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)?
The Ethereum is a public, decentralized peer-to-peer network or blockchain with its cryptocurrency called Ether. Ethereum is also a platform on which smart contracts can be built and run. Being started in August 2014 by fans worldwide, the Ethereum blockchain is a place to store different data types. So, any decentralized app (DAapp) can use this data.
What is ETH total supply?
You might probably be surprised to know that the supply of Ethereum (ETH) is endless. After the switch to Proof of Stake (PoS) in 2021-2022, the programmable inflation will become between 0.5-2% per year. Note that the programmable issue of new ETH is different from unpredictable fiat money printing! Such an elastic Ether supply is great to adjust to the needs of a growing crypto economy.
What are the Ethereum benefits?
The benefits of Ethereum and usage cases are unlimited. Here is a summary of the most important advantages for ETH holders.
Transaction fees
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?
The Merge
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)?
To sell Ethereum (ETH) for USDT or WBTC, follow three steps:
- 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)?
To deposit Ethereum (ETH) on your Tokpie account at no cost, follow this guide. Also, this short video instruction will help you.
Note: Tokpie doesn’t charge any fees for depositing.
How to withdraw Ethereum (ETH)?
To withdraw Ethereum (ETH) from your Tokpie account, use this instruction. You must have an eth compatible wallet address to be able to withdraw tokens. Also, check the withdrawal commission.
Disclaimer
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.
Useful links
- Ethereum website
- Most popular market pairs to trade Ethereum:
- Ethereum trade statistics on Tokpie
- Tokpie’s trade fees and withdrawal commissions
For any questions or cooperation, you can contact Tokpie at https://t.me/tokpie.