What is Etherum?
Ethereum (ETH) is a public and open-source computing platform that is based on smart contracts. It offers a decentralized virtual machine known as Ethereum Virtual Machine (EVM), which is able to manage public scripts through an international network of nodes. However, the computing platform is not something that makes ETH so popular. Rather, Ethereum today stands to be one of the leading cryptocurrencies of the world with market capitalization of over $75 billion.
These cryptocurrencies are provided in the form of a token termed as “ether” and interestingly these tokens can be transferred between the accounts to compensate for the computing work performed by the participants. Therefore, no matter how the currency works, its core is structured by two essential elements and they are Smart Contracts and Decentralized Apps (DApps).
Know the Fundamentals of Ethereum
To understand the fundamentals of ETH, you must be aware of the way it works and the various components that structure its development. The first thing that comes into play is smart contracts. Now, smart contracts can be stated as simple programs that are able to execute operations as designed by their developers. These contracts are built with an aim to deliver security by eliminating the need for any sort of third parties for payments done through ethereum wallet. Still, not sure how it works, let’s focus on an example to know more.
Say, you need to hire a professional for managing your crypto-market portfolio. For the manager, you know that you will pay her while ensuring that your investments are in safe hands, you sign an agreement and get the entire process done with a peace of mind. This might be expensive and time-consuming, as you would require someone to settle down the paperwork and other associated obligations. This process is made easy with smart contracts. You can pay the manager right at the moment when you decide to hire them and smart contracts will pay the money only when guaranteed profits are achieved.
When putting all together, ETH is able to come up with four exceptional benefits and these are:
- Secure: The programs of ethereum are secured under cryptography, as a result of which every application remains safe from fraudulent activities and malware attacks. Thus, every application exchanged or build on the platform is 100% secure and safe to use.
- Immutability: From security, another integral aspect of ETH is that there is no involvement of third parties. The data cannot be changed or manipulated by anyone, as there will be only the supplier and the consumer in the process of agreement, while payments would be through smart contracts.
- Zero Downtime: The apps that are part of the system do not switch off or neither do they go down, enabling the developers to structure the programs that they aspire to and come up with the much-needed apps and services for their clients.
- Tamper & Corruption Proof: The apps that are built become a part of network that follows the consensus principles and this makes censorship impossible.
How Are Ethers Generated?
As seen in most of the cryptocurrencies, the ethers are obtained through mining. This demands specialized and advance computers that are able to carry out complex calculations. Mining is primarily performed by established companies who are paid for their work with ethers. This means, you cannot make money by mining them from personal PC, even when they are highly configured. Then, how exactly can ethers be generated? The answer is simple: earn them. You can get ethers by offering services and goods to someone who would pay you with this virtual currency and don’t be disheartened if you cannot find such a client, as there is another option too and i.e. to purchase them from cryptocurrency marketplace.
Ethers acquired by you are always stored in the ethereum wallet with private (confidential) key. You can have them offline or in cloud, while offline turns out to be a much-secured option. The idea here is to be careful with the private key, as if you lose that then you will never be able to gain access to the ether.
Factors That Influence the Value of Ethereum
Ever since their launch in 2015, ETH has seen impressive hike with an increase of almost 300% and the ethereum price is approximately $688.5 per ether. This means if you would have bought 1000 ether right when they were introduced in $0.50 then now you would have been rewarded with $688,500 dollars and this ethereum price INR is equivalent to INR 4,40,76,255. The sharp improvement in rates, without a doubt, indicates that is can be quite a lucrative cryptocurrency to invest on, with the same value of other prominent currencies such as Bitcoin, Ripple, Bitcoin Cash, Litecoin and more.
Before you get set to make the most of cryptocurrency, don’t forget that investing in them can be risky too. It is undeniable that their price has quadrupled in a short span of time, but the trends have often stayed volatile, meaning the price might go up or down greatly in 24 hours. This is the reason why they are not are stable as the standard currencies like USD or Euro. Therefore, to make your mark in this market with ethers, you need to realize what drives ETH and its response towards various market influences.
How exactly are the values of ether determined? Just like commodity, indices and Bitcoins, it is the supply and demand that decides the real-time ethereum price in the market. If there are too many ethers floating in the market with minimal demand then the market would experience a downtrend, while if the composition of ether is less and the demand is high then an upward trend will be witnessed.
What Will Be The Future of Ethereum?
It’s challenging to analyze the future movements of ETH, and the same goes for all the cryptocurrencies available out there. However, the one fact that will remain unchanged is: the crypto marketplace is here to stay and soon that might become an inevitable part of our lives. According to experts and cryptocurrency analyzers, ethereum India is filled with potential and its chances of defeating the strongest cryptocurrency- Bitcoin is quite high. These are all speculations that come within the world of possibilities.
Don’t stop monitoring the ethereum price INR and invest immediately when you think that you have struck an amazing deal. The more you strategize the entire process of investment; the rewarding will be the results. But, just like stocks, forex currency trading and commodities one can never be sure about how the price would move!