Second, only to Bitcoin in terms of market cap, Ethereum is among the biggest names and the most prominent players in the cryptocurrency markets. Many hail Ethereum to be a platform which may eventually overtake Bitcoin some day. Ethereum’s scaling solutions, effective mining options, as well as their smart contracts and dapps have charmed the markets! Let us take a closer look at the cryptocurrency and discover some Ethereum facts that even long-term investors may be unaware about!
The History Behind Ethereum’s Name
Ethereum has had a long and interesting history. Over the years, the technology that powers the platform has developed massively and now gives a tough fight to Bitcoins! Ethereum has had many interesting incidents over the years – but something that people rarely talk about is how the Ethereum name came about.
While Vitalik Buterin, the creator of this tech claims that he got the idea from researching about science-fiction elements and reading a list of sci-fi elements, it is possible that his passion towards playing World of Warcraft influenced his decision. Ethereum, in the world of warcraft games, are a race of ethereal beings.
Per Vitalik, however, the word ‘Ether’ really attracted him. Ether is a medium that allows light to permeate all space and transmit transverse waves. Basically, Buterin liked that the word Ether was a part of Ethereum in World of Warcraft – and then he saw it in this list of words again – leading up to finalizing the name ‘Ethereum’.
There is No Upper Cap of Currencies in Circulation!
Unlike many other cryptocurrencies such as Bitcoin, which have a fixed market cap (There can never be more than 21 Million Bitcoins), Ethereum has no upper market cap but only 18 Million Ether tokens can be generated every year. This is 25% of the initial supply. However, as Ether switches from a Proof-of-Work protocol to a Proof-of-Stake protocol (once the Casper protocol comes to effect), things are bound to change.
As of now developers and management at Ethereum are still discussing about a new upper cap once this Casper protocol comes into effect. However, while it is uncertain about how many Ether tokens would form the upper cap, it is certain that the number would be lesser (Much lesser, as per the Ethereum organization) than the existing 18 Million in circulation per year.
77% of all ICOs Now Take Place on Ethereum’s Platform
When ICOs started off, most of them were Bitcoin based. Basically, ICOs raise funds using cryptocurrencies. These funds are used for further developing the projects that the developers are working on. Bitcoin based ICOs were the norm in the early days, but over the past couple of years, Ethereum based ICOs are taking over. In fact, they now account for over 3/4th of all ICOs that take place! As per reports from ICOwatchlist, over 77% of ICOs are now Ethereum-based.
Ethereum is also improving upon the very concept of ICOs, as the organization has recently introduced DAICOs – decentralized and autonomous ICOs which ensure that ICO frauds do not take place. DAICOs bring in a feature called ‘tap’ where investors can release funds in parts to the developers, as per their needs. With innovations such as these, it appears that Ethereum would be the standard for ICOs in the days to follow.
The Casper Algorithm Will Change Ethereum Mining Forever!
The Casper algorithm is one of the most interesting developments taking place in the world of Ethereum technology these days. Those observing the markets closely are bound to have heard this name time and again. The Casper algorithm is all set to change the way Ethereum mining works! The Casper algorithm is basically a mix of Proof-of-Work and Proof-of-Stake systems, which ensures efficient mining at reduced costs.
Casper is currently in it’s testing phase. The day the Casper testnet was launched was marked by a significant spike in ETH prices as the markets surged to an all-time high. Casper is all set to go live in Summer 2018. Mining for Ethereum is a profitable venture and many investors have been setting up Ethereum mining rigs.
Moreover, unlike some other cryptocurrencies, mining for which may not be as profitable over the next few years, Ethereum Mining continues to be an exciting prospect. Tools such as the Ethereum Mining Calculator help predict the amount of profit that one can make if they start mining today! With the Casper protocol coming soon, things are all set to get even better for Ethereum miners!e
‘Ethereum’ is Not a Cryptocurrency!
Finally, Ethereum is not a cryptocurrency! Ethereum is platform and Ether tokens are the cryptocurrency of this platform. Talking purely from the point of view of a currency (something which is used to buy or sell stuff), Bitcoin is a currency – which can be used to buy goods or services. However, Ethereum is platform for developers to build apps upon. The Ether tokens are means of payment that can be used in those apps!
However, considering that both these tokens carry monetary value, this confusion is common. Both tokens are good investment opportunities, but both serve different purposes. While they are the #1 and #2 ranked cryptocurrencies respectively, they both serve different purposes when it comes to their actual use-case.s