Ethereum is a blockchain on which it is located its cryptocurrency Ether or ETH what has surpassed one trillion dollars in annual operations. But, it is a digital platform that has many other applications in various areas such as ERC-20 tokens, NFTs or non-fungible tokens for uses multiple in art, sports, ticket sales smart contracts and a long etcetera.
Likewise, serves as a database in any field that requires information storage. Of course, its leading role is played in decentralized digital finance for payment of online goods and services and as a form of investment by acquiring ETH and diversifying portfolios.
This network It was created in 2015 by programmer Vitalik Buterin, who designed Ethereum as a tool for developing decentralized applications. These programs enable collaborative transactions that allow you to execute smart contracts, Among other functions.
Although the Bitcoin blockchain and its cryptocurrency BTC were the pioneers, Ethereum and its asset ETH have taken over the well-deserved second place in the world of cryptography.. But, like any digital asset, the value of ETH, like that of BTC, Litecoin, XRP, SOL, ADA, AVAX, and the rest of the more than 25.000 existing cryptocurrencies, has experienced rises and falls within the DeFi markets.
What cannot be denied is the significant growth of Ethereum in its existence on the market. In January 2016, shortly after its launch, its price was around one dollar. On December 16, 2024, ETH reached its all-time high with a fluctuating price of around $4890 per unit.
BUY BITCOINETH value and market capitalization
The Ethereum price for the second week of March 2025 is between 1899 and 1900 dollars per unit, trailing behind BTC with a value between $80.000 and $81000. Although the difference between the two is significant, these two assets capitalize the crypto market by almost 57,8%.
By the end of 2024, 400 million people own cryptocurrencies in digital wallets. Of these, just over 141 million of people have Bitcoin and 90,5 million They own ETH.
Bitcoin vs. Ethereum
Bitcoin, which was launched in January 2009, will go down in history as the first digital asset to appear. It's important to note that it was born in the context of an economic crisis caused by the collapse of several markets, including the real estate market, in 2008.
It was conceived as a decentralized digital currency It is not under the control of any central bank of any state. That is, it operates independently of any central authority for transactions on the blockchain and for paying for or collecting payments for goods and services.
BUY ETHEREUMWe'll see it described as "digital gold" because it limits token availability. Its primary purpose is act as a store of value and as a medium of exchange. It is used to conduct transactions without the intervention of a central entity such as a nation's central bank, the U.S. Federal Reserve, or the European Central Bank (ECB). Transactions involving Bitcoin are primarily economic in nature.
Regarding the process of manage, store, and verify transactions, the Bitcoin blockchain employs a consensus algorithm known as Proof of Work or PoW as a consensus mechanism.
On the other hand, the Ethereum blockchain It serves much more than just the basis of a digital asset. This is a DeFi platform designed to host its native token, ETH, but also for the development and execution of smart contracts and dApps. Furthermore, its consensus mechanism is the Proof of Stake or PoS that have technical innovations compared to PoW and the most important of these is that it requires much less energy to mine cryptocurrencies, which is why it is considered a greener network.
What makes the Ethereum blockchain valuable in the face of future challenges?
The Ethereum blockchain gains much more value thanks to several key features that we'll explore below. Additionally, this blockchain has managed to attract a broad user base already an active community of developers and enthusiasts which not only boost the network, but also strengthen the price of its native cryptocurrency.
Ethereum's strong public network
Ethereum runs on technology based on the decentralized blockchainThis is true for all cryptocurrency networks. It is also distributed throughout a global network of nodes or computers or terminals and does not depend on a central authority.
What makes it robust and safe It's the consensus protocol. This is achieved through the proof-of-stake mechanism and, in technical terms, makes it resilient to centralized failures and attacks such as hacking or manipulation. Ultimately, its decentralized structure guarantees neutrality and resistance.
BUY USDT HEREDynamic supply
The supply of Ethereum's native token (ETH) adapts dynamically and is not limited or fixed, Which is a big difference compared to BTC. This adjustment depends on the market in terms of demand and security requirements. Two main factors influence the supply of Ether: the number of newly issued tokens and the volume burned.
If demand increases, more tokens are issued, and if it decreases, the issuance of ETH is reduced. On the other hand, when burning occurs, it is done through the base commission for each transaction on the network. Conversely, when blockchain activity increases, this base fee also increases.
Thus, The supply of ETH can be inflationary or deflationary depending on increased demand or burning. Since the update known as "The Merge" in September 2022, the supply of ETH has shown a tendency to decrease, which has increased its market value.
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General purpose technology
The ability that the Ethereum blockchain offers to smart contracts It allows for a wide range of applications within the financial field, but also outside of it. As They do not depend on a centralized entity, These cryptographic documents are automatically verified and executed according to the terms of the agreement. Therefore, once implemented, they cannot be altered. In short, Ethereum offers numerous opportunities for Innovation and collaboration in everything related to flow, storage and systematization of information as a cloud database.
