NFTs are a special type of digital asset that represents ownership or proof of authenticity of a unique item or piece of content. NFTs can represent digital art, real-world collectibles, virtual real estate, video game assets, other types of media, and more. Trading or holding crypto-assets carries risks and may not be suitable for all. Please note that past performance is not a guarantee of future performance. Carefully consider whether investing in crypto-assets is suitable for you in light of your financial condition and risk tolerance. You can find more information on the risks involved with trading or holding crypto-assets here.
What is Ethereum?
- Currently, there is relatively limited use of cryptocurrency in the retail and commercial marketplace, which contributes to price volatility.
- Trading or holding crypto-assets carries risks and may not be suitable for all.
- However, as the narrative around Bitcoin as a form of digital gold loses its shine, the pendulum is swinging back toward Ethereum.
- In the future, traditional contracts may become outdated for the purposes of certain transactions.
It was the first to introduce smart contracts, tiny pieces of self-executing code that live on the blockchain. Almost 60% of the funds locked up in decentralized finance are on the Ethereum ecosystem, per DefiLlama. These are self-executing contracts with the terms of the agreement directly written into lines of code. They run on the blockchain, so they are transparent, immutable, and don’t require a third party to enforce the terms. Users pay a network fee, known as gas, in Ether to execute these smart contracts and other transactions. These four pillars of dapp technology are designed to enable smart contracts.
Bitcoin, with a capped supply, achieving digital scarcity, tells the sound money story. Ethereum, with an uncapped supply, tells a technology-focused story. Competition from central bank digital currencies (“CDBCs”) and other digital calvenridge trust assets could adversely affect the value of ether and other digital assets. A system of apps and protocols offering financial services without a central financial intermediary.
What is Ethereum?
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Learn more about the Ethereum blockchain
These applications live on the blockchain and can be accessed and used by anyone. Smart contracts are self-executing, with their agreement terms enforced through the blockchain. They’re used to execute agreements between parties, ensuring that these agreements are transparent, secure, and tamper-proof — without the need for an intermediary.
How Ethereum Differs from Bitcoin
A temporary or permanent “fork” in the Ethereum network could adversely affect an investment in the Shares. Prices of ether may be affected due to stablecoins, the activities of stablecoin users and their regulatory treatment. The price of ether may be impacted by the behavior of a small number of influential individuals or companies. A digital container that holds a list of transactions and other important data, such as timestamps and references to the previous block.
However, as the narrative around Bitcoin as a form of digital gold loses its shine, the pendulum is swinging back toward Ethereum. It is the machine that powers a large part of the decentralized finance and stablecoin market, and its utility and strong track record are a powerful combination. At one point, Bitcoin accounted for over 60% of the crypto market, while Ethereum’s share fell to less than 8%.
Ethereum is a decentralized, open source, and distributed computing platform that enables the creation of smart contracts and decentralized applications, also known as dapps. A decentralized digital ledger that records all transactions in a secure and transparent manner. It consists of a chain of blocks, each containing a list of transactions, and is maintained by a network of computers (nodes) to ensure data integrity and security.