Bitcoin holds the top spot as the worlds first and largest cryptocurrency. The coin carries worth based on its position as a store of value capable of transacting value globally and comparatively easier than other similar assets, such as gold. Ethereums asset, Ether (ETH), has a different value proposition, arguably valuable for a number of reasons.
Ethereum derives its value from a number of different factors, including gas fees, its usage as collateral, its ability to be lent and borrowed, its use as a medium of exchange for trading and NFTs [nonfungible tokens], and the fact that it can be staked for interest, Scott Melker, a crypto trader and the host of The Wolf Of All Streets podcast, told Cointelegraph, adding: It also has speculative value and is gaining increased attention and interest from institutional investors.
The backstory behind Ethereum
Ethereum is the network on which its tradable coin, ETH, runs. Ethereum launched in 2015 based on a concept from a programmer named Vitalik Buterin roughly two years prior. In short, Ethereum acts as a platform on which developers can build projects or solutions.
The Ethereum network has become a staple in the crypto space over the years, with many projects based on it. A large number of initial coin offerings used Ethereum in 2017 as a funding vehicle. Crypto assets based on Ethereums blockchain are called ERC-20 tokens, although ERC-721 tokens also exist as nonfungible tokens built on the network.
When a project builds on Ethereum, it may come with an asset for use within that ecosystem. That asset would likely be an ERC-20 token. It is not uncommon, however, for projects to switch over to their own mainnet blockchain after launching initially on Ethereums blockchain.
Much of the decentralized finance sector of crypto also began on Ethereum, with decentralized exchanges based on Ethereums blockchain hosting trading for numerous tokens associated with the niche. DeFi lets participants borrow and lend crypto assets, among other capabilities. As noted by M ...
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