Ethereum ETH
About Ethereum:
Ethereum is a decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (DApps). As one of the leading cryptocurrencies, Ethereum offers a robust infrastructure for creating and executing programmable agreements without the need for intermediaries.
At its core, Ethereum operates on a global network of computers, forming a decentralized and secure ecosystem. Its native cryptocurrency, Ether (ETH), fuels the platform and serves as a means of value exchange within the network.
What sets Ethereum apart is its ability to support smart contracts. These are self-executing contracts with predefined rules and conditions encoded directly into the blockchain. Smart contracts enable automation and facilitate secure interactions between parties without relying on intermediaries, enhancing efficiency and reducing costs.
Ethereum’s flexibility allows developers to create a wide range of decentralized applications, spanning various industries such as finance, gaming, supply chain, and more. These DApps leverage the Ethereum blockchain’s features, including immutability, transparency, and censorship resistance.
Ethereum has undergone significant upgrades, with the most notable being Ethereum 2.0. This upgrade aims to enhance scalability, security, and sustainability by transitioning to a proof-of-stake consensus mechanism.
By empowering developers to build decentralized applications and execute smart contracts, Ethereum revolutionizes traditional industries and opens up new possibilities for innovation in the world of blockchain technology.
Inflation, Vesting and Distribution of Ethereum ETH
Ethereum’s token distribution took place during its Initial Coin Offering (ICO) in the summer of 2014. The purpose of this ICO was to fund the development of the Ethereum platform.
Here’s a general overview of Ethereum’s ICO and the distribution of Ether (ETH):
Ethereum’s ICO: Ethereum’s ICO was one of the earliest and most successful examples of this type of fundraising event in the cryptocurrency space. The ICO lasted 42 days, from July 20 to September 2, 2014. During this time, participants could purchase ETH in exchange for Bitcoin (BTC).
Distribution of Ether: In total, 60 million Ether tokens were sold to ICO participants, 12 million Ether were created to the Development Fund, most of it going to early contributors and developers and the remaining to the Ethereum Foundation.
- Public Sale: A total of 60 million ETH was sold to the public during the ICO.
- Ethereum Foundation: Approximately 12 million ETH (or 20% of the total supply during the ICO) was allocated to the Ethereum Foundation, which is a non-profit organization that supports the development of the Ethereum platform. This allocation also included rewards for early contributors and developers.
Vesting Schedule: Ethereum’s ICO is not known to have included a traditional vesting schedule. A vesting schedule is a system used by companies to ensure that tokens or shares are released to individuals (such as employees or investors) over time, rather than all at once, to incentivize long-term involvement and commitment.
Inflation and Mining: Originally, Ethereum operated on a Proof of Work (PoW) system, where miners validated transactions on the Ethereum blockchain and were rewarded with new ETH for their work. This created a steady rate of inflation, which decreased over time due to a declining block reward.
Transition to Proof of Stake: Ethereum transitioned from the Proof of Work (PoW) consensus mechanism to Proof of Stake (PoS) as part of its Ethereum 2.0 upgrade, also known as Serenity. PoS differs from PoW in that validators are chosen to create a new block based on their amount of staked ETH and other factors, rather than by solving computational problems. The transition to PoS aims to address issues with scalability and energy consumption in the Ethereum network.