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Know your Cryptocurrency better: 10 interesting fact about Ethereum

When it comes to popularity and market capitalization, Ethereum is the second-largest cryptocurrency in the market. While it has established itself as a powerful player in the blockchain and digital currency platform, there are many factors related to it that traders and investors do not know. In this article, we delve into the world of Ethereum to uncover 10 interesting facts about it.

Teen Vision for Versatile Blockchain:

Ethereum is a blockchain platform that enables smart contracts and decentralized applications (DApps), and it was designed to be more versatile than Bitcoin's blockchain. Vitalik Buterin, the co-founder of the blockchain platform, conceptualized the idea of Ethereum in 2013 when he was a teenager.

Ethereum's role in trade finance:

Ethereum's role in trade finance is transformative. It offers a solution to the industry's age-old challenges like copious documentation, slow processes, and high transaction costs. Customized blockchain networks built on Ethereum can enable the digitalization of documents and automate the processes through smart contracts. This makes the trade finance operations easy and ensures faster and secure payments as transactions are recorded immutably on the blockchain.

Space-based blockchain node:

In 2018, blockchain startup SpaceChain began its venture by deploying a Low Earth Orbit (LEO) satellite into space. These satellites serve as blockchain nodes. They participate in data processing, transmission, in-space data storage etc in the space environment. In 2021, they deployed the Ethereum node in space.

Security Risks posed by Ethereum:

Ethereum has been more problematic in terms of cybersecurity than its competitors. Smart contract is a significant feature of Ethereum. Needless to say, its security is important. Any vulnerabilities in these contracts can lead to significant financial losses.

Ethereum's Gas Fees and Transaction Speed Control:

In Ethereum, gas fees can compensate miners for the computational work involved in processing transactions and maintain the network's security. However, what makes Ethereum unique is that users have the option to influence the speed of the transactions processed. By offering higher gas fees, users can fasten the confirmation of their transactions.

Endorsement from major tech companies:

Ethereum has received support and endorsement from major tech companies. This support serves as a testament to Ethereum's credibility. Where most cryptocurrencies are endorsed by celebrities, the support of big tech giants implies that Ethereum is a technology that has gained the trust of established players in the industry. Ethereum is adopted by major companies like Microsoft, Barclays etc.

Ethereum’s dominance in Initial Coin Offerings (ICOs):

Initial Coin Offerings (ICOs) is a fundraising method where businesses issue and distribute their own cryptocurrency tokens to raise capital. Ethereum stands out as the primary host for ICOs within the cryptocurrency market, with approximately 75% of all ICOs taking place on the Ethereum blockchain.

Ethereum's test networks:

Ethereum's test networks are essential tools for blockchain developers. These test networks provide a controlled and cost-effective environment for developers to experiment with their smart contracts and applications. Developers often rely on these test networks to validate code functionality. With these test networks’ help, developers identify and rectify bugs, and ensure that their smart contracts perform as intended.

Crowdfunding and Group Funding:

Ethereum initially faced the challenge with raising capital. The solution occurred in the form of crowdfunding and group funding. This early collaboration involved multiple founders who played a crucial role in shaping the project.

Ethereum’s investment stability:

Ethereum can offer more stability and investment guarantees compared to Bitcoin and other cryptocurrencies. Ethereum's fundraising mechanisms often involve initial coin offerings (ICOs). They present a structured and secure way for projects to raise capital. This is particularly appealing to investors and project creators because it mitigates the risk of funds being misappropriated or lost.