How to Keep Up With Ethereum

When many think of blockchain technology or cryptocurrency, the name that immediately comes to mind is Bitcoin. And it’s easy to see why: Bitcoin is the largest and most successful form of cryptocurrency. However, while Bitcoin is immensely successful, another form of cryptocurrency has steadily been rising in value over the past several years: Ethereum.

How to Keep Up: The Exchange Rate of ETH to USD

The current ETH to USD exchange rate​ as of July 25, 2024, is that​ one ETH is equivalent to $3,431.24 USD. The current value of Ethereum has been down 1.29% against the exchange rate of USD in the last 24 hours. ​

If you’re interested in comparing the exchange rate of other cryptocurrencies and fiat currencies, a good place to start is by checking the current BTC to GBP exchange rate.

How Ethereum Got It’s Start

Vitalik Buterin co-founded Ethereum. In 2014, Buterin and his co-founders launched a crowdsourcing campaign that sold donators Ether (Ethereum tokens) to raise enough funds and awareness about the product to make their vision a reality. In the process, they ultimately raised more than $18 million. The first genuinely official release of Ethereum proper, then known as Frontier, was launched in 2015.

While Ethereum’s growth has been anything but stable or incidental, it has shown a remarkable capability for growth. While its value fluctuations may occasionally be quite extreme, the value of Ethereum currency grew more than 13,000% in 2017 alone.

How Ethereum Works

Ethereum is a form of cryptocurrency that acts as an open-source public service. Ethereum utilizes blockchain technology to allow for secure trading without the involvement of third-party oversight. Ethereum is available in two forms: externally owned accounts (controlled by private keys influenced by human users) and contract accounts. Ethereum is also specifically designed with data allocated for developers to deploy multiple forms of decentralized apps. The programming language of Ethereum and its introduction of self-executing smart contracts allow for more complex tasks and activities to be performed. In many ways, this specified innovation turns blockchains from simple distributed ledgers into powerful, global virtual computers in their own right. While Bitcoin remains the most popular cryptocurrency, Ethereum’s expeditious growth and wildness have overtaken the industry.

Ethereum’s Speed is Unparalleled

Ethereum’s average block time is also substantially less than Bitcoin’s. Ethereum takes 12 seconds, while Bitcoin takes 10 minutes. This translates into more block confirmations, which allows Ethereum’s miners to complete more blocks and receive more Ether than Bitcoin users can in the same amount of time.

How Ethereum and Bitcoin Differ

While Ethereum and Bitcoin are both forms of cryptocurrency, there are some substantial differences. Bitcoin trades in cryptocurrency, while Ethereum has several different trading options, including cryptocurrency, smart contracts, and the Ethereum Virtual Machine. These different trading options are all based on different security protocols, which keep the trading safe and secure. Where Bitcoin utilizes a “proof of work” system, Ethereum uses a “proof of stake.” Bitcoin allows only permissionless transactions; Ethereum allows both permissioned and permissionless transactions.

In short, while Ethereum may not have the brand ubiquity or cultural prominence of Bitcoin, it is still a more than worthwhile cryptocurrency that many investors are observing closely as its value continues to evolve.