$ETH
Ethereum (ETH) is the second-largest cryptocurrency by market capitalization, known for introducing smart contracts and a robust decentralized ecosystem. Launched in 2015 by Vitalik Buterin and a group of developers, Ethereum extends beyond a currency by enabling decentralized applications (dApps) and other blockchain-based innovations.
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Key Features of Ethereum (ETH):
1. Smart Contracts
Self-executing agreements where the terms are coded into the blockchain.
Eliminates the need for intermediaries, making processes more efficient.
2. Ethereum Virtual Machine (EVM)
A computing environment that runs decentralized applications.
Developers can deploy their own dApps, NFTs, or tokens on Ethereum.
3. Transition to Proof of Stake (PoS)
In 2022, Ethereum completed the Merge, transitioning from Proof of Work (PoW) to PoS.
This upgrade makes Ethereum more energy-efficient and improves scalability.
4. ERC-20 and ERC-721 Tokens
Ethereum powers many cryptocurrencies (ERC-20) and NFTs (ERC-721) on its network.
Many DeFi platforms use ERC-20 tokens for lending, staking, and trading.
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Use Cases of ETH:
Gas Fees: ETH is used to pay transaction fees and interact with dApps on the network.
DeFi: Ethereum is home to decentralized finance protocols like Uniswap, Aave, and MakerDAO.
NFT Marketplaces: Popular NFT platforms such as OpenSea and Rarible operate on Ethereum.
Staking: ETH holders can lock up their tokens to help secure the network and earn rewards through staking.
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ETH Supply and Economics:
No Fixed Supply: Unlike Bitcoin’s hard cap of 21 million coins, ETH has no strict supply limit. However, the introduction of EIP-1559 (in 2021) burns a portion of gas fees, reducing supply over time.
Inflation-Reduced Post-Merge: Ethereum’s switch to PoS has significantly decreased new ETH issuance.
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Future Developments:
1. Ethereum 2.0 and Layer 2 Solutions: Focus on improving scalability with technologies like sharding.
2. Layer 2 Networks: