ETH Token

Ethereum is a rising star in the cryptocurrency realm. If Bitcoin is king of cryptocurrency, Ethereum is the queen. Since it’s launch in 2015, Ethereum has quickly taken the #2 spot as the second largest digital currency. In this post, we will be going over what makes Ethereum worthy enough to challenge the #1 spot. For more about what is ETH Token, Ether & Ethereum dive into the knowledge ocean provided by iCE3X.

A decentralized blockchain app platform.

Launched in 2015, Ethereum was created by Vitalik Buterin and a global team of developers making up the Ethereum foundation, a Swiss non-profit organization. In a nutshell, Ethereum is a decentralized platform that runs smart contracts and Distributed Autonomous Applications (dApps).
Ethereum also shares several similarities with bitcoin, one being the fact that both are public peer-to-peer networks with a digital token. In this case, Ethereum’s digital token is Ether (ETH) or ETH Token.

What are smart contracts? 

In a nutshell, smart contracts are applications that run in regards to how the user decides to program them. These applications run on the blockchain, and are users can program them without any need for a middleman, and without the risk of any downtime or censorship.

One of the many features that come with Ethereum apps is the ability to move funds around. Users are able to develop their own markets and store debt registries. Ethereum’s blockchain can store data for use by computer programs running on the blockchain. These applications are ‘decentralized apps’ (dApps).

Ethereum users who want to develop their own dApps have the ability to build:

  • Tradable tokens with a fixed supply cap, paired with a central bank with the ability to issue funds as well as a puzzle-based cryptocurrency.
  • A crowd-fund to involve people in a product before it’s initial release.
  • A crowd-sale for virtual shares on a blockchain organization, as well as an auction of a certain number of items
  • A virtual organization to vote on issues on the Ethereum network/blockchain
  • Transparent associations for shareholder voting.
  • Create your own country with an unchangeable constitution and improved delegations for democracy.

For an engine such as Ethereum to run smoothly, it’s going to need fuel. As a result, ETH Token is the fuel for all operations on the Ethereum blockchain

The thing that I often ask startups on top of Ethereum is, ‘Can you please tell me why using the Ethereum blockchain is better than using Excel?’ And if they can come up with a good answer, that’s when you know you’ve got something really interesting. – Vitalik Buterin

ETH Token or Ether Tokens (ETH) 

Ether or ETH, is the digital token users use to pay for computational resources for applications running on the Ethereum network. In other words, ETH is the digital payment made to the system that executes each operation. As a result, users get ETH token rewards for offering their resources.

A common interest amongst the cryptocurrency community and on the crypto forums is the supply of tokens. All cryptocurrencies on the market have a differing supply of coins, and while the ETH token cap may be high, it is not infinite. The total supply, as well as the issuance rate, was reliant upon the donations for the platform’s prescale occurring in 2014. During this presale, the developers came to the conclusion that the issuance cap of ETH token would be 25% of the initial supply per year. As a result, the relative inflation drops each year.

The supply stats of Ether (ETH) are:

  • The Ethereum presale contributors managed to generate 60 million ETH tokens.
  • From this 60 million, 12 million tokens went toward the development fund.
  • It takes 15 seconds to add a miners block to the chain, generating 5 ETH tokens in the process.
  • Known as the ‘Uncle/Aunt’ rewards; 2-3 ETH tokens are occasionally sent to miners if they were able to find a solution despite their block not making it to the blockchain in time.

Computers across the globe maintain Ethereum’s engine

  • Ethereum mining

When mining any digital currency, you are solving problems in order to add new blocks to the blockchain. The computer system that signs the latest transaction to the blockchain would generate a new block in order to get 3 ETH. As this is still mining, compensation is given in proportion to the system’s processing power. Meaning, if you want to get the most ETH token value, you will need a powerful mining rig which can be very expensive.

  • Ethereum wallets

Traders all over the world that use ETH, use an Ethereum wallet. Ethereum wallet storages are the foundation of the dApps on the Ethereum blockchain. Users can use these wallets to buy and hold onto your ETH, as well as any other Ether assets in a secure and decentralized manner. Alternatively, users can use them as a method to send and receive coins/crypto assets if they so chose to do so.

  • Ethereum trading

After Ethereum launched in 2015, the cryptocurrency quickly rose to the 2nd highest market share, sitting comfortably behind Bitcoin. On a daily basis, thousands of ETH tokens are traded on cryptocurrency exchanges like iCE3X. Traders of all levels of experience, from the seasoned veterans to the newcomers may see profitable benefits with Ethereum trading.

  • Peer-to-peer marketplaces

A wide selection of peer-to-peer marketplaces assists in keeping the Ethereum blockchain running smoothly. This is made possible by allowing both prospective and current Ethereum investors to buy and sell Ether (ETH) tokens, while also keeping track of its market capitalization.

iCE3X and Ethereum

We have added ETH/ZAR markets to the iCE3X exchange. If you would like to buy or sell Ethereum in South Africa, you can do that on our exchange. Ethereum deposits are 100% free and our trading fees are competitive.

With all the features that Ethereum offers the cryptocurrency industry, we at iCE3X believe that ETH token is worth holding as a long-term asset. If anything, this is most likely why many South Africans love this cryptocurrency so much.

Ethereum is one of the most trusted cryptocurrencies on the market. Though Ethereum is second place on the market, many people argue that it is superior to Bitcoin. Even though ETH tokens are worth less than BTC tokens, With all of the features that are on the Ethereum network and the ability to create dApps, Ethereum offers better scalability than bitcoin while also providing faster transaction speeds.

Conclusion

Some believe there is definitely an opportunity for Ethereum to become the most valued cryptocurrency in the world. But for now, with the markets in a mundane state, and most cryptocurrencies down by more than 20% from their peaks; Ethereum may remain the underdog of the cryptocurrency market, despite it being in the number 2 spot already.

What are your thoughts on Ethereum? Will you be trading it with ? Let us know your thoughts in the comments below.

 

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Disclaimer Notice:

This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.