Ethereum (ETH): what kind of cryptocurrency and how does it work?

Ethereum - Ethereum (ETH) rate for today

ETH is a cryptocurrency that was not initially created to become just another token on the exchange.
It was conceived as a system for concluding contracts between two parties. Based on its technologies, it is possible to record specified transactions in the circulation of goods or services, and at the same time abandon the standard bureaucratic and legal method. This technology is called a smart contract. The popularity of the currency is due to the fact that the price of 1 Ethereum is relatively low. There is also promise, since concluding contracts based on this blockchain technology excludes a third party (bank, intermediary, guarantor or other participant) from the transaction. As a result, the process is faster and more profitable.

But given the legal difficulties of introducing such technology into common practice, as well as the reluctance of third parties to lose their profits, it is now almost never used. However, investors put money into the token in the hope that the technology will one day be adopted and this will increase their value.

• Ethereum to dollar exchange rate
• How much is Ethereum worth in dollars?
• Ethereum to ruble exchange rate
• Ethereum to Euro exchange rate today
• Ethereum trading chart online
• Where can I find out the current Ethereum exchange rate?
• Where can I buy Ethereum at a favorable rate?
• Ethereum price dynamics

Ethereum to dollar exchange rate

The ETHUSD rate from TradingView
1 Ethereum in dollars today is $2255.7. Other characteristics of this cryptocurrency are also considered to understand the complete investment or trading picture:

1. The starting rate over the last 24 hours was $2234.91. Over the past 24 hours, its price has increased significantly.
2. Over the past 24 hours, the total volume of dollars that were used in concluding transactions with the cryptocurrency in question amounted to $1,106,760,000. This is 2 times less than Bitcoin. But nevertheless, ether rightfully takes 2nd place in the ranking of popularity of cryptocurrencies.
3. The capitalization level is now equal to $263,616,074,065.
4. There are a total of 116,866,637 units of tokens in the current circulation.
5. During the day, the coin increased in price by +20.79$.

Such an interesting rate of Ethereum against the dollar now makes the cryptocurrency attractive for traders who engage in short-term transactions. With only 5 tokens in your hands, you can earn more than $100 within 24 hours.

Difference between Bitcoin and Ethereum

And now it’s time to look at all the differences between Ethereum and the first cryptocurrency, Bitcoin. We briefly talked about them at the beginning of the article, but let's look at them in more detail, systematize them and put them in a table.

By and large, the cryptocurrencies Bitcoin and Ethereum are not direct competitors. Ethereum is an internal means of payment for clients of a decentralized system, and Bitcoin is an international financial instrument that allows you to make payments anonymously and with a minimum commission.

In the Bitcoin network, cryptocurrency is the final product, it is the whole raison d'être of its blockchain. Bitcoin is a digital analogue of dollars, rubles and other national currencies. ETH coins are more like digital shares of a company that provides services to customers within a peer-to-peer network.

Ethereum to ruble exchange rate

As of July 28, 2021, the exchange rate for 1 Ethereum in rubles is 166,987. Other characteristics of this cryptocurrency pair:

1. Over the past 24 hours, the following maximum and minimum rates were observed: 171,452-158,742.
2. During the day, the price of Ethereum in rubles increased by +1117.75. In percentage terms this is +0.673876%.
3. Latest changes in dynamics depending on periods:

• Week – + 22 224;
• Month – +13 185;
• Quarter – -35,309.

• Over the last 24 hours, the turnover of the ETH-RUB currency pair amounted to 351,434,000. This is a rather small figure. When the graphs show a decline, this amount increases by 2-3 times.
• The current capitalization is 19,515,268,870,869.
• There are 116,867,239 in circulation, some of the coins were purchased for rubles.

Now there is an increase in the exchange rate of Ethereum against the ruble - the graph clearly demonstrates this. But the token is influenced by both static characteristics and economic or legal ones. Also, large exchange players often take a direct part in the formation of exchange rates, for example, when they put up a lot of ether for sale.

Favorable conditions for investment will be a period of falling prices. At the end of April and beginning of May, this figure decreased significantly. But now it is leveling out, a correction is being observed. Therefore, entering a cryptocurrency pair will be beneficial for short-term traders and long-term investors.

The most convenient way to view the cost of Ethereum in rubles online is on the unistex.com exchange. Information about rates is updated here in a timely manner; there are many interesting currency pairs. It also provides information and recommendations from experienced traders and cryptocurrency exchange professionals.

How Ethereum works. Explaining it for dummies

All transactions on the Ethereum network are grouped into blocks, and the blocks form a block chain or blockchain .

A blockchain is a clearly structured chain of blocks of information, each of which is a set of cryptographically encrypted transactions.

Blocks are created by miners: they use computing power to find a single hash signature. A new block is created every 15 seconds, then verified by the network and added to the very end of the chain. The reward to miners for a found block is 2 ETH.

The Ethereum blockchain uses asymmetric cryptography to create combinations of numbers and Latin letters that provide access to ETH coins. A new wallet in the system is signed with a private key and also has a public key (or wallet address).

A special feature of the Ethereum public key is that it always starts with “0x” and is case-insensitive.

The user communicates the wallet address or public key to the network participant from whom he expects the transfer of coins. The private key is always kept secret.

Where do coins come from?

Unlike bitcoins, of which no more or less than 21 million coins will be mined, the emission of Ethereum is not limited .

Preserving the value of an asset by gradually limiting supply was exactly the idea of ​​the creators of Bitcoin. Ethereum does not strive to become the most expensive cryptocurrency, and limited supply could lead to an increase in the value of ETH . This contradicts the concept of the project: the Ethereum platform was created as a basis for decentralized applications (DApps), conducting ICOs and attracting capital from investors.

The main method of obtaining new crypto coins is mining .

Miners are engaged in the production of new ETH coins . To mine them, they use the computing power of their equipment. Thus, a new block is created every 15 seconds , and reward is currently 2 ETH .

As you know, in the Bitcoin network the block reward is halved every 4 years; the Ethereum network does not have a built-in mechanism for reducing the reward for miners. Network users themselves agree on how much they will receive. Initially, the block reward on the Ethereum network was 5 ETH, then it was reduced to 3 ETH (-40%), and even later - to 2 ETH (-33%).

There is currently talk online that in order to reduce Ether inflation and maintain its purchasing power, the block reward needs to be reduced to 0.5 ETH (-75%). True, many consider such measures to be excessive and argue that a reduction to 1.5 ETH or 1 ETH will be sufficient for now.

What is Ethereum backed by?

Again, let’s compare it with Bitcoin: market price formation: the BTC rate is provided only by supply and demand , that is, it is formed by the market itself.

In the situation with Ether, the opposite is true: the cost of ETH coins directly depends on the financial success of the entire Ethereum platform. The ether price is growing largely due to progress in the field of decentralized finance DeFi and a large influx of investments into the industry. The launch of ETH 2.0, according to experts, will also have a positive effect on the ether exchange rate.

Many are confident that the value of Ethereum will only increase in the future. The argument is simple: the more attention there is to the Ethereum platform, the higher the value of its tokens.

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