Ethereum is a decentralized, open-source blockchain platform featuring its own cryptocurrency, Ether (ETH). Ethereum is a platform for running smart contracts and building a variety of decentralized applications (dApps), and was first proposed by Vitalik Buterin in 2013 and officially launched on July 30, 2015.
Ethereum Key features
1. Smart Contracts: With smart contracts, Ethereum can automatically execute contracts without the need for a centralized authority. Smart contracts run on the blockchain and work as programmed without interruption, censorship, fraud, or third-party interference.
2. Decentralized Applications (dApps): Ethereum provides a platform for developing a wide variety of decentralized applications. These can be utilized in various fields such as finance, gaming, social networks, etc.
3. Ethereum Virtual Machine (EVM): The EVM is an environment that runs smart contracts on the Ethereum blockchain and is Turing-complete, meaning it can perform complex computations.
4. Consensus mechanism: Ethereum switched from Proof of Work (PoW) to Proof of Stake (PoS) on September 15, 2022, to reduce energy consumption and increase the efficiency of the network.
History and major updates
1. Initial development and launch: Vitalik Buterin published a whitepaper in 2013, raised funds through a crowdsale in the summer of 2014, and officially launched Ethereum on July 30, 2015.
2. Major hard forks: Ethereum has undergone several network updates, including "Constantinople" and "Istanbul" in 2019, "Berlin" and "London" in 2021, and "Denkun" in 2024.
3. Ethereum Classic: In 2016, following the The DAO hack, the community split into Ethereum Classic (ETC), which maintained the existing blockchain, and Ethereum (ETH), which switched to the new blockchain.
Ethereum's Goals
Ethereum's ultimate goal is to become a global platform for decentralized applications that allows users around the world to write and run software that is resistant to censorship, downtime, and fraud[1][4]. In doing so, it hopes to provide innovative solutions across a wide range of industries and unlock the full potential of blockchain technology.
Ethereum is currently the second largest cryptocurrency after Bitcoin and continues to grow.
Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) has given final approval to an Ethereum spot exchange traded fund (ETF), significantly expanding access to Ethereum. This is expected to boost the price of Ethereum in the virtual asset market.
Key takeaways.
· Background: The SEC has approved applications from asset managers such as BlackRock to trade ethereum spot ETFs, with at least two products set to begin trading on July 23rd.
· Price Outlook: Experts believe that Ethereum's price could rise to as high as $6,500.
· Market Impact: This approval comes six months after the approval of the Bitcoin ETF and is expected to have a positive impact on the cryptocurrency market. Bitcoin has seen significant price gains in the past following the approval of Bitcoin ETFs, and Ethereum is expected to follow suit.
· Inflows: Research firm Steno Research estimates that the Ethereum spot ETF could attract $15 billion to $20 billion in its first year.
· Rising expectations: Since the SEC directed major exchanges to revise their applications to list spot ETH ETFs in May, optimism for approval has grown.
The approval of a spot ETH ETF is expected to further boost the crypto market and increase the likelihood of ETH's price appreciation.