Ethereum : what it is, how it works and what is the price of ETH

Ethereum price in us dollar

You can know the price of Ethereum in Argentina watching our graphic.

What is Ethereum (ETH)?

When we talk about Ethereum is an open source platform based on the Blockchain model. It is decentralized and allows anyone to create Intelligent contracts and applications in a few lines of code. Ethereum It also works as a platform for many other cryptomones. Besides If a protocol, Ethereum also provides its own cryptomon, known like eth.

Vitalik Buterin, the Ethereum Creator

Unlike Bitcoin, Ethereum's creator has a known identity. It's about Vitalik Buterin, a young programmer and writer born in Russia and Bred in Canada. Since he was little he was cataloged as a child prodigy for his Incredible skill with mathematics. In 2013 and with only 19 years He began to develop the platform. Buterin was already quite involved With the Bitcoin world before the launch of the network, knowing this Cryptomoned thanks to his father, also programmer.

The initial purpose of Ethereum is very linked to a personal experience ofyour Creator. Buterin used to play the World of Warcraft (Wow), a videogameMassive multiplayer role online, until 2010 Blizzard Entertainment, thecreator company of the game, eliminated a feature of the game that made it Theyoung Russian stopped playing. It was at that time that Vitalik became awareof Of the consequences that the centralized systems bring.

What is Ether and what is it for?

Ether (ETH) is the Ethereum cryptomon. Is the engine that drives thisdistributed application platform and is used by customers for Make payments toother people or machines that execute operations requested. It would be theincentive for which developers They perform quality applications and causesthe network to stay healthy.

In principle, the first utilities that appear on the list are similar to thoseof other protocols: because it is decentralized, its main Advantage is that itis a transparent platform, ie hackerproof. Also that it is an open sourcesystem, the absence of intermediaries, a fact that allows you to be 100% ownerof your money, are not Controlled by any central government and areunfalmable.

However, Ethereum also has benefits that other cryptomoneds do not have. Adistinctive aspect in its usefulness is the creation of intelligent contracts.These, when integrated into the platform, eliminate the need to requireexternal software. Ethereum also serves to execute faster operations, sincethe time of the Ether transaction is really faster than that of othertechnologies. Finally, it can be used to create financial applications, safelyand transparency, it also offers online cryptographic security to handleproperties and contracts.

Characteristics of this virtual coin

ETH es una criptomoneda que, como hemos visto, cuenta con características quela hacen única y distinta a BTC. Hagamos un repaso por estas característicaspara conocer más a fondo a la segunda criptomoneda más importante del mercado.

Ethereum mining

The consensus protocol used is the work test or Proof of Work (Pow), whichuses, for example, Bitcoin. The algorithm used is known as ETHASH, a verydemanding algorithm, which requires intense memory use. This allows miningthrough GPU, graphic processing units.

La red busca evitar la minería con ASIC, componentes mucho más potentes, paraasí poder evitar una cierta centralización.

Emission

The emission of ETH, unlike BTC, is not limited to a maximum number of tokensthat may exist, but is infinite. However, the annual issuance is controlledand limited to 18,000,000 tokens. Its broadcast has a particularity: when amining solves a block, it receives ETH as a reward, but it can happen thatanother miner also obtains a solution to that block and at that time, so itwill also receive a reward.

It is worth mentioning that this network is constantly updated, seeking toimprove its performance and be increasingly scalable. One of the greatestchanges will be seen with the arrival of Ethereum 2.0, a new Blockchain of thePlatform that will abandon the POW Consensus Protocol to adopt the ProtocolProof of Stake or Test of Participation (POS), which will not need the Miningand that requires less energy to function.

Cost measured in gas units

Gas is the measure that is used to be able to measure the work done within theblock chain. It is used to measure the cost of performing an action within thenetwork, it is the price to pay for operations in Ethereum. This cost pershare prevents Blockchain from stopping and weakens its security, so it alsofunctions as a species of shield so that attacks on the network can not becarried out.

In addition, the gas serves as a reward to the miners by the use of itsequipment, which allow the actions in the Blockchain to be carried out.

Size and block generation time

The size of the Ethereum blocks is dynamic, that is, it will depend on afactor and it is likely to be modified. This factor is a specific amount ofgas, that is, the blocks can contain a larger or less transaction amount aslong as they do not exceed the established gas limit.

As for the block generation time, we have to say that it is also variable. Atthe time of its launch in 2015, time was 16 seconds, standing at a lower timetoday. If we take into account that in the Bitcoin block chain a block isgenerated every 10 minutes, we can consider the Ethereum network as a goodoption when making payments as it confirms transactions faster.

Smart Contracts

A contract is an agreement between two or more parts, an environment wherewhat can be done is defined, how can it be done and what happens if somethingis not done. That is, game rules that allow all parties to understand what theinteraction they will have. Contracts are subject to territorial laws andjurisdictions, and sometimes require notaries. This translates into costs,time and third parties that intervene in the process. And for more rigorousthat it is written, many times their content may be exposed to the judge'sinterpretation that reached the case analyzes it.

In contrast, an intelligent contract or SMART contract is an agreement betweenparties capable of executing and fulfilling by itself, autonomously andautomatically, without intermediaries or mediators. How? Translating the termsof contract to “scripts” (computer codes) written with programming languagescontaining the statements and commands that must be executed before complianceor not the contract. In the Ethereum network, Smart Contract enablestransactions through the network, without control of any user. These areimplemented in the network and its execution depends on its programming.

How does the Ethereum work?

ETH miners are responsible for verifying transactions to form blocks byresolving complex algorithms. As we said, the block generation time isvariable, so it will also be variable the difficulty of these algorithms to beable to maintain an average processing time. Graphic processing units (GPU)are used to carry out this task and, as a reward for their work, minersreceive a certain amount of ETH.

Como sucede con las demás criptomonedas, estas transacciones están registradasen la blockchain, que es de público acceso.

How does the price of the Ethereum vary?

As with almost all cryptomones, the price of ETH usually varies from onemoment to another. Each crypt is a particular case, so we are going to reviewsome of the aspects that will define how much an Ethereum is worth.

Availability

The emission of ETH is infinite, although it is limited annually. Throughoutthis year, they are created, they lose, they send, receive and withdraw Ethconstantly, so the availability of these tokens is not always the same.

Regulation

It has not been a decade since the creation of Ethereum, so it is a very newnetwork. With the advance of time and the increase of users, it is likely thatgovernments around the world will begin to think about regulations that couldaffect their price.

Reputation

The media, at first, strongly rejected cryptomoneds. Being a novel technology,the information that was had about them was practically null. At present, thereputation of the cryptomoneds changed radically: of working to wash money andfinance terrorism to be a financial revolution to which a lot of attentionmust be paid. The power of the media affects, to a greater or lesser extent,to the reputation of cryptomones and their vision by people.

Technological advances

The true potential of Blockchain technology is still to be discovered. Itsuses, so far, focus mainly on economic transactions and we do not know what itcomes to future, but the huge range of possibilities in their uses can attractattention over them and increase their value.

Advantages and disadvantages of ETH

This new form of value transmission has many benefits for the users. Is a verydisruptive technology and that will surely involve a Change in the financialsystem as we know it now. While SUS. advantages are widely greater than thedisadvantages, it is not bad to make a Review by both.

Advantages of ETH

• Safety:The ETH should be stored in Wallets, which have proven to be very safe to do so.

• Intelligent contracts:This Blockchain allows you to perform Agreements between two or more parts that are executed automatically.

• Decentralization:ETH is not controlled by no central organism, so its value depends on the offer and the demand.

Disadvantages of ETH

• Volatility:is a very new coin and its value is very variable.
• Is infinite:While it has an annual limit of emission, not There is a stop for the creation of these tokens.

Historical Ethereum Quote: ETH Price Statistics

Ether is a very new coin and with a market still in growth, which It takes usto see great variations at its price. As we saw earlier, the offer and demandwill be the one that determines how much an Ethereum is worth, although Thereare other factors typical of the network.

Due to the benefits offered by this technology, we can observe a Spectaculargrowth in its value: Each ETH was worth $ 0.31 on its offer initial tokens andthat value was growing until reaching the maximum of $ 4,891 In November 2021,only six years after its launch.

Forecast and predictions of the Ethereum

As we have seen, the growth of Ethereum has been incredible and allows Thinkthat it will continue to grow in the future. The various possibilities thatoffers this network, added to the Ethereum 2.0 update, allow you to do Aprojection rather than positive for Ethereum and its Token. In addition, speedIn confirmation of transactions it can lead to be adopted as means of paymentin the not so far away.

Ethereum Argentina - Frequently Asked Questions

What supports the Ethereum?

The network is supported thanks to the miners, which confirm the transactionsof network. For his work, they receive a payment in ETH.

Who controls Ethereum?

While we know its creator, Vitalik Buterin, this is a network Decentralized.This means that nobody controls it nor does it Intervene.

How many tokens does Ethereum have?

Ethereum has its native token named Eth. Currently, they have been issuedAround 120,000,000 tokens.

What network is used to transfer Ethereum?

The network used to transfer ETH is the Ethereum network itself.

What is the difference between Ethereum and Bitcoin?

The main difference is the reason for its creation: Bitcoin was created asdecentralized means of payment, while Ethereum is a platform Decentralizedthat allows you to execute intelligent contracts.

How much does an Ethereum come out in Argentina?

You can enter our platform to know the value of ETH in Argentina, as well asthat of many other cryptomones.