Often compared to an app store, ethereum is a blockchain-powered platform for building decentralized software and apps. Among crypto enthusiasts, ethereum is known for the cryptocurrency it uses to facilitate transactions: ether, or ETH.
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As of this writing, the top three cryptocurrencies ranked by market cap are Bitcoin, Ethereum, and XRP, in that order. Dogecoin, the first-ever "memecoin," was created as a joke in 2013, and it's now the ninth-most valuable form of cryptocurrency in the world.
Among crypto enthusiasts, ethereum is known for the cryptocurrency it uses to facilitate transactions: ether, or ETH. It's often compared to an app store. The underpinnings of ethereum's blockchain include dApps, which operate using automated scripts called "smart contracts."
Blockchain, the key technology behind bitcoin, is a new network that helps decentralize trade and allows for more peer-to-peer transactions. Wired challenged political scientist and blockchain researcher Bettina Warburg to explain blockchain technology to five different people: a child, a teen, a college student, a grad student, and an expert.
Non-fungible tokens are primarily built on the Ethereum blockchain, though other blockchains host the tokens. NFT projects hosted on Ethereum include Bored Apes and plots of land in Decentraland.
The two main consensus mechanisms—the way blockchains confirm and enshrine information—are proof-of-stake and proof-of-work. An overview compares the differences between the two and the latter's ability to reduce the energy intensity of the computation process, which has emerged as one of the biggest criticisms of the crypto boom.
It’s a competitive method requiring “miners” to solve cryptographic puzzles, often using equipment that consumes massive amounts of energy. Ethereum switched to proof-of-stake, a less energy-intensive method in which “validators” stake crypto to be randomly chosen to check transactions.
Decentralized autonomous organizations (DAOs) are typically formed with a specific goal in mind. ConstitutionDAO, for instance, was made to raise funds to buy a copy of the US Constitution (it failed).
Users can buy plots of land in the virtual Decentraland universe to collect, trade, and battle Pokemon-like monsters in the video game “Axie Infinity.”
Ethereum is the second-largest cryptocurrency by market cap behind Bitcoin. Usually, that comparison just scratches the surface of the overall market cap. Instead, a visual pits the tokens up against each other on a per-token basis and shows how and why the Ethereum/bitcoin ratio has fluctuated over time.
Ethereum's underlying blockchain allows developers to build decentralized applications (dApps) that leverage smart contracts to seamlessly run decentralized financial tools (crypto wallets, exchanges, marketplaces, and more), along with Web3 concepts like non-fungible tokens.
The United States is home to more than 33 million businesses, the vast majority of which are small businesses, with millions being created (and others closing shop) every year. These businesses often rely on loans, provide the goods and services that keep the economy flowing, and sometimes even grow large enough to enter public markets or provide private investment opportunities. Explore key topics central to business and finance, from the role of the Federal Reserve to how initial public offerings work, how millions of American students finance higher education, and more.