Ethereum (ETH) Crypto Review: Blockchain on the Rise
Ethereum (ETH) Many crypto investors who have spent more than a minute in the crypto world would be aware of the Ethereum project. Since Ether is one of the top three cryptocurrencies by market cap, it enjoys lots of support in the industry. Due to the massive increase of new investors in the last few months, we decided to write an in-depth review on Ethereum considering it’s one of the most promising crypto projects to date.
This review will likely benefit new crypto investors more than seasoned crypto investors who already know of the Ethereum network. In the discussion, I will be covering the investment potential of the Ethereum project. The four key areas I will cover will be the following:
*Introduction- What is Ethereum?
*The Team- Who is behind the Ethereum project?
* Marketing- Are they marketing their brand well?
* Investment Analysis- Is Ethereum a profitable investment?
Ethereum (ETH) Cryptocurrency review: Introduction
So what is Ethereum exactly? Well, Ether is an open-source, public, blockchain-based distributed computing platform that features smart contract (scripting) procedures. Ethereum offers a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can be used to execute scripts that run on a global network of community nodes. Ethereum offers a token named “ether,” which can be transported between accounts and utilized to reimburse nodes for computations processed. “Gas,” an internal transaction pricing mechanism allocates resources on the network and helps reduce spam.
Ethereum was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher, and programmer. The Ethereum Development was funded by an online crowdfunding between July and August of 2014.The Ethereum network was then launched on July/2015 with a total of 11.9 million coins “premined” for the crowdsale. This accounted for approx 13 percent of the circulating supply.
In 2016 Ethereum faced a huge setback, as a result of the collapse of The DAO project, Ethereum decided to fork into two separate blockchains – supporters voted on the new more popular forked version that became known as Ethereum (ETH). The original blockchain carried on and is now known as Ethereum Classic (ETC).
The token of the Ethereum blockchain is called Ether. It is a symbol similar to how stocks are listed the code is ETH and is it listed on many cryptocurrency exchanges. The token can be used to pay for transaction fees and computational services that are required to use the Ethereum blockchain.
Smart contracts are settled exchange mechanisms that are controlled by digital means and can convey the direct transaction of value between untrusted agents. On the Ethereum platform, smart contracts are placed in the nodes of the blockchain.
Many Use case proposals have begun to take place on the Ethereum network some of these have included financial, the internet-of-things, transparent and fair Casinos, tracking packages, decentralized data storage, etc.
At the time of writing this article, Ethereum holds an impressive market cap valued at approx $59,994,971,550 USD and has a current circulating supply of 96,298,569 ETH tokens.
Ethereum (ETH) Blockchain Review: The Team
In 2008, an unknown developer commonly referred to as Satoshi Nakamoto (or developer groups) created the revolutionary bitcoin as a method to transfer value over the internet.Four years later, a new revolution would begin to take place.
Vitalik Buterin, an ambitious programmer from Toronto, first became interested in Bitcoin in the year of 2011.Vitalik co-founded the online news website Bitcoin Magazine during that same year; he wrote numerous articles in regards to crypto and blockchain technologies. Vitalik then began to code for various crypto companies.
During that time Vitalik started to come up with an idea of a platform that could go beyond the current use cases of Bitcoin. Vitalik released a white paper in 2013 that detailed an alternative platform that could be designed for decentralized applications (DApps). The system Vitalik was describing in his whitepaper would be the birth of the Ethereum network.
Ethereum allows users and developers the ability to create smart contracts, self-enforcing code that can be utilized for a wide range of applications.For his dedication to the Ethereum network, he was nominated and named a 2014 Thiel fellow, a contest that awards participants with a $100,000 cash prize.Once Vitalik unveiled the Ethereum white paper, other developers soon joined and began contributing to the Ethereum network.
Dr. Gavin Wood, one of the Ethereum co-founders, wrote the yellow paper, some Ethereum enthusiasts refer to it as the “technical bible.” The yellow paper covers the technical aspects of the Ethereum virtual machine (EVM) which handles the state of the ledger and processes the smart contracts.
Vitalik and the other co-founders needed to raise funds to launch the Ethereum network, so they began a successful crowdfunding campaign in July 2014.Participants then purchased Ether tokens that function similar to shares in the project.
Assets that were generated from Ethereum’s crowdsale and project development are now under supervision and management by the Ethereum Foundation. The Ethereum foundation is a nonprofit entity based in Switzerland.
Below I have listed some of the current and past team members that were essential to the development of the Ethereum network:
Vitalik Buterin: Is the Creator and co-founder of the Ethereum blockchain. Vitalik is the lead developer that works on cutting-edge developments on the Ethereum Network. Buterin is a general partner at Fenbushi capital.He advises a small number of blockchain companies such as the Kyber network, Augur, WeTrust, Nuco, and Omisego. Vitalik is also one of the three team members that are part of the Ethereum foundation team.
Nick Johnson: Is a Software Engineer that graduated from the University of Canterbury. Nick has played a significant role in developing the Ethereum platform. Past experiences include working with Google, Lumi, and other prominent technology companies.
Jeffrey Wilcke: Is another co-founder of the Ethereum network and lead developer for go-ethereum. Past work experiences include working with StudyFlow and other famous tech organizations. He is one of the three team members that form the Ethereum foundation.
Ming Chan: Is the Chief Executive Director of the Ethereum Foundation. She is one of the three team members that form the Ethereum Foundations team.Past work experiences include working as a consultant at major technology firms. She holds three degrees two being from the prestigious Massachutes Institute of Technology-MIT.
Joseph Lubin: Is a Co-Founder of the Ethereum project Joseph holds a degree in Electrical Engineering and Computer Science from Princeton. He is the founder of ConsenSys a blockchain production studio that is responsible for producing decentralized applications(DApps) on the Ethereum network.
Vlad Zamfir: Is a researcher, analyst that has been working on the Ethereum project for several years now. He is best known for his work and research on proof-of-stake and blockchain sharding technologies. He is a graduate of the University of Guelph that specialized in advanced mathematics.
Gavin Wood: Is a Co-founder of the Ethereum project and former CTO he was the co-designer of the Ethereum protocol. Gavin is the co-founder and director of Parity Technologies. He holds a Ph.D. in music visualization for human-computer interfacing from the University of York. He also serves as an advisor at the following tech firms Orchid Labs and Rivetz Inc.
Anthony Diiorio: Is the Co-founder of the Ethereum network. He keeps himself busy as the CEO&founder of Jaxx Blockchain interface and CEO&founder of Decentral. Anthony’s previous work experience includes serving as the Chief Digital Officer on the Toronto Stock Exchange. He is an advisor to many recent crypto projects like Canadian based Etherparty.
Mihai Alisie: Co-founded Ethereum and served as vice president of the Ethereum foundation before stepping down to pursue other interests. Mihai and Vitalik cofounded Bitcoin magazine together. He is also the founder of his latest new venture the AKASHA project.
Due to the far-reaching effects of the Ethereum network, there are many other prominent figures, and team members that I have not included, they have also made significant contributions to the Ethereum blockchain and team.
The Enterprise Ethereum Alliance was created to bring together enterprises, startups, academics and Ethereum developers. The EEA boasts a list of influential members.Corporations such as Microsoft, Intel, J.P. Morgan, Samsung SDS, Mastercard and other high profile companies have joined the Enterprise Ethereum Alliance.
Ethereum (ETH) Crypto Review: Marketing Strategy
Ethereum does well in regards to marketing it’s one of the most sought-after cryptocurrencies in the crypto ecosystem. Ethereum has a massive social media presence on sites such as Twitter, Facebook, and Reddit. The Ethereum website also has a personal blog where they update users on recent developments.
If you wish to be involved in the community, Ethereum meetups are similar to Bitcoin meetups, and they are becoming increasingly more common.Many crypto enthusiasts can join together and collaborate with like-minded individuals who believe in smart contract technology. Meetup.com is a popular website that I recommend using if you’re interested in getting together and learning from fellow crypto investors and individuals.
Developers can find helpful resources on the Ethereum website such as a guide to the solidity language and a link to Stack Exchange a website that functions as a question and answer site for Ethereum users.
Ethereum (ETH) Supercomputer Review: Investment Analysis
The Longterm outlook seems bright for Ethereum with over 50% of the recent ICOS utilizing the powerful network they will be using Eth as gas to process transactions which will further increase the valuation of the Ethereum network.
I believe that in the future when Ethereum plans to move away from mining and the proof of work (pow) model to a more environmentally friendly proof of stake (pos), consensus model the price will likely further increase as people will be incentivized to hold their Ethereum tokens.
If I were to recommend two cryptocurrencies to hold then, Ethereum and Bitcoin would be the top two currencies as they are frequently paired with other cryptocurrencies. Ethereum is often used to purchase alt coins since the low fees, and transaction speeds can be a lot more efficient than using Bitcoin to buy altcoins.
Furthermore, new investors often purchase Bitcoin and Ethereum over other popular cryptocurrencies. I believe an increased interest in Ethereum will lead to a higher price valuation over time as cryptocurrencies and blockchain technologies become widely adopted. With all of the projects and companies building on the Ethereum network in 2018, this should be a long-term hold.
(As always please do your research before investing in crypto projects this review is my own opinion and is not meant to be taken as investment advice.)
If you’re new to Ethereum, please check out below for helpful tips and links that will help get you started in Ethereum.
(Disclaimer some links below contain affiliate links)
Frequent Questions Ethereum(ETH) investors ask:
How can I purchase Ethereum?
One of the most common methods to purchase Ethereum is on websites called exchanges they function similar to online brokerage accounts where users buy traditional assets such as stocks.
The most straightforward and trusted exchange to use for new investors is called Coinbase they are a Y-Combinator backed company. YCombinator has advised and funded many successful startups such as Airbnb, Reddit, Dropbox, etc.
Coinbase is simple to use since you can add credit cards such as Visa, or Mastercard and then use your credit card to purchase popular cryptocurrencies like Bitcoin, Ethereum or Litecoin.
A common misconception among new Ethereum investors is that they have to purchase one whole Ethereum token. Investors do not need to buy one Ether token but can instead buy a percentage such as 0.25%,0.50% of Ether.
Where do I store Ethereum?
Similar to Bitcoin and other cryptocurrencies you will want to move Ethereum off of the exchange as soon as possible since they are high-value targets for hackers. Exchanges can also be shut down by governments or the malicious operators themselves. My favorite wallets to use for storing Ethereum are the following:
Common Ethereum (ETH) and Crypto terminology:
Ether: Ether is a necessary element it acts as fuel for operating the distributed application platform Ethereum. Ether is a form of payment used by the clients of the platform to the machines that are executing the requested operations.
Gas: Seems to have various associated definitions that include: Gas Prices, Gas Cost, Gas Limit, and Gas Fees. The idea behind Gas is to have a stable value for how much a transaction or computation will cost on the Ethereum platform. If the price valuation of Ether increases the gas price should go down so that the fees will remain stable.
ERC-20 Token: Functions as the Ethereum networks standard token it’s necessary for Ethereum smart contracts. It was created in 2015, ERC-20 defines an approved list of rules and criteria that an Ethereum token has to implement. Many projects launched on the Ethereum network have their own ERC-20 based token.
Smart Contracts: A smart contract, also known as a crypto contract, it is a computer program that holds and processes the transfer of digital assets between parties under specific criteria.The smart contract agreements are then stored on blockchain technology.
Ethereum Blockchain: Is a decentralized blockchain, with a Turing complete scripting language that allows the processing of smart-contracts on the Ethereum network.
Altcoins: Refer to alternative cryptocurrencies other than Bitcoin. Examples of altcoins include Litecoin, Ripple, Monero, etc.
Ethereum(ETH) relevant documentation and information:
Whitepaper: Explains the technical aspects of the Ethereum Network.
Yellow Paper: Similar to the White paper it covers the use cases and technical aspects of the Ethereum network.
Ethereum Homestead Documentation: Is a collaborative effort that compiles a list of valuable information concerning the Ethereum network.
Github: The source code can be found here
State of the DApps: Is a website that has curated a list of over 877 projects building decentralized applications on the Ethereum Network.
Ethstats: Covers stats on the Ethereum network such as Gas price, the last block mined, etc.
Etherscan: You can use the website to verify if your transaction went through to your wallet or exchange.