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.
Interesting Facts about Ethereum
- Ethereum (ETH) is not simply 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.
- Ethereum is 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.
- Solidity is used for 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.
- Ethereum forked into Ethereum and Ethereum classic in 2016
The hard fork in Ethereum happened in 2016 in the wake of the DAO hack. DAO was a company which allowed users to choose which dapps will get funding on Ethereum platform. People were given DAO tokens as their voting chips in exchange for Ether, the Ethereum token. However, a malicious user called the DAO hacker used a loophole in the system to launder away more than $50 million worth of Ether before the community even realized something had gone wrong. To make it impossible for the hacker to use the stolen funds, the hard fork took place. However, many users stood true to the old version, which is called Ethereum Classic. The Ethereum that you know now is the Ethereum that runs on a different blockchain post the hard fork.
- Ethereum is 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.
- There is 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.
- Ether is reaching new heights
Ethereum (ETH) is quite popular and sees a huge daily trading volume. Its popularity was evident when it reached its all-time high of $1,430 in January this 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.
The community is really helpful for the developers as they not only vote for the happenings in the blockchain but also provide valuable feedback and help improve the service. While many think that Ethereum is more centralized because it has a team of core developers who control the blockchain, all decisions are made via public consensus. The development team is always open to feedback from other developers, which only helps in improving Ethereum (ETH).