Ethereum needs no introduction. However, many people still don’t know what Ethereum (ETH) is. This article briefly summarizes the benefits of the ETH and how to trade it on Tokpie. Also, you will learn about upcoming updates – Proof of Stake and Shard Chains. They are aiming to improve ETH mass adoption and scalability of the Ethereum blockchain.
Decrease ETH transaction fee: EIP-1559 update
To avoid the abnormally high cost of transactions in the Ethereum network, devs decided to implement the EIP-1559 update. As a result, senders will start paying the base fee + tips to the miners. Moreover, the base fee will be automatically burning. Therefore the Ether circulation will be decreasing. Such a useful update shall happen in July 2021.
What is Ethereum (ETH)?
Initiated in 2015, Ethereum is so much more than just a cryptocurrency. Picture Ethereum as an open-source, blockchain-based platform created by Vitalik Buterin. Its innovation lies in its ability to facilitate smart contracts – self-executing contracts with the terms of the agreement directly written into the code. Consequently, Ethereum opens a world of opportunities, facilitating decentralized applications (dApps) in a secure and robust manner.
Certainly, Ethereum’s native cryptocurrency, Ether (ETH), plays a crucial role. This digital currency is used to power transactions and the execution of smart contracts on the Ethereum network. Indeed, Ether is often likened to ‘fuel’ for the Ethereum ecosystem. It’s not just an investment or trading asset. Instead, it becomes the lubricant that enables the network’s diverse and dynamic functionalities to operate seamlessly.
Moreover, Ethereum distinguishes itself from Bitcoin, its most recognizable peer, through its expansive capabilities. Bitcoin was designed as a digital currency and is primarily used for transferring value. In contrast, Ethereum is designed for programmability, enabling a host of applications beyond mere transactions. Ethereum’s versatile nature has resulted in a wealth of developments and innovations in the blockchain space.
What is ETH total supply?
Understanding the supply dynamics of Ethereum (ETH) presents an interesting study. Unlike Bitcoin, Ethereum does not have a maximum supply cap set in its code. Instead, it operates on an inflationary model. As a result, more Ether can be minted as necessary to reward miners and maintain the network’s functionality.
As of my knowledge cutoff in September 2021, there were over 117 million ETH in circulation. However, Ethereum 2.0, an upcoming upgrade to the Ethereum network, introduces some changes that might affect the future supply of ETH. This includes the introduction of a proof-of-stake consensus model that could significantly reduce the rate at which new ETH is created.
Nevertheless, Ethereum also introduced an update known as EIP-1559 in August 2021, which includes a mechanism to burn a portion of the transaction fees. Hence, this provides a deflationary pressure to counteract the inflationary supply model. The total supply of ETH thus remains dynamic, being influenced by multiple factors and updates.
What are the Ethereum benefits?
Ethereum offers numerous benefits, primarily anchored in its foundational design to enable smart contracts and decentralized applications. This unique architecture means that Ethereum isn’t just a platform for monetary transactions. Instead, it can support complex operations, making it more akin to a global computer.
Firstly, Ethereum’s programmability allows for the creation of decentralized applications (dApps) and smart contracts. These tools can automate and enforce agreements without the need for a central authority. This capability allows Ethereum to support entire decentralized financial systems, gaming platforms, and more.
Moreover, Ethereum’s transparency and decentralization also offer security benefits. The open-source nature of the blockchain means that every transaction and operation can be verified, making fraud extremely difficult. The decentralization ensures that no single entity has control over the network, protecting it from manipulations.
Furthermore, Ethereum’s adaptability is another notable advantage. As demonstrated by the ongoing development of Ethereum 2.0, the Ethereum network is not static. It is continually evolving and adapting, working towards solving its limitations and enhancing its capabilities, maintaining its position at the forefront of blockchain technology.
Ether is a type of asset that fuels the Ethereum network. You must have Ether or ETH to pay for transaction fees on the Ethereum network. For example, when you want to transfer XXX tokens (or ETH) to someone you have to pay a small fee nominated in ETH. Also, you pay a fee whenever you interact with any smart contract deployed on the Ethereum blockchain. For instance, you want to add funds to the liquidity pool on Uniswap DEX, issue your own tokens, or work with any DApps.
Therefore, if you have ETH, then you can afford to pay fees in the Ethereum network.
Proof of Stake (PoS). Ethereum 2.0.
Nowadays, Ethereum 1.0 works on a consensus mechanism. It is called Proof of Work (PoW) and requires physical computing power (miners) and electricity (work) to build blocks on the blockchain. On the other hand, the Proof of Stake (PoS) mechanism (upcoming Ethereum update) will completely change the approach.
The goal of Proof of Stake is to improve scalability and energy efficiency. The PoS is relying on validators (virtual miners) and deposits of ETH. So, if you have enough ETH, you can become a validator and regularly earn a transparent share of all fees paid in the Ethereum blockchain. Notable, isn’t it?
Developers plan to launch the Merge stage during April-June 2022. As a result, ETH-stakers get the ability to validate Ethereum Mainet. Moreover, the old hardware miners could decide to reinvest their assets into the new proof-of-stake system.
How Shard Chains improve ETH scalability?
The Shard chains are the name of another upcoming update. This scalability mechanism aims to improve the Ethereum blockchain’s scalability. Crypto-passionate people from all over the world are waiting for that “shading” update. With Shard Chains, people will forget about the enormous gas fees and long waiting transaction time.
The sharding mechanism splits data processing responsibility among many nodes. As a result, transactions go in parallel rather than consecutively. It decreases the transaction fee and time required to complete every transaction.
How to buy Ethereum (ETH)?
There are two basic ways to obtain Ethereum (ETH). The first way is to buy ETH with a bank card, or Apple Pay for fiat money. The second option is to purchase ETH for USDT or WBTC in three simple steps:
- Fund your account with USDT, or WBTC.
- Open ETH/USDT, or ETH/WBTC order book, and place your trade order to buy. Use this instruction if you don’t know how to place a trade order.
- Withdraw ETH to your personal Ethereum wallet or hold.
How to sell Ethereum (ETH)?
- Deposit ETH on your account.
- Open ETH/USDT, or ETH/WBTC order book, and place your trade order to sell. Read the instruction if you don’t know how to place a trade order.
- Withdraw USDT or WBTC to your personal Ethereum wallet or hold them on your account.
How to deposit Ethereum (ETH)?
Note: Tokpie doesn’t charge any fees for depositing.
How to withdraw Ethereum (ETH)?
Please be aware that Tokpie charges a fee for the listing. Tokpie does not give any investment, legal, tax, financial advice, or warranty of token price performance or successful fundraising.
- Ethereum website
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- Ethereum trade statistics on Tokpie
- Tokpie’s trade fees and withdrawal commissions
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