Trade Ethereum to US Dollar - ETH/USD CFD

Ethereum, based on blockchain technology, is an open-source public crypto network. The network facilitates smart contracts, enables distributed applications (DApps) and the trading of its native cryptocurrency – ether. Ether is described as the ‘crypto-fuel’ used to power the platform. Ethereum has the second largest market cap after Bitcoin (Bitcoin $150 billion, Ethereum $66 billion – May 2018).

Unlike Bitcoin, the Ethereum network uses a proof of stake system to verify transactions, as opposed to Bitcoin’s proof of work. Said to be a more diplomatic format, and cost effective, it allows anyone to take part instead of just the crypto geniuses. The primary difference in these two verification systems is the block reward. When using proof of work the miner receives a block reward, but with proof of stake merely the transaction fee is given, and not the block itself.

The platform was developed by Vitalik Buterin, the company’s cofounder, in 2011. In establishing Ethereum, he wanted to address the issues of the Bitcoin network, mainly that its approaches were individualistic and create a more multifunctional blockchain solution.

3 years later, in 2014, the company underwent a crowdsourcing campaign, selling ether (Ethereum cryptocurrency), to raise more than $18million, necessary to launch the company into the public sphere the following year in 2015.

One of the world’s most influential currencies, the US dollar dates its history back to Joachimstal, now modern-day Germany. In the town, silver ‘thalers’ were minted, each with a standardised weight – 29.2 g. These coins were widely used across the European continent and eventually found its way to the New World – America.

Following the American Revolution, in 1972 the newly formed US Congress installed the ‘thaler’ as the official currency, although at a slightly lighter weight – 27.0 g. This was done as a method of standardisation, following the corrupt ‘continental bill’ system.

Although still closely tied to the price of silver and gold, the US dollar has developed as a currency spawning a multitude of coins and notes. Today, the currency is controlled by the Federal Reserve, the central bank of the United States, established in 1913.

The USD is the world’s foremost reserve currency, held by numerous countries as part of their foreign exchange reserves. It also makes up six out of eight of the world’s Forex pairs. The US dollar is denoted by the symbol $.