• Saad Atique

What Is Ethereum?

Updated: Sep 8

Ethereum is a popular blockchain platform having its dedicated digital currency known as Ether (ETH) and programming language known as Solidity.


Like other blockchain networks, Ethereum is also a decentralized public ledger that verifies and records transactions. Users on the network can create, publish, monetize, and use applications, and for payments, they can use Ethereum’s Ether.


Ethereum has the second-highest market value after Bitcoin as of Jul 2021.


A physical representation of Ether on top of a motherboard
What is Ethereum?

Understanding Ethereum


Ethereum was designed to enable developers to create and publish smart contracts and dApps without annoying downtime whilst avoiding interference from any external source or third party.


Furthermore, Ethereum defines itself as "the world's programmable blockchain." It is a bit different from Bitcoin as it is a programmable network that most people use as a marketplace for financial services, apps, and games.


Payments of the services used on the Ethereum blockchain are made in Ether cryptocurrency.


The network is encrypted and safe from fraud, burglary, and censorship.


Ethereum's Founders


Ethereum was initially launched by a team of blockchain enthusiasts in 2015.


The team included Joe Lubin, creator of ConsenSys, and an expert blockchain developer. Another co-founder of Ethereum was Vitalik Buterin, currently serving as its CEO and company’s face.


Buterin is the world's youngest crypto billionaire. Keep in mind that he was born in 1994.


The Ether was designed to be used inside Ethereum’s network initially.


However, like other digital currencies, Ether has become popular, and many merchants and service providers accept it as a form of payment.


Some famous names that accept Ether are Overstock, Shopify, and CheapAir.


The Ethereum Business


Ethereum's biggest competitors are Bitcoin, Blockstream, JP Morgan, Ripple, IBM, IOTA, Microsoft, Solana, Avalanche, Cardano, Neo and Tezos, to name a few.


Ether, the associated currency of the Ethereum blockchain, is very volatile, but has remained second only to bitcoin in terms of market capitalization since just after its launch.


According to a report published by Analytics Insight, Ethereum’s market cap is around $500 billion compared to $1.080 trillion of Bitcoin.


Ethereum's Continuing Evolution and Rise


The creators of Ethereum were among the first few to use blockchain technology for secure trading of virtual currency.


Its ETH cryptocurrency was created as a mode of payment for apps built by the group within the platform.


Furthermore, its invulnerability to internet hackers and other snoopers has opened up new opportunities to store private and confidential data from personal healthcare records to voting systems.


Ethereum brings new opportunities also for developers and programmers to build and market games and financial applications.


What Is ETH Trading?

Investors and traders can use almost all cryptocurrency trading platforms to buy and sell Ether.


You can trade in this currency on Coinbase, Bitstamp, Gemini, Kraken, Binance, and Bitfinex. Plus, there are various crypto investing apps such as Robinhood and Gemini that you can use for Ethereum trading.


As mentioned above, the crypto market is extremely volatile, and the market value of one ETH was between $1,700 and $2300 as of July 2021. In May 2021, ETH was over $4,000, but a year ago, Ethereum was around $231.


Does Utopia Digital Asset Management's DeFi Infrastructure Fund invest in Ether?


Yes. Ethereum has, so far, been the main layer1 platform solution for those building DeFI dApps.


As such, Ether has been the second largest constituent of our fund due to it being the firm foundation on which the DeFI economy is built.


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