.
In January 2014, Ethereum was fully announced into the cryptocurrency world. The announcement took place at the North American Bitcoin Conference in Florida. Before the new cryptocurrency was officially launched, a large pre-sale of tokens was needed in order to ensure enough developers, miners, investors and stakeholders, which would really get it up and running.
In July of 2014, Ethereum launched a pre-sale of its Ether tokens to members of the public, and by August of that same year, sales had raised more than $14 million.
In October of 2014, following the results of the pre-sale, Ethereum protocol permits the creation of 5 ETH for every block mined, but it wasn’t long before questions and doubts begun to emerge about both the scalability and the security of the Ether. This worry was strengthened in June 2016 when an anonymous entity claimed $50m in Ether, an attack that raised many questions about Ether’s security.
It was this debate that lead to Ethereum splitting into two, with some people favouring Ethereum still, while others moved onto the new branch of Ethereum Classic.
Out of all the cryptocurrencies out there, Ether has some of the biggest and most frequent price fluctuations, which can be seen as a warning sign to many investors.
In January 2016, Ether was trading at around the $1 mark, but in just 6 months the currency went through a 15 fold increase.
Reasons behind Ethereum price spike
In May 2016, Ethereum price changed dramatically. This was due to a project which saw thousands of people overall putting $150 million into of the biggest crowdfunding projects in history. This project was called the Decentralised Autonomous Organisation. Back then, Ether was trading at an all time high, due to the fact that the project was funding completely using Ether. At this time, it was trading at $14.80, and although this may not seem like a lot due to the price that it has since reached, this was a huge peak in the value of Ether at the time.
This project proved to be so popular among holders of Ether that it now accounts for almost 14% of the value of all the Ether that is currently in circulation.
In March 2017, Ether was trading at $52.31, with just a few months prior to that it was around the $20, showing just how fluctuant that price is.
In June of 2017, Ethereum rallied above $400 in value, which was an incredible 5001% rise in its value since January of the same year.
Today, Ether is still rolling on a high of over $500, and investors are hoping that it will stay this was for the foreseeable future.