Ether

Ethereum (ETH) is an open source blockchain-based software platform that can be used for sending and receiving value globally with its native cryptocurrency, ether, which provides utility to the network.

The Ethereum blockchain facilitates the execution of smart contracts which are self-executing contracts with the terms of the agreement directly inscribed into the code. The advent of smart contracts has also led to the creation of decentralized autonomous organizations (DAOs) and an entire decentralized finance ecosystem, or “DeFi.” ETH is among the most popular cryptocurrencies and currently ranks just second to Bitcoin.

How do I buy, trade, or sell ETH?

Step by step

1. Onboard with us by creating an account, passing KYC, and providing your TIN number. Click here for more information on how to onboard.
2.Once onboarded, log in to the exchange. Click here for more information on how to log in.
3.After logging in, deposit funds. Click here for more information on how to deposit funds.
4.Once you have deposited funds, select an ETH pair from the list of assets.
5.Open a spot position and place an order. Click here for more information on how to spot trade with Bullish. 

First proposed in 2013 by computer programmer Vitalik Buterin, Ethereum was designed to expand the utility of cryptocurrencies by allowing developers to create their own special applications. Unlike traditional apps, these Ethereum-based decentralized applications (DApps) are self-executing thanks to the use of smart contracts. Smart contracts are code-based programs that are stored on the Ethereum blockchain and automatically carry out certain functions when predetermined conditions are met.  

In November 2013, Buterin released the Ethereum white paper and a month later, Buterin asked  Amir Chetrit to join his project. In January 2014, Buterin attended the Bitcoin Miami conference, where he met the people who would form the original Ethereum Foundation.

In August 2014 Ethereum launched ether through an initial coin offering. The Ethereum Public Blockchain was launched on July 30, 2015 in a collaborative effort led by Vitalik Buterin.

Scalability

On September 15, 2022, Ethereum transitioned its consensus mechanism from proof-of-work (PoW) to proof-of-stake (PoS) in an upgrade process known as “the Merge,” where validators would do work based on the quantity of ETH they possessed and what they wanted to “stake” as collateral. Under the proof-of-stake mechanism, validators must stake at least 32 ETH to participate in the block validation process and secure the Ethereum network. The more ETH a validator stakes, the higher the probability of them being chosen to propose a new block of data transactions for confirmation on the blockchain. The protocol randomly selects a validator to propose a new block, and the selected validator’s proposed block is then checked by other validators. If the majority of validators agree on the validity of the new block, it is added to the blockchain. 

Validators are incentivized to act honestly and maintain the network’s integrity because they risk losing a portion, or even all, of their staked ETH if they try to validate fraudulent transactions or otherwise act maliciously. In return for staking their ETH and participating in the validation process, validators are rewarded with additional ETH. Not everyone has the necessary amount of ETH to stake, and not everyone wants to run their own validating node due to technical requirements. For these reasons, staking pools and services have emerged, allowing users to pool their ETH together to reach the staking minimum and share in the returns.

Governance

The reductions in block rewards aren’t programmed into Ethereum’s code like Bitcoin’s halving events are. Instead, members of the community propose changes, called “Ethereum Improvement Proposals,” or EIPs, and the rest of the community votes on whether to include the proposals in updates to Ethereum’s software code. Here is a breakdown of ether’s issuance schedule to date.

Usage

The Ethereum Public Blockchain often serves as a proving ground for innovative protocols. The network allows for direct transfers between accounts via a decentralized infrastructure, where participants retain custody of their digital assets without third-party control or intervention.

Ethereum token standards are the blueprints for creating tokens that are compatible with the broader Ethereum network. These include tokens that can be traded for one another (fungible) as well as tokens that are inherently unique and cannot be mutually exchanged (NFTs). Ethereum token standards were invented by Ethereum developers to help users create new digital currencies more easily, faster and cheaper than starting from scratch.

While there are several different token standards known as “ERC” deployed on the ethereum network, three are commonly used:

• ERC-20: For creating fungible tokens that have similar properties to bitcoin and other mainstream cryptocurrencies.
• ERC-721: For creating non-fungible, unique tokens such as NFTs.
• ERC-1155: A multi-token standard used for creating fungible, non-fungible and semi-fungible tokens.

How are Bitcoin and Ethereum different?
Bitcoin was conceived as an alternative to traditional money, aiming to be a decentralized and digital cash system. Ethereum is an open-source platform for creating and implementing smart contracts and decentralized applications (DApps) which utilizes its native token ether (ETH).

What are smart contracts?
Smart contracts form the cornerstone of Ethereum’s application layer. They are computer programs stored on the blockchain that follows “if this then that” logic. Guaranteed to operate as per the pre-defined rules embedded in their code, these contracts cannot be modified once they have been created.

What are altcoins?
Alternative coins or “altcoins” are all cryptocurrencies other than Bitcoin. They entered the market with the aim to address Bitcoin’s perceived limitations and introduce additional or new capabilities. For example, some altcoins use different consensus mechanisms to validate transactions or open new blocks. While Bitcoin is primarily a digital currency, many altcoins serve various functions, such as Ethereum’s Ether, which is used to pay transaction fees within its network.

Can Ethereum be mined?
Ethereum mining used to refer to the process of validating transactions and securing the Ethereum network. After moving to proof-of-stake (PoS), now, the network uses ether (ETH) to secure the blockchain rather than energy.

Is there a max ETH supply?
No, unlike BTC which has a limited supply, ETH has an infinite supply. 

What are the benefits of Ethereum over Bitcoin?
Ethereum transactions are faster than Bitcoin transactions, and transaction fees are typically lower. Ethereum also has a large and active developer community, which means that there are constantly new and innovative projects being built on the Ethereum blockchain.

Who owns Ethereum?
Ethereum is open-source and a decentralized network therefore no single entity controls or owns it.

What are the units of ETH?
Wei is the lowest value unit (10^-18 ETH), followed by Kwei, Mwei, Gwei, Szabo, Finney, Ether, KEther, MEther, GEther, and TEther respectively. 

How is the value of ETH determined?
Like all cryptocurrencies, Ethereum’s value is determined by the price of its native token ETH, and how it changes over time. This change depends on the supply and demand at a given time on a cryptocurrency exchange.

Are Ethereum transactions anonymous?
While Ethereum transactions are harder to trace than traditional electronic transactions, they are not completely anonymous as the crypto wallet’s address is stored in the public blockchain. Each transaction is linked to a public key, an alpha-numerical string that serves as a pseudonym for the user. This public key, while not directly linked to the user’s real-world identity, can be traced using tools known as Bitcoin explorers. This enables fraud prevention as transactions can be publicly traced.  Another point is that pseudo-anonymity can be compromised when users exchange their cryptocurrency for other digital assets, or when they register with centralized digital asset platforms or blockchain-based applications, as these platforms may implement a Know Your Customer (KYC) process.

What are key use cases for Ethereum?
Ethereum enables building and deploying smart contracts and decentralized applications (dApps) without downtime, fraud, control, or interference from a third party.

What is Layer 1 vs Layer 2 blockchain?
A Layer 1 blockchain is the base architecture for a decentralized cryptocurrency network. Examples of Layer 1 blockchains include Bitcoin and Ethereum. These blockchains handle the processing and security of a cryptocurrency network through a common consensus mechanism, such as proof-of-work (PoW) or proof-of-stake (PoS). A Layer 2 blockchain refers to network protocols that are layered on top of a Layer 1 solution. Layer 2 protocols use the Layer 1 blockchain for network and security infrastructure, but are more flexible in their ability to scale transaction processing and overall throughput on the network. Bitcoin’s Lightning Network is an example of Layer 2.

What is proof-of-stake vs. proof-of-work?
Proof-of-stake (POS) uses randomly selected validators to confirm transactions and create new blocks. Proof-of-work (POW) uses a competitive validation method to confirm transactions and add new blocks to the blockchain.

Why did Ethereum transition from proof-of-work (PoW) to proof-of-stake (PoS)?
PoS addresses scalability issues and energy efficiency. There is also better  security at a lower cost with PoS compared to PoW.

Why buy ETH with Bullish?
Bullish leverages innovations of decentralized finance (DeFi) within a regulated framework so you can execute fast, reliable crypto trades with near-zero spreads, even in volatile markets. Learn more about trading on Bullish here.

What methods of payment can I use to buy ETH?
You may deposit digital assets or fiat currency (USD) to transact on Bullish. Click here to learn more about depositing funds.

Can I buy and sell ETH instantly?
If you have created an account, passed the KYC process, and made a deposit, you can buy or sell ETH instantly by placing a market order.

What is the minimum amount of ETH I can buy?
Visit our Help Center to check minimum and maximum order sizes for ETH.

How does Bullish keep my ETH safe?
Bullish’s best-in-class crypto custody architecture maximizes the security of your assets by mitigating risks, without sacrificing the speed of your deposits or withdrawals. Learn more about how Bullish keeps user assets safe here.