What is Ethereum (ETH) crypto? Ethereum (ETH) is an open-source, decentralized blockchain revolutionizing the digital landscape. But Ethereum is much more than a payment system. It empowers developers with Turing-complete smart contracts and hosts a myriad of decentralized applications (dApps), creating a vibrant marketplace for financial services, games, and innovative blockchain-based applications.

At the forefront of the cryptocurrency market, Ethereum boasts the second-largest market cap, second only to Bitcoin. While Bitcoin reigns as digital gold, Ethereum has earned the moniker of digital silver due to its widespread adoption and potential for growth. Anchored by its native cryptocurrency, Ether (ETH), Ethereum enables seamless transactions and serves as the foundation for a thriving ecosystem of decentralized applications.

The Ethereum network stands as a beacon of innovation, driving the emergence of groundbreaking trends in the crypto industry. With its unrivaled smart contract functionality, Ethereum is a driving force in decentralized finance (DeFi), non-fungible tokens (NFTs), social media, and blockchain gaming. As the epicenter of Web 3.0, Ethereum opens up endless possibilities, from Play-to-Earn gaming experiences to the immersive metaverse.

Ethereum has revolutionized the blockchain landscape, becoming a versatile platform transcending traditional digital payments. With its robust smart contract capabilities and thriving ecosystem of dApps, Ethereum empowers developers to create groundbreaking applications across various industries. As Ethereum propels the crypto industry forward, its potential for growth remains unmatched. Embrace the power of Ethereum and become part of the decentralized revolution.

The history of Ethereum (ETH) is marked by several significant milestones and events that have shaped its development and impact on the blockchain industry.

Who Founded Ethereum?

In late 2013, visionary programmer Vitalik Buterin introduced the groundbreaking concept of Ethereum. This pivotal moment was followed by the release of Ethereum's influential white paper on November 27, 2013, which outlined its technical design and introduced the revolutionary notion of smart contract functionality.

When was Ethereum Created?

The first crowdsale of ETH took place in 2014, raising funds essential for Ethereum's initial development. Fast forward to 2015, and the Ethereum platform became a living reality, bringing the power of decentralized applications to the world.

From White Paper to ICOs and Beyond

During this transformative journey, Buterin collaborated with Dr. Gavin Wood, co-founding Ethereum after an official announcement in January 2014. The momentous period also witnessed the publication of the cryptocurrency's yellow paper in April 2014, providing in-depth insights into the Ethereum Virtual Machine (EVM) and its technical specifications.

The crowdsale of Ether (ETH) took the world by storm from July 22 to September 2, 2014, offering users the opportunity to acquire Ethereum's groundbreaking cryptocurrency using Bitcoin. Astoundingly, the Ethereum Foundation successfully raised around $18 million by selling approximately 60 million ETH during this historic event. These funds were instrumental in fueling the initial development phase of the Ethereum blockchain network.

The pivotal turning point arrived in July 2015 with the much-anticipated launch of Ethereum's mainnet, heralding the era of Initial Coin Offerings (ICOs) on the blockchain. This remarkable breakthrough opened doors for decentralized fundraising and revolutionized how startups and projects could secure funding.

However, Ethereum's history wouldn't be complete without acknowledging a critical event that unfolded in April 2016. The infamous hack of The DAO, a decentralized venture fund built on the Ethereum platform, resulted in a staggering loss of approximately $150 million from its ICO. As a response, the Ethereum community initiated a hard fork, leading to the emergence of the Ethereum blockchain in its current state. Following the hard fork, the original blockchain currently exists as Ethereum Classic (ETC).

The Journey to Ethereum 2.0

In December 2020, Ethereum started its journey toward Ethereum 2.0, transitioning from a proof-of-work consensus to a proof-of-stake consensus network. The upgrade to Ethereum 2.0 is crucial for overcoming the technical limitations that have hindered the Ethereum network, such as network congestion, scalability issues, and limited accessibility.

The Ethereum Merge is a groundbreaking event that revolutionizes Ethereum's blockchain by transitioning from proof of work to proof of stake. Discover how this transformation will impact energy efficiency, scalability, and network enhancements.

The Merge Transformed the Ethereum Blockchain

This momentous event marks the migration of the Ethereum mainnet to a proof of stake model, bidding farewell to the energy-consuming proof of work consensus. The official commencement of the Merge occurred on September 6, 2022, with the Bellatrix network upgrade, paving the way for the Paris network upgrade on September 15, 2022.

Ethereum Network's Shift to PoS: Enhanced Energy Efficiency and Scalability

One of the key benefits of the Ethereum Merge is improved energy efficiency, addressing concerns about the environmental impact of traditional mining processes. By implementing a proof-of-stake model, the Merge drastically reduces energy consumption, making Ethereum a more sustainable blockchain ecosystem.

The Ethereum Merge introduced essential upgrades, propelling the platform for dApps towards unparalleled scalability. With the transition to proof of stake, the Ethereum Foundation developers will shift their focus to sharding, which solves network congestion issues and significantly improves the network's throughput.

Ethereum 2.0: The Future of Ethereum

The Ethereum Merge ushers in a new era for the network, marking the foundation for Ethereum 2.0. By adopting PoS consensus, Ethereum strengthens its decentralized nature by lowering the hardware requirements for validators and empowering more individuals to participate in securing the network.

Another milestone in April 2023 followed, called the Shanghai Upgrade, unlocking the ETH staked on the Beacon Chain and the rewards. Faster transaction confirmations and a remarkable 99% reduction in energy consumption by validators make Ethereum a formidable force in the blockchain space.

Is Ethereum a good investment? As the second-largest cryptocurrency, Ethereum offers high liquidity and trading volume. Its lower price makes it more accessible for retail traders. Ethereum's largest ecosystem for dApps, DeFi, NFTs, and blockchain gaming makes it highly versatile for web3 adoption.

Furthermore, Ethereum has the potential to become deflationary as its circulating supply reduces through token burns. If the circulating supply of ETH starts to decrease, its investment value could increase, leading to an uptrend in the Ethereum price.

However, it's important to note that the current price of Ethereum is subject to high levels of unpredictability and volatility. You should assess your risk tolerance and perform technical analysis and fundamental analysis to make an informed investment decision.

While we cannot reliably offer an Ethereum price prediction for any timeframe, you could monitor several factors to understand the price trends in ETH, including:

Level of On-chain Activity on Ethereum Network

The level of network usage and adoption of Ethereum's blockchain platform can impact its price. Higher use and adoption, including the number of active users, dApps built on Ethereum, and transaction volume, can positively influence the price of Ethereum. It reflects the growing utility and value of Ethereum network.

Ethereum's Technological Upgrades and Developments

Ethereum is a dynamic platform that undergoes regular technological developments and upgrades. Significant upgrades, such as the transition from Proof of Work (PoW) to the Proof of Stake (PoS) consensus mechanism (Ethereum 2.0), could generate positive market sentiment and drive up the price of Ethereum.

Impact of External Factors on Ether Price

Regulatory developments and changes in the legal landscape surrounding cryptocurrencies can impact Ethereum's value. Broader macroeconomic factors, including inflation, monetary policies, economic stability, and geopolitical events, can indirectly impact the ETH price.

Crypto Market Sentiment

The broader cryptocurrency market trends often influence the Ethereum price. Major market sentiment, such as a bull or bear market, can impact the value of Ether (ETH) as it is interconnected with other cryptocurrencies. News and events that affect the cryptocurrency industry as a whole can have a cascading effect on the live price of Ethereum.

Ethereum's shift from a proof of work (PoW) to a proof of stake (PoS) consensus algorithm showcases its commitment to environmentally friendly and cost-effective solutions. This significant transition has greatly improved the energy efficiency of Ethereum's blockchain, reducing energy consumption by an impressive 99.95%. By adopting PoS, Ethereum demonstrates its dedication to environmental responsibility while also enhancing accessibility and affordability for users on its dApp platform.

Furthermore, the adoption of PoS allows Ethereum developers to address the longstanding scalability issue. Through the incorporation of sharding capabilities, Ethereum's blockchain can achieve higher throughput by processing transactions in parallel, leading to reduced gas fees and improved scalability. This groundbreaking move sets a new standard for responsible blockchain operations and paves the way for a more inclusive and environmentally conscious future in the realm of decentralized applications.

While the transition to PoS consensus may have a limited effect on gas fees, Ethereum's roadmap includes crucial upgrades that tackle network congestion. By introducing sharding, Ethereum will enhance scalability, reduce congestion, and pave the way for lower transaction fees in the future. As Ethereum continues to evolve and optimize its infrastructure, users can look forward to a more efficient and cost-effective blockchain experience.

Although the PoS transition has undoubtedly made the Ethereum network significantly more efficient in energy consumption, experts caution that it won't immediately impact gas fees. However, this critical network upgrade lays the foundation for overall efficiency improvements within the Ethereum blockchain.

As part of the Ethereum 2.0 roadmap, the Ethereum Foundation will address the long-standing network congestion issue through sharding. Sharding enables parallel processing of transactions, thereby reducing network congestion and decreasing transaction fees.

Are you wondering how to stake Ethereum (ETH) and unlock a lucrative source of passive income while contributing to the enhanced security of the Ethereum blockchain? By becoming a validator, you can store data, process transactions, and add new blocks to the network, all while earning block rewards. Let's explore the process of staking ETH:

Become a Validator on the Ethereum Network

To become a full validator, you need to stake 32 ETH, which grants you the authority to perform crucial tasks such as processing transactions and adding new blocks. In return for your contributions, you earn block rewards, making ETH staking an attractive opportunity.

Participate in Staking Through Platforms Like BYDFi Earn

If staking 32 ETH seems daunting, don't worry. You can still participate in Ethereum 2.0 staking and earn rewards by staking less than 32 ETH in a staking pool. Staking pools allow you to combine your resources with other participants, increasing your chances of earning rewards and reducing the barrier to entry, all while generating liquidity.

Are you ready to stake ETH conveniently and safely? Head to BYDFi Earn, where you can view our latest offerings and APRs. Subscribe to the program of your choice, put your Ether tokens to work, and start earning passive income.