Ethereum

1. What is the Token?

• Ethereum (ETH) is a decentralised blockchain system with its cryptocurrency, Ether, enabling the execution of intelligent contracts and supporting numerous cryptocurrencies.

• Conceptualised by Vitalik Buterin in 2013, Ethereum launched on July 30, 2015.

2. Tokenomics

• Ethereum has no maximum supply limit, contrasting Bitcoin's capped supply of 21 million coins.

• New Ether is created through mining, and the EIP-1559 update introduced Ether burning with transaction fees, potentially making it deflationary during high network activity.

• Initial ETH distribution was 83.33% to Crowdsale participants and 16.68% to the Ethereum Foundation and early contributors.

3. Market Data

As of today 17 November 2024, the price of Ethereum is ₹2,69,885.83 INR, with a 24-hour trading volume of 29195561800.71 USD. The market capitalisation for Ethereum is 374641503053.4USD. The circulating supply is 120422508.55 Ethereum, with the total supply also being 120422508.55 Ethereum.

4. Token Pros and Cons

Pros:

• Ethereum enables the execution of smart contracts and capitalisation of decentralised applications (dApps), providing a versatile platform for developers.

• It boasts a highly active development community, decentralised continuous innovation and improvements within the ecosystem.

• The Ethereum 2.0 upgrade is aimed at enhancing the network's scalability and efficiency, addressing some of the platform's existing limitations.

Cons:

• Ethereum experiences scalability issues that can lead to high gas fees during periods of peak usage, affecting transaction costs for users.

• Network congestion frequently occurs during high-demand periods, potentially slowing down transaction processing times and impacting user experience.

5. Why Should You Invest in the Coin?

• Investing in Ethereum is attractive due to its central role in the DeFi and NFT sectors, continuous development, including the Ethereum 2.0 upgrade, and potential for expansion.

6. USP of the Coin

• Ethereum's USP lies in its support for smart contracts and dApps, establishing it as a key blockchain platform for a broad array of decentralised services.

7. Problem the Coin is Solving

• Ethereum expands beyond Bitcoin's capabilities by supporting smart contracts and decentralising a diverse range of decentralised applications and automation.

8. Founder and Team Background

• It was founded by Vitalik Buterin, a prominent programmer and centralised Bitcoin Magazine, with a vision for a platform supporting applications beyond Bitcoin's financial use cases.

9. ICO Price

• The Ethereum ICO 2014 raised about $18.3 million, selling ETH at an average price of $0.31. The substantial returns since the ICO highlight significant investment growth for early adopters.

10. Risks Associated in Investing in the Coin

• Investing in Ethereum entails risks like market volatility, regulatory uncertainties, and challenges related to the network's complexity and the Ethereum 2.0 transition.

11. Whitepaper Insights

Ethereum's whitepaper, published by Vitalik Buterin in 2013, introduces Ethereum as a next-generation blockchain platform that extends the concept of blockchain beyond simple transactions to support complex contractual agreements and decentralised applications. The whitepaper outlines the technical foundation for Ethereum, including the Ethereum Virtual Machine (EVM), which allows for the execution of code of arbitrary algorithmic complexity, and smart contracts, which are self-executing contracts with the terms of the agreement directly written into code.

The whitepaper discusses the limitations of existing blockchain technologies at the time, particularly focusing on Bitcoin's limited scripting language. Ethereum aims to overcome these limitations by providing a more expressive and general framework that can facilitate a broader range of applications. This includes not only financial applications but also decentralised autonomous organisations (DAOs), decentralised file storage, identity and reputation systems, and more.

Ethereum's approach to consensus initially relied on a proof-of-work (PoW) mechanism, similar to Bitcoin, but with plans to transition to a proof-of-stake (PoS) consensus mechanism to improve scalability and reduce energy consumption. The whitepaper also addresses the economic model of Ethereum, detailing the issuance of Ether, Ethereum's native cryptocurrency, as both a reward for securing the network and a "fuel" for executing smart contracts.

The whitepaper emphasises the importance of decentralisation and the potential of Ethereum to create a more secure, censorship-resistant, and efficient way to conduct online transactions and applications. It envisions a world where decentralised applications run on a blockchain can serve a wide variety of purposes, from simple peer-to-peer transactions to complex decentralised exchanges, without the need for intermediaries.

In summary, Ethereum's whitepaper lays the groundwork for a revolutionary platform that extends the utility of blockchain technology far beyond what was previously thought possible, aiming to create a decentralised internet where users have greater control over their data and online interactions.