Ethereum: Crypto’s Evolutionary Platform

Ethereum: Crypto’s Evolutionary Platform

Growing positive momentum is driving the Ethereum platform and its ether currency forward. When the artist known as Beeple sold a digital artwork in early March through Christie’s for $69.3m, he used non-fungible token (NFT) technology lodged on the Ethereum platform. Following the success of his experiment, British artist Damien Hurst and others are set to follow, bringing a new dimension to the art world.

The Beeple collage, “Everydays: the First 5,000 Days,” was a single composite jpeg file of digital images sketched every day for more than 13 years. As an NFT, it’s a one-of-a-kind asset that cannot be interchanged. The token is a certificate of ownership.

Just as the art world experiments with its future on Ethereum, so the crypto platform is establishing itself as the place where a range of old-world sectors are discovering, through trial and error, where they fit in the new digital world. Most commonly, the finance sector is leveraging it to tokenize assets on the blockchain—or issue a token that digitally represents a tradeable asset on a blockchain—exploring a new digital frontier.

Technically speaking, Ethereum is a decentralized, open-source blockchain technology and software platform that enables peer-to-peer, or “smart,” contracts as well as decentralized applications. Smart contracts are programs stored on the blockchain that automatically execute agreements as predefined conditions are met. Instead of a centralized set of servers, the Ethereum network relies on a large, global network of servers to verify data and process transactions. For those wishing to play the rise of Ethereum, its ether currency is gaining value in the cryptocurrency world as the platform gains ground.

For the period from December 2015 to March 2021, the Ether appreciated by an annualized 273%, albeit with the volatility that one expects of a cryptocurrency. For comparison, Bitcoin was up just under 180% on an annualized basis.


Johnny Liles

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