Ethereum
Ethereum is a decentralized, open-source blockchain platform that enables developers to build and execute smart contracts and decentralized applications (DApps). It uses its native cryptocurrency, Ether (ETH), to facilitate transactions and incentivize participants to maintain the network. Ethereum also allows for the creation of new tokens and the deployment of custom logic on the blockchain, making it a powerful tool for building decentralized applications and services.
Categories:
Layer1
Updated:
2023-04-03
Tags:
Proof of Stake
Ticker:
ETH
Token Strength.
Token Utility:
Gas. $ETH is used to pay for transaction on the network.
Demand Driver:
Demand mainly comes from the gas fee to be paid in $ETH.
Value Creation:
Payment network and foundation to run smart contracts. Think DAO, dApp or NFT The more users transact, the more the project gains in value - more people everyone can transact with. The ecosystem gains with each new user, application and transaction
Value Capture:
ETH can be used to pay for transactions on the network. With Ethereum 2.0, ETH can be staked to secure the network and receive a yield. In a way, the more people use the network, the more $ETH is required to fuel transactions.
Business Model:
The business model for Ethereum protocol: Revenue comes from: Transaction fees are generated by users of the network. Revenue is denominated in: ETH is the native cryptocurrency of the Ethereum blockchain. Revenue goes to: Validator and node operatos. Stakers also receive inflation for staking and securing the network. The percentage varies depending on the current level of staking participation but is currently around 4-5% annually.
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Protocol Analysis.
| Problems & Solutions | Problem: Bitcoin's scripting language was too limited to support the creation of complex smart contracts and dApps. Solution: Ethereum introduced a Turing-complete programming language and decentralized platform, enabling developers to build and run smart contracts and dApps with greater functionality and flexibility on its blockchain. |
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| Predecessors | Cardano - A decentralized blockchain platform that enables the creation of smart contracts and decentralized applications. Polkadot - A multi-chain network that allows different blockchain networks to connect and communicate with each other. Solana - A high-performance blockchain platform that uses a unique consensus algorithm to enable fast and secure transactions at scale. |
Investment Take
... coming soon
Tokenomics Timeline.
2015-07-30
Ethereum Launch
Ethereum launches as PoW Blockchain
2021-08-05
EIP-1559
Changes in fee distribution and introduction of burning of part of the fee, taking $ETH out of circulation.
2022-09-06
Ethereum 2.0 Merge
Ethereum moves to Proof of Stake
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