There are thousands of cryptocurrency available in the crypto space today. However, not all can be considered reliable for investment in digital assets.
In this series of Know Your Digital Asset (KYDA) series, we will explore cryptocurrencies in which are widely accepted by regulated exchanges and with real-case use.
What is Ethereum (ETH)?
Ethereum is an open-source and public blockchain-based distributed computing platform to build decentralized applications and operating system with smart contracts feature. Ether (ETH) the token generated by the Ethereum platform.
A cryptocurrency researcher and programmer, Vitalik Buterin visualized Ethereum as a platform for developers to write programs on the blockchain. He used similar blockchain designs and protocols like Bitcoin and improve it to support applications beyond currency issuance with the implementation of smart contracts.
The Wonder of Dapps
Ethereum blockchain is currently the leading blockchain platform used for Decentralized Applications (DApp). At the time of writing, there are 2.9K DApps based on the statistics by the State of The DApps. It is the largest blockchain platform for DApps.
The platform has given birth to various DApp projects, from games like Axie Infinity to the booming Decentralized Finance (DeFi) like Uniswap. It allows ETH to be more than just a digital asset but a high utility asset used with existing DApps.
The Ethereum 2.0 Upgrade
With the demanding numbers of usages and projects, the Ethereum platform is reaching its limit. According to the ethereum.org site, Ethereum 2.0 (ETH 2.0) will address the speed, energy, and scalability issues.
ETH 2.0 will be able to process transactions faster at 100,000 tps (transaction per second) compared to the current speed of 15 tps. Currently, Ethereum blockchain is using proof-of-work (pow) and consuming a lot of resources for validators or miners to run. However, ETH 2.0 will use proof-of-stake (pos) that will allow a more secure network and reduce resource commitments. The implementation of shard chains and beacon chains will allow the Ethereum network to keep up with the ever-growing usages.
For Malaysian, ETH is an approved digital asset and available on the approved Digital Asset Exchanges.
It is like you have a piece of lego that you can use on bigger blocks.
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