Why Ethereum is so important in the world of crypto – Stuff

As one of the most popular blockchain platforms in the world, Ethereum (ETH) has enabled developers to create decentralised applications and smart contracts. With a market capitalization of over US$200 billion (NZ$325 billion) as of April 2023, it’s a distributed network that uses cryptography to secure transactions and maintain the integrity of the blockchain, just like Bitcoin.

However, it differs from Bitcoin in that it utilises a different security model, has much larger block sizes, does not use proof of work in an attempt to be more versatile and, as such, can be used as a platform for building decentralised applications.

One of the key features of Ethereum is the ability to create ERC-20 tokens, which are digital assets that can be used to represent anything from a company’s shares to a digital collectible. When listed, these tokens can be bought and sold on cryptocurrency exchanges and their value is determined by supply, demand and their respective tokenomics.

The price of Ethereum is subject to market fluctuations, and can be affected by various factors such as market sentiment, technological developments and regulatory changes. In early 2022, ETH hit an all-time high of over US$4000, but by mid-2022, the price had dropped to around US$1200. Since then, the price has been on an upward trend and as of April 2023, ETH is trading at around US$1800.

Ethereum has a thriving community with 224 million unique wallets that are currently holding ETH; this level of adoption shows that many people believe in the potential of Ethereum. A large and active developer community is also constantly working on new applications and improving the technology.

If you are interested in learning more about Ethereum, there are many resources available online at Binance Academy.

Additionally, you can trade or buy ETH on Binance, which offers a user-friendly interface and low fees.

Binance is a global cryptocurrency exchange and has a significant presence in New Zealand, with Binance New Zealand being the local subsidiary.

The exchange is among the top crypto exchanges worldwide, with a strong focus on providing secure and transparent trading services to users.

Disclaimer: This content is for general information purposes only, not investment advice. Cryptocurrencies, including Bitcoin, are volatile and fluctuate on a day-to-day basis, thus, trading requires proper diligence and sound judgement in order to evaluate the risks associated.

Nothing in this article constitutes investment or legal recommendation, nor should any data or content mentioned in the newsletter be relied upon for any investment activities. You should consider seeking independent legal, financial, taxation or other advice to check how the article content information relates to your unique circumstances.

Binance New Zealand is not affiliated, associated, endorsed by, or in any way officially connected with any individual or organisations mentioned in the article. Binance New Zealand is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly by use of this newsletter and expressly disclaims any and all liability for any loss or damage you may suffer.