Introduction to Ethereum
Ethereum is an open-source, decentralized blockchain platform that enables smart contract functionality. Its native cryptocurrency, Ether (ETH), powers the Ethereum Virtual Machine (EVM) to execute peer-to-peer agreements. Proposed in 2013 by Vitalik Buterin, Ethereum launched in 2014 via an ICO and has since become the second-largest cryptocurrency by market cap.
Key Features:
- Smart Contracts: Self-executing agreements stored on-chain
- Tokens: Custom assets created via smart contracts (ERC-20 standard)
- Scalability Solutions: Sharding, Plasma chains, and state channels (in development)
- Consensus Evolution: Transition from PoW to PoS (Proof-of-Stake)
Market Dynamics
Current ETH Price Factors
- Supply/demand on major exchanges
- DeFi ecosystem growth
- Network upgrade timelines (e.g., Ethereum 2.0)
- Regulatory developments
Historical Price Milestones
| Year | Key Event | Price Impact |
|---|---|---|
| 2015 | Frontier Launch | <$1 |
| 2017 | ICO Boom | $1,400+ ATH |
| 2020 | DeFi Summer | 400% growth |
Mining Economics
Hardware Requirements
- GPUs: AMD RX 580 (28.5 MH/s) or NVIDIA RTX 3080 (100+ MH/s)
- Minimum Setup: 4GB VRAM, 60GB SSD, 650W PSU
Profitability Calculation
Daily Revenue = (Hashrate * ETH Price * 86400) / (Network Difficulty * 2^32)Frequently Asked Questions
What determines ETH's value?
Ether's price reflects network utility (gas fees), store-of-value demand, and speculative trading activity across exchanges.
How does Ethereum 2.0 affect investors?
The PoS transition reduces inflationary pressure by eliminating miner rewards, potentially increasing scarcity.
Where can I securely store ETH?
Options include:
- Hardware wallets (Ledger/Trezor)
- Non-custodial wallets (MetaMask)
- Exchange wallets (for active trading)