Ethereum is the second-largest cryptocurrency in the world. Though bitcoin is the largest by a wide margin, Ethereum has a lot going on for it and is sure to be sticking around for the long term. As bitcoin flounders, many investors will be looking to get into Ethereum as a replacement. In this video, we tell you the top ten untold truths about Ethereum so that you know precisely what you’re going in for. Before we dive into the video, please make sure to like, subscribe and turn on post notifications. Our content is always interesting and engaging, and you wouldn’t want to miss a single video.
10. It was crowdfunded One of the most interesting things you need to know about Ethereum is that it was crowdfunded. The project was first proposed in 2013 by developer and bitcoin enthusiast Vitalik Buterin. In 2014, development was crowdfunded, and the network went live with an initial supply of 72 million coins on 30 July 2015. This was a cheap way for the founders of Ethereum to get their project off the ground. Thus far, other cryptocurrency developers have followed suit to great success.
9. No supply cap Bitcoin is infamous for its 21 million supply limit. This means that the number of bitcoin in circulation will never ever surpass that figure. For Ethereum, though, there’s no such supply limit. Instead, there’s a limit to the amount of Ethereum that can be mined within a single year. This figure is 18 million. Experts know that the key to maintaining decent market growth is to find a fine balance between supply and demand. Although Ethereum has no ultimate supply cap, the annual cap will make it easier for the supply and demand dynamic to be balanced.
8. It helps other coins launch Ethereum’s platform has come to be home to the cryptocurrency launch strategy known as an Initial Coin Offering or ICO.
This term refers to a situation where new cryptocurrency developers offer some of their new tokens to the public in exchange for capital in order to recoup development costs or fund them entirely. Other cryptocurrencies like Cardano have used this strategy. It just so happens that Ethereum is one of the only secure networks where this kind of event can be hosted. And so, although these coins are Ethereum’s competition, the company doesn’t consider hosting such ICOs as a conflict of interest.
7. Both centralized and decentralized Ethereum is both centralized and decentralized. This means that although its platform has no central server or mainframe, the entire structure is still overseen by the original developers. And so, in this regard, it’s the best of both worlds for Ethereum. Their framework is supported by the entire might of the internet. In the meantime, the developers are apple to create new apps and push them out onto the platform.
6. Ethereum is supported by large companies Ethereum’s framework is so solid that some large companies have supported the platform. Some of the most famous companies are Samsung, Toyota, Microsoft, J.
P.Morgan, Merck, Intel, Deloitte, and Bank of Canada.
The support of these large companies means that Ethereum is a little safe from regulatory action. These companies have the money, power and influence to somewhat shield Ethereum. Besides, the fact that these giants trust Ethereum should be good enough in and of itself. After all, they are some of the most successful companies in existence.
5. Ethereum indirectly led to the rise of Cardano One untold truth about Ethereum is that it indirectly led to the rise of one of its competitors, Cardano. The founder of Cardano, Charles Hoskinson, was actually a co-founder of Ethereum as well. Unfortunately, he left Ethereum after a dispute with Vitalik Buterin, another co-founder of Ethereum. Vitalik wanted Ethereum to remain a non-profit organization. On the other hand, Hoskinson was of the opinion that it should switch to a for-profit venture. With the two unable to see eye to eye, Hoskinson left to oversee his own venture. Today, Vitalik is worth about a billion dollars and was considered one of the world’s first crypto billionaires.
4. Framework will be improved Like bitcoin, Ethereum is one of the older cryptocurrencies in existence.
These legacy coins utilize a less developed version of blockchain functions which require high energy input and can’t store much information. While these limitations have held back bitcoin and Ethereum, the team behind Ethereum has promised to improve the technological framework behind their platform so as to enhance its capabilities. This should be of particular interest to those who are worried that Ethereum’s framework is outdated.
3. Is highly scalable Connected to the point before this one, Ethereum is highly scalable. As the framework expands, it will be able to support so many transactions and other blockchain functions without crashing or going under. Already, the framework of Ethereum is solid enough. So much so that some of the biggest companies in the world trust it. In any case, scalability has been the bane of other cryptocurrencies as they have surged in popularity. Ethereum’s investors can rest assured knowing that the platform can and will handle the growth.
2. It is not really environmentally safe Here’s the thing about Ethereum. Just like bitcoin and other older cryptocurrencies, it isn’t really environmentally safe. Blocks of Ethereum still need to be mined, and this requires high energy input, which isn’t friendly to the environment.
This environmental damage is one of the main reasons why Ethereum has been the target of regulatory action right along with bitcoin. In any case, Ethereum’s overseers have promised to shift the framework onto a more environmentally sustainable platform. If they can achieve this in time remains to be seen.
1. More of a platform than a currency Bitcoin is exclusively a cryptocurrency. It is intended to store value in a way that cannot be manipulated or stolen by anyone. When Ethereum co-founder Vitalik Buterin first proposed Ethereum, he wanted to create something that could better utilize the capabilities of blockchain technology rather than just storing value. And so, Ethereum was created to be more of a blockchain platform than a cryptocurrency. Although it can store value with tokens like bitcoin, it can also achieve so much more.
As we come to the end of this video, we hope you have learned a lot about the untold truths of Ethereum.
These facts will help you understand the coin’s background better and just might be the X factor you need to predict its behaviour. Is there some untold truth of Ethereum you think we neglected to include? Please let us know in the comments.
Till then, take care of yourself. Catch you later.
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