Ethereum: What investors need to know about this crypto vehicle

Ethereum has been a force in the cryptocurrency industry. In today's blog entry, Robert Testagrossa looks at some of the facts about Ethereum that every potential investor should know.

The name Ethereum comes from the root word "ether," which is the element that fuels the platform. Ether, abbreviated as ETH, acts like fuel or a tool to ensure all computations are done correctly when running Ethereum's smart contracts. The development of this language by Dr. Gavin Wood back in 2013 caused an uproar in the cryptocurrency industry. That's when Vitalik Buterin, a former colleague of Wood, teamed up with Wood and Jeffrey Wilcke in 2014 to cofound the Ethereum project.

Ethereum is a blockchain technology built to work on a specific type of software known as Dapps - decentralized applications. This technology enables developers to build apps across various industries that are completely secure and reliable. For example, several banks are considering developing cross-border payment applications based on blockchain technology, which Ethereum provides.

The Ethereum network runs on Ether tokens, an open-source cryptocurrency. Ether was developed to give users access to the computing power of the Ethereum blockchain, which is what allows users to write smart contracts and use Dapps. Ether can also be traded for fiat currency like dollars and euros. The price of Ether has been quite volatile compared to other cryptocurrencies such as bitcoins because it exists purely on speculative value.

Ether tokens are capped at 18 million per year, after which no more will be mined, Robert Testagrossa explains.

Unlike the bitcoin network, which is designed to handle only seven transactions per second, the Ethereum network can currently process 20 transactions per second. This alone makes it a very attractive cryptocurrency for investors because transactions are quick and almost free.

Based in New York City, serial entrepreneur Robert Testagrossa is all about building businesses, software development, cryptocurrency, retail, and the luxury hospitality industry. For similar blogs, check out this link.