Ethereum (ETH)

Ethereum was launched in 2015 by Vitalik Buterin, a young programmer and cryptography enthusiast, who wanted to create a decentralized platform for developing applications beyond simple financial transactions, unlike Bitcoin.
The idea for Ethereum was born in 2013 when Buterin published the project’s whitepaper, detailing a vision for a “programmable blockchain” where developers could create decentralized applications (dApps) and smart contracts, executed automatically without a trusted third party.
In 2014, Ethereum raised an Initial Coin Offering (ICO), becoming one of the largest at the time, to fund the network’s development.
Ethereum’s founding team included several influential figures from the blockchain ecosystem.
In addition to Buterin, there was Gavin Wood, who created the Solidity programming language for smart contracts and played a crucial role in Ethereum’s technical architecture.
Joseph Lubin, entrepreneur and co-founder of ConsenSys, was also a major player in the promotion and development of the Ethereum ecosystem.
Other co-founders, such as Anthony Di Iorio, Mihai Alisie, Amir Chetrit, Charles Hoskinson, and Jeffrey Wilcke, also contributed significantly to the early stages of the project, each bringing various skills ranging from development to financing.
Over the years, Ethereum has continued to evolve, supported by a global community of developers, researchers and entrepreneurs.
In 2022, Ethereum reached a major milestone with“The Merge“, an update that shifted the consensus mechanism from Proof of Work (PoW) to Proof of Stake (PoS), significantly reducing network energy consumption and laying the foundations for improved scalability and security.
Today, Ethereum is the world’s second largest blockchain by market capitalization, and continues to play a leading role in blockchain innovation with projects in decentralized finance (DeFi), NFTs, and beyond.

Ethereum is a decentralized blockchain platform that enables developers to create and deploy decentralized applications (dApps) and smart contracts.
Here’s how Ethereum works:

1. Blockchain and Proof of Stake (PoS) consensus: Ethereum uses a public blockchain, a decentralized database shared between thousands of nodes (computers) worldwide.
   Since “The Merge” update in 2022, Ethereum has operated on a Proof of Stake (PoS) consensus mechanism, where validators, who lock in a certain amount of Ether (ETH), participate in the validation of transactions and the creation of new blocks.
   This model is more energy-efficient than the Proof of Work (PoW) used previously, and enhances the network’s security and scalability.
2. Smart contracts: Smart contracts are self-executing programs that run on the Ethereum blockchain when predefined conditions are met.
   Written in Solidity, a programming language created for Ethereum, these contracts can automate a wide range of transactions, from financial exchanges to games and decentralized applications.
   They enable complex operations to be carried out without the need for a trusted third party.
3. Ether (ETH), the network’s fuel: Ether (ETH) is Ethereum’s native cryptocurrency and serves as the network’s “fuel”.
   Users pay a fee in ETH (called “gas”) to execute transactions, interact with smart contracts, or deploy dApps on the blockchain.
   The amount of these fees depends on the complexity and resources required to process the transaction.
   Ethereum’s fee model was optimized with the EIP-1559 update, introducing a “burn” mechanism that gradually reduces the supply of ETH by burning off part of the fee, potentially increasing the value of ETH in the long term.
4. Decentralized applications (dApps): Ethereum is a platform for creating dApps, which operate without intermediaries or censorship.
   Developers can use the Ethereum blockchain to deploy applications in various fields, such as decentralized finance (DeFi), NFT (non-fungible tokens), games, social networks and much more.
   dApps are accessible to all and resistant to fraud and censorship, offering greater transparency and security.

Ether tokens (ETH) are essential to the operation of the Ethereum blockchain and serve several key purposes:

1. Payment of transaction fees (“gas”): ETH are used to pay transaction fees on the Ethereum network.
   Each transaction, smart contract execution or decentralized application deployment (dApp) requires “gas”, a unit of measurement of the computing power required.
   ETH fees provide an incentive for validators to process transactions and maintain network security.
2. Staking and network validation: With Ethereum’s move to the Proof of Stake (PoS) consensus model, ETH are used for staking, where token holders lock in a quantity of ETH to become validators.
   These validators participate in the validation of transactions and the creation of new blocks, and are rewarded with ETH for their honest participation, contributing to the network’s security and decentralization.
3. Exchange and investment: ETH is also used as a cryptocurrency for exchange and investment.
   It can be exchanged for other currencies, used as a means of payment for goods and services, or held as a digital asset in wallets for long-term investment purposes.
4. Participation in the Ethereum ecosystem: ETHs enable users to interact with the Ethereum ecosystem, notably by participating in decentralized finance applications (DeFi), buying or selling non-fungible tokens (NFT), or participating in DAOs (decentralized autonomous organizations).
   They facilitate participation in a multitude of services and applications built on the Ethereum blockchain.

• Total supply and issuance: Unlike Bitcoin, Ethereum has no fixed maximum supply of tokens.
  However, ETH issuance is controlled and varies according to the consensus model.
  With the transition to Proof of Stake (PoS) via “The Merge” in 2022, the annual issuance of new ETH has been significantly reduced (around 90% reduction), as block rewards are now awarded to validators who stak ETH, rather than miners.
  This reduction makes ETH issuance more predictable and less inflationary.
• Burn mechanism and deflation: The burn mechanism introduced by the EIP-1559 update in August 2021 gradually reduces the supply of ETH.
  Part of the transaction fee paid in ETH (“base fee”) is automatically destroyed (or “burned”), creating deflationary pressure on the supply of tokens.
  This mechanism aims to balance ETH issuance through staking, and can potentially make ETH deflationary, especially when demand for network use is high.
• Distribution and staking: A large proportion of ETH in circulation is held by individual users, institutional investors and decentralized finance protocols (DeFi).
  Since the switch to PoS, ETH staking has become a key component of tokenomics, as holders can stake their ETH to become validators and earn ETH rewards.
  This provides an incentive to hold on to ETH, reducing the supply available on the market.
• Use in the ecosystem: ETHs are used to pay transaction fees, interact with smart contracts, participate in dApps, and exchange assets in the Ethereum ecosystem.
  As the primary means of payment on the Ethereum network, demand for ETH is directly linked to adoption and activity on the blockchain, influencing its price and value.

1. In 2024, Ethereum made significant strides consolidating its dominant position in the cryptocurrency ecosystem.The US Securities and Exchange Commission (SEC) approved the first spot Ethereum ETFs, paving the way for massive institutional investment and potentially billions of dollars in capital inflows, which could stimulate a notable rise in its price.At the same time, the “Dencun” upgrade was rolled out, aimed at reducing data charges and improving transaction efficiency. This improvement also benefits Layer 2 networks such as Arbitrum and PolygonEthereum revenues tripled in the first quarter of 2024, reaching $370 million, largely thanks to an increase in transaction fees and network usage. In addition, total locked value (TVL) in Ethereum’s DeFi ecosystem reached $55.9 billion, reflecting significant growth.These developments, combined with increased institutional adoption and ongoing technology updates, make Ethereum a major force in the cryptocurrency sector for 2024.

• Create a Coinhouse account: Go to the Coinhouse website and register by creating an account.
  You’ll need to provide an e-mail address, set a secure password, then verify your e-mail address to activate your account.
• Verify your identity: As Coinhouse is a regulated platform, you’ll need to verify your identity before you can buy cryptocurrencies.
  This requires providing identity documents (such as an ID card, passport, or driver’s license) as well as proof of address.
  Verification of these documents can take from a few minutes to a few hours.
• Add a payment method: Once your account has been verified, add a payment method to make your purchases.
  Coinhouse accepts payment by credit card (Visa or Mastercard) or bank transfer.
  Please ensure that your account has sufficient funds to complete the purchase.
• Buy Ethereum (ETH): Log in to your Coinhouse dashboard, then search for “Ethereum” or “ETH” in the list of available cryptocurrencies.
  Select Ethereum, enter the amount you wish to buy.
  You can exchange ETH for USDT or USDC(buy USDC).
• Confirm and finalize the purchase: Before finalizing, check the details of the purchase, including the amount of ETH you will receive and the associated transaction fees.
  Once everything has been checked, click on “Confirm” to finalize the purchase.
  The ETH will then be credited to your Coinhouse crypto wallet.
• Secure storage of your ETH: You can keep your ETH on Coinhouse or transfer them to a personal wallet for added security.
  Coinhouse also offers secure storage solutions, such as digital safes, to protect your assets.

On the market, Ethereum’s value is represented by the Ether price, which, like Bitcoin, is set by supply and demand.

Ether is also listed on numerous exchange platforms.
Its price is influenced not only by the news surrounding its ecosystem, but also by speculation, as with any financial asset.

Ethereum has become a fundamental platform in the cryptocurrency ecosystem.
New projects are created almost daily on its blockchain.
Although the network is not without its critics, particularly with regard to transaction fees, there are many developments and improvements underway, and sooner or later the price of Ether should reflect these developments.
But beware: while investing in Ether over the medium to long term may prove to be a wise choice, its high volatility should not be overlooked: its value can rise or fall sharply in the space of just a few days.
In December 2018, the share price was down to 75 euros.
Since the summer of 2020, a strong upward trend has returned, with the price gaining around 1200% over one year to stand at around 1,500 euros.
It’s important to consider these variations before buying Ethereum.
In August 2023, the price of Ether stabilized at around $1400.
With the rise in the Bitcoin price since October 2023, the Ethereum (ETH) price reaches $2400 in December 2023. On August 28, 2024, following the launch of Ethereum Spot ETFs in the United States a few months ago, the Ethereum price was EUR 2284.09.