Ethereum is the second largest cryptocurrency with the hearts of global developers and the most robust decentralized finance (DeFi) ecosystem today.
What is Ethereum (ETH)?
Ethereum is a global, decentralized platform for money and new kinds of applications.
- Ethereum is a decentralized network (often referred to as “the world computer”), created by Vitalik Buterin in 2013. Its network consists of an open-source, globally decentralized computing infrastructure, which executes programs called smart contracts. This network is fueled by a cryptocurrency named ether (ETH).
- Since its launch in 2015, Ethereum has relied on Proof of Work (PoW) and it plans to migrate to a Proof of Stake (PoS) consensus model, ETH in the summer of 2021 to be more energy while turning ETH into a productive asset.
- Ethereum has most users and fees generated comparatively across all cryptocurrency projects and it’s the clear winner in the break out use case for digital currencies with decentralized finance (DeFi).
- If Ethereum can continue to be the global DeFi platform and take business away from centralized banking providers, it’s upside is massive.
- The US Fed is even excited about the potential of DeFi, specifically on Ethereum. This quote below says it all.
DeFi still is a niche market with certain risks but that it also has interesting properties in terms of efficiency, transparency, accessibility, and composability. As such, DeFi may potentially contribute to a more robust and transparent financial infrastructure.Fabian Schär, Federal Reserve Bank of St. Louis Report
There is so much good content available on Ethereum is overwhelming for even experts to digest all of it. What I suggest doing is to read a bit more and then to create a plan to dollar cost average into Ethereum over a long period of time.
How Can I learn More?
Use the links above in addition these suggested references below:
(ETH) Ultrasound Money with Justin Drake – Bankless
The Ethereum Opportunity – Chris Burniske on Bankless
Into the Ether – Podcast by ETH Hub
Ethereum Foundation Youtube channel
Keep doing your own research and keep a long term view, as it’s hard to lose if your strategy is to buy and hold for the long run.
P.S. This is not investment advice.