In this digital economy, there are many ways for creators to earn online. For example, Ethereum is an open access cryptocurrency. Everyone can use its digital money and data-friendly services no matter your background or location. You only need to have an internet connection.
It’s a community-built technology. And it’s the network behind the cryptocurrency Ether (ETH) and thousands of applications you can use today.
What is Ethereum?
ETH is scarce digital money that you can use on the internet. It’s the same as Bitcoin, and here’s how it is different from traditional money:
- It’s all yours. No third-parties needed
- Cryptography keeps your money and transactions safe
- Peer-to-peer payments are allowed
- It’s decentralized
- Open to anyone. You only need internet and a wallet
- Available in flexible amounts, you can buy fractions of ETH at a time.
History of Ethereum
Let’s have a deep dive into how Ethereum was established and how it grew across the years.
In 2013, Vitalik Buterin, the founder of Ethereum, published an introductory paper outlining the central vision of the project.
In 2014, Dr Gavin Wood created a technical definition of the Ethereum protocol, and the Yellowpaper was released.
In the same year, Ether, the cryptocurrency of Ethereum, officially went on sale for 42 days and back then, people were able to buy it using Bitcoin.
In 2015, Frontier was a live implementation of the Ethereum project. Originally it was intended for technical users, specifically developers. And ETH price was at $1.24USD
In 2016, several protocol changes and a network change gave Ethereum the ability to do further upgrades. In a few months, the price of ETH increased to $12.50USD
In the same year, a hacker drained an insecure DAO contract of over 3.6 million ETH. However, this hack was not a defect in the protocol, so the community continued to pursue the establishment of Ethereum Classic.
The Tangerine Whistle forks was the very first response created to the denial of service (DoS) attached on the network. And they also addressed urgent network health issues regarding underpriced operation codes.
The Spurious Dragon fork was the second response to the network’s second denial of service (DoS) attacks. They also addressed the following issues:
- tuning opcode pricing to prevent future attacks on the network
- enabling “debloat” function of the blockchain state
- adding a replay attack protection
In 2017, the price of ETH went from $9.84USD to $334.23USD. The developers created the Byzantium fork, and it addressed the following:
- Reduced block mining from 5 to 3 ETH
- Delayed the difficulty bomb by a year
- Non-state changing calls to other contracts
- Cryptography methods allowed layer 2 scaling.
In 2019, the price of ETH went down to $136.29USD. The developers also created the Constantinople fork to address the following:
- Ensure the blockchain didn’t freeze before proof-of-stake was implemented
- Optimized gas cost of specific actions in the EVM
- Added the ability to interact with addresses that haven’t been created yet
In the same year, developers also created the Istanbul fork to address the following:
- Optimize gas cost
- Improve DoS attack resilience
- Layer 2 scaling solutions based on SNARKs and STARKs
- Interoperability of Ethereum and Zcash
- More creative functions for contracts
In 2020, the Muir Glacier fork was introduced to address the following:
- Delay difficulty bomb
- Increase in block difficulty of the proof-of-work consensus
- Increase wait times for sending transactions using DApps (Decentralized Apps)
Furthermore, developers deployed a staking deposit contract. And this had a direct impact on the timeline for launching a critical Eth2 upgrade, also known as the Beacon Chain.
In December 2020, the Beacon Chain was introduced, and the price of ETH went up to $586.23USD.
In 2021, the Berlin upgrade optimized gas cost for specific EVM actions. And it also increased the support for multiple transactions types. As a result, the price of ETH also tripled to $2454.
Recently, the London upgrade introduced EIP-1559, and it reformed the transaction fee market. And at the same time, changes in how gas refunds are handled and the Ice Age schedule was affected by this upgrade.
As of now, the Altair upgrade is the first upgrade scheduled for the Beacon Chain. After that, it hopes to add support for “sync communities.”
So why is it essential that we discuss the history of Ethereum? First, because we can see significant improvements in the past years, this only means that Ethereum will continue to evolve in the coming years.
Are you interested in investing in Ethereum?
You can start investing in ETH by depositing your money and using a credit or debit card to buy ETH. You can buy or sell ETH or trade Ether anytime from a Cryptocurrency Exchange platform such as Swyftx. They have the lowest trading fees and smallest spreads on the Australian market.
With low trading fees and small spreads, you get to keep more in your pocket. And to create a trading account, all you need to provide are the following information:
- Email address
- Phone number
After providing all this information, you can create a secure password and verify your identification. After completing everything, you can already deposit funds into your account and start your Ethereum trading journey. You can buy and sell on the same platform, and at the same time, you can set automatic buy and sell orders.
If you are relatively new to cryptocurrency, you can use Swyftx’s demo mode to trade ETH without any financial risk at all. This allows you to feel how it is to buy and sell Ethereum in real-time without incurring real gains or losses. In addition, this will help you understand the Ethereum market in depth.
Once you are more confident in your trading strategy and style, you can turn off the demo mode and real trade money.
There are many cryptocurrencies and lots of other tokens on Ethereum, but there are some things that only ETH can do. So if you want to start your cryptocurrency trading journey, you need to do your due diligence and do research about it.
Or you can also check out cryptocurrency exchange platforms for more information.