Deep Dive 2 - Ethereum
Hello Anons,
Once a week I will find a coin with a real purpose, do some research on it, and write up a Lean Letter for you to view. I will not be schilling coins without a purpose. Only real coins that I see fit into this innovative, ever-changing space.
This week, let’s take a look at coin #2 on the top charts- Ether. This is a big one because now we are diving into coins of ecosystems. This one being Ethereum.
What is Ether?
Ether is the cryptocurrency connected to the Ethereum decentralized blockchain. This blockchain is well known for its implementation of decentralized smart contracts. A smart contract is simply a program that runs on the blockchain and has a set of rules to implement. The key difference between a legacy contract and a smart contract- the smart contract can be executed programmatically once the set of rules have been filled. The Ethereum documentation gives the example of a vending machine. Where you input money, select an option, and then you are given your snack.
The Ethereum whitepaper was released in 2013 by Vitalik Buterin. They managed to raise 18.3 million in Bitcoin to fund the project. Ethereum has an unusually large number of co-founders, eight, with the most known being Charles Hoskinson. Hoskinson left the project to pursue his own that we know as Cardano.
How can you obtain Ether?
You can easily purchase Ether on all of the major crypto exchanges. It is the #2 coin in crypto. I will include a Coinbase referral link at the bottom for purchasing.
As of writing this article, Ethereum is still on 1.0. What does this mean? Ethereum is still a Proof-of-work blockchain. You are able to use you GPU to mine Ether- solving complex math problems the quickest. There are issues around the Ethereum ecosystem causing some very high gas fees to execute any programs on the ecosystem. The developers are deciding to take this ecosystem to a Proof-of-stake environment within the next year. This is known as Ethereum 2.0. What does this mean? Instead of mining your ETH- you will have to hold ETH, stake it, and earn rewards from staking your ETH to the blockchain. This hard fork is expected to be out in the year 2022.
What is Ether’s role?
As of writing this article, the Ethereum ecosystem has hundreds of applications running on it. There are Decentralized Exchanges (DEX), Decentralized Finance (DeFi), Wallets, and most known NFTs. OpenSea is the biggest NFT marketplace in the game- which is on the Ethereum ecosystem. Even with the market being down, OpenSea has been doing 156.92m volume in the past 24 hours. The gas fees are the bottleneck for transactions and volume on this ecosystem.
Make no mistake, even though the ecosystem is being used a lot. Ether has a great store of value. You can compare ETH to most alt coins, and let ETH be the denominator, it is outperforming almost the entire alt market. ETH is up 418% YTD. 1,192,037 ETH have been burned since the last fork. Check that out on https://watchtheburn.com/.
Latest News:
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Referrals
DeFi Cultivator - This set of videos will go through a few core concepts along with demos of swaps, liquidity pools, farms, and more.
How You Can Reach Financial Independence In 5-10 Years! - Route2Fi is going to show you the steps he is taking to reach financial independence, and now he is going to teach you to do the same!
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Nothing in this email is intended to be financial advice. Always do your own research.