The rise and fall of ethereum: what is its value today

Ether, also called as ethereum, is the #2 cryptocurrency in terms of market capitalizationso it is one of the digital currencies that arouses the most interest among miners (users of cryptocurrencies).

Ethereum is a platform for blockchain open Source that runs with the use of your native currency, called ether or ETHso even though people use these names as synonyms they are different things.

Ether is a token that is used only in the blockchain ethereum to pay transactions. This token is responsible for powering almost everything that happens on the network, which can be used by anyone to create and run smart contracts, which are software programs that work autonomously and without user intervention.

Lo and behold, ethereum’s growth can be attributed in part to its role as smart contractsbecause thanks to this innovation it implemented the bases for the decentralized finance industry, decentralized apps and non-fungible tokens such as NFTs.

The ethereum platform was created in 2015 by programmer Vitalik Buterinwith the intention of promoting an instrument for decentralized and collaborative applications.

However, among its shortcomings is its limited scalabilitythat is, it only allows 15 transactions per second, this situation already put ethereum in check when in December 2017 the CryptoKitties app ‒a game in which users could trade digital kittens for speculative purposes‒ led to a huge congestion on the platform in which many transactions did not go through.

According to the Binance portal, the ethereum digital currency currently has 122.22M units created.

Ethereum cryptocurrency value

Hour: 1:05 p.m. (UTC time)

Worth : 1549.04 dollars

Change in the last 24 hours: -2.72%

Change in the last hour: -0.45%

Popularity by capitalization: #two

What is a cryptocurrency

(Photo: File)

A digital currency is a digital medium exchange that does not physically exist and that uses cryptographic encryption to ensure the integrity of its operations, while maintaining control over the creation of its new units.

Bitcoin was the first to be launched on the market and was later followed by others that have also had great relevance, such as litecoin, ethereum, IOTA, tether, cash, ripple, decentraland, even some born from memes like dogecoin.

Cryptocurrencies have various elements that make them unique: not being regulated by any institution; not require third parties in transactions; Y almost always use accounting blocks (blockchain) to prevent new cryptocurrencies from being created illegally or transactions already made from being modified.

However, by not having regulators such as a central bank or similar entities, they are pointed out not being reliable, being volatile, promoting fraud, not having a legal framework that supports its users, allowing the operation of illegal activities, among others.

Although it could be a paradox, cryptocurrencies in turn guarantee security to their miners in terms of the network in which it is located (framework) and that implies code management; hacking this security is possible but difficult, because whoever tries it would have to have a computational power even higher than that of Google itself.

How to get them

“cryptocurrencies
Presentation of a bitcoin ATM in San Salvador, El Salvador. June 24, 2021. (PHOTO: REUTERS/Jose Cabezas)

To acquire and exchange them you can through specialized portals. Its value varies depending on supply, demand and the commitment of miners, so it can change faster than traditional money, but the more people are interested and want to buy a given currency, the higher its price.

However, whoever invests in this type of digital assets must be very clear that this form brings with it a high risk to capitalWell, just as there may be an increase, there may also be an unexpected crash and end the savings of its users.

To store them, users must have a digital purse or wallet, which is actually a software through which it is possible to save, send and make transactions of cryptocurrencies. In reality, this type of wallet only stores the keys that mark the ownership and right of a person over a certain cryptocurrency, so these codes are the ones that must actually be protected.

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The article is in Spanish

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