Published on April 20th, 2018 | by Sunit Nandi0
6 Surprising Facts about Ethereum
Many people have heard of Ethereum since it is the second most popular cryptocurrency after Bitcoin, a fact demonstrated by its second largest market cap of any cryptocurrency. Others may have learned about Ethereum because of its strong use case. Here are six surprising facts about Ethereum that you may not know but probably should.
It Is More Than a Cryptocurrency
Ethereum is a cryptocurrency, and it has even forked, but the interest in it goes far beyond its role as an alternative currency. We already brought up Ethereum’s role in the introduction of smart contracts. What many don’t know is that Ethereum supports an entire ecosystem of apps beyond smart contracts. Ethereum is really an entire platform of decentralized apps called dapps. Ethereum has its own tokens, and the Ethereum platform lets developers issue their own assets on the blockchain network.
Ethereum Wasn’t Always Number Two
Ethereum may be number two among the crowded field of cryptocurrencies today, but this wasn’t always the case. Its value appreciated 500% between early 2016 and early 2017, and it has appreciated 2800% since 2015. The trading volume of the cryptocurrency has fluctuated wildly, too. Volume has ranged from a hundred thousand dollars a day to $600 million in March 2017.
It Has Worldwide Interest
Search volume for the term Ethereum was low until mid-2015. The search volume for this term started to rise after that point. The search volume hit a peak in mid-2016, fell, and then hit a new high at the start of 2017. The highest search volume for the term Ethereum was mid-March 2017. Switzerland has remained the number one searcher for that term. Venezuela came in a close second. Ethereum has also gained popularity in Canada lately. If you’re a Canadian investor, Crypto Head has a guide for Canadian citizens interested in buying Ethereum.
Banks Prefer Ethereum
Bitcoin may have broader usage and more hype, but Ethereum is what the financial institutions are looking. A startup recently helped nearly a dozen banks troubleshoot a blockchain based system for training. It was done using an Ethereum platform under the watchful eyes of one of the biggest tech companies on the planet. Smart contracts played a role in banks trusting Ethereum over Bitcoin.
Ethereum Doesn’t Have the Same Limits as Bitcoin
Bitcoin has a cap on the total number of Bitcoins available. Ethereum doesn’t have that limit. Instead, it limits the number of “Ether” or coins that can be mined each year. That limit is 18 million. Over time, this means there could be far more Ether than Bitcoin.
Ethereum’s Surprising Ties to Other Cryptocurrencies
Ethereum is a cryptocurrency and group of apps running off the same blockchain. All cryptocurrencies host their own “initial coin offerings” to generate funds by giving investors tokens of their cryptocurrencies. More than three-quarters of cryptocurrencies are hosted on the Ethereum blockchain. There is some irony in Ethereum’s programming language, Solidarity, and its infrastructure is being used to create other cryptocurrencies.
Ethereum is popular because of its decentralized app platform and strong business case. And it is still evolving due to a dedicated community of developers and users who provide feedback to make it even better.