Ethereum (ETH) is a decentralised blockchain platform that enables developers to create decentralised applications and smart contracts. As of April 2023, it is one of the most widely used blockchain systems, with a market value of more than $200 billion USD.
Like Bitcoin, Ethereum is a distributed network that uses cryptography to secure transactions and maintain the integrity of the blockchain. However, it differs from Bitcoin in that Ethereum utilises a different security model, does not use proof of work in an attempt to be more versatile and can be used as a platform for building decentralised applications.
Ethereum offers the capability to produce ERC-20 tokens, which are digital assets that can symbolise various items, including a company's stocks or digital collectibles, and can be traded on cryptocurrency exchanges. The worth of these tokens is determined by supply, demand, and their respective tokenomics.
The price of Ethereum is subject to market fluctuations, and can be affected by various factors such as market sentiment, technological developments, and regulatory changes. In early 2022, ETH hit an all-time high of over $4,000 USD, but by mid-2022, the price had dropped to around $1,200 USD. Since then, the price has been on an upward trend and as of May 2023, ETH is trading at around $1,800 USD.
Ethereum has a robust community, with 224 million exclusive wallets holding ETH, indicating a high level of adoption and a sizable and active developer group continually improving the technology and developing new applications.
If you are interested in learning more about Ethereum, there are many resources available online at Binance Academy. Additionally, you can trade or buy ETH on Binance, which offers a user-friendly interface and low fees.
Binance is a global cryptocurrency exchange and has a significant presence in New Zealand, with Binance New Zealand being the local subsidiary.
The exchange is among the top crypto exchanges worldwide, with a strong focus on providing secure and transparent trading services to users.
Disclaimer
This content is for general information purposes only, not investment advice. Cryptocurrencies, including Bitcoin, are volatile and fluctuate on a day-to-day basis, thus, trading requires proper diligence and sound judgement in order to evaluate the risks associated.
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