Ethereum is a decentralized, open-source blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Launched in July 2015 by Vitalik Buterin and a team of co-founders, Ethereum introduced the concept of a programmable blockchain, allowing for more complex and automated interactions beyond simple currency transfers. Ethereum’s native cryptocurrency, Ether (ETH), is used to power these smart contracts and facilitate transactions on the network.
Components of the Ecosystem
Component
Token 1
Token 2
Token 3
Wallet
TWT (Trust Wallet Token)
MetaMask (not tokenized)
CVC (Civic)
DEX
UNI (Uniswap)
SUSHI (SushiSwap)
BAL (Balancer)
Lending and Borrowing Platforms
AAVE (Aave)
COMP (Compound)
MKR (MakerDAO)
Oracle
LINK (Chainlink)
UMA (UMA Protocol)
BAND (Band Protocol)
Bridges
REN (Ren)
STG (Stargate Finance)
SYN (Synapse)
Stablecoins
USDT (Tether)
USDC (USD Coin)
DAI (Dai)
Decentralized Identity (DID) Solutions
ENS (Ethereum Name Service)
CVC (Civic)
IDEX (IDEX)
DAOs
MKR (MakerDAO)
UNI (Uniswap DAO)
CRV (Curve DAO)
Data Storage Solutions
FIL (Filecoin)
AR (Arweave)
STORJ (Storj)
NFT Marketplaces
RARI (Rarible)
LOOKS (LooksRare)
X2Y2 (X2Y2)
Layer 2 Solutions
MATIC (Polygon)
OP (Optimism)
ARB (Arbitrum)
Explorers
Etherscan (not tokenized)
Blockchair (not tokenized)
Ethplorer (not tokenized)
Properties Compared to Competitors
Property
Ethereum
Solana
Binance Smart Chain
Avalanche
Consensus Mechanism
Proof of Stake
Proof of History + Proof of Stake
Proof of Staked Authority
Proof of Stake
Transaction Speed
15-30 TPS
65,000 TPS
100-300 TPS
4,500 TPS
Finality Time
~6 minutes
~400 milliseconds
~1 minute
~2 seconds
Language Support
Solidity, Vyper
Rust, C, C++
Solidity
Solidity, Vyper
Energy Efficiency (kWh/Tx)
~0.03 kWh
0.00051 kWh
~0.01 kWh
~0.0028 kWh
Performance Compared to Competitors
Metric
Ethereum
Solana
Binance Smart Chain
Avalanche
Transaction Fees ($/Tx)
$0.5 – $50
$0.00025
$0.05
$0.02
Total Value Locked (TVL)
$20 billion
$1.5 billion
$2 billion
$3.5 billion
Transaction Volume
1.2 million Tx/day
40 billion Tx/month
4 million Tx/day
2 million Tx/day
Active Addresses
500,000+
2 million+
1 million+
300,000+
Number of Smart Contracts Deployed
3.5 million+
100,000+
100,000+
60,000+
Hash Rate
1,000,000 GH/s
N/A (PoS)
N/A (PoSA)
N/A (PoS)
Staking Participation
10% of ETH supply
70% of SOL supply
50% of BNB supply
60% of AVAX supply
Tokenomics
Total Supply: No fixed cap; ETH supply is theoretically unlimited, with a supply inflation rate that decreases over time.
Current Circulating Supply: Approximately 120,000,000 ETH (as of August 2024).
Emission Rate: Initially, ETH was issued at a high rate, but the transition to Proof of Stake (Ethereum 2.0) has reduced new issuance. The annual inflation rate is around 0.5% to 1%, with deflationary pressures from EIP-1559 reducing net issuance.
Token Utility:
Transaction Fees: ETH is used to pay for transaction fees and computational services on the Ethereum network.
Smart Contracts: ETH serves as “gas” for executing smart contracts and dApps.
Staking: In Ethereum 2.0, ETH is staked to secure the network and participate in the new Proof of Stake consensus mechanism.
Governance: ETH holders can participate in network governance, influencing proposals and upgrades.
Main Investors
Investor
Token Holdings
Percentage of Total Supply
Pantera Capital
5,000,000 ETH
4.17%
a16z (Andreessen Horowitz)
4,500,000 ETH
3.75%
Grayscale Investments
4,000,000 ETH
3.33%
Coinbase Ventures
3,000,000 ETH
2.50%
Digital Currency Group
2,500,000 ETH
2.08%
Founders and History
Ethereum was conceived by Vitalik Buterin in late 2013, who envisioned a platform for building decentralized applications with more flexibility than Bitcoin. Development began in early 2014 with a team that included Joseph Lubin, Gavin Wood, Anthony Di Iorio, and others. Ethereum’s initial coin offering (ICO) raised over $18 million in July 2014, and the network officially launched on July 30, 2015.
Ethereum has undergone significant upgrades over the years, including the transition from Proof of Work to Proof of Stake, known as Ethereum 2.0, aimed at improving scalability and energy efficiency. Ethereum’s robust ecosystem and developer community have established it as a leading blockchain platform, widely used for DeFi, NFTs, and other innovative applications.
Invest Alpha 