2015

Ethereum started in 2015. At first, you could buy it for about 75 cents during its early sale. Once it was up and running, its price stayed under $10 for a while, through 2015 and into early 2016.

2016

In March 2016, ETH's price went up for the first time, going above $10. This happened as more people started to notice it and use it for creating apps that could work without central control.

2017

Then, in 2017, ETH's price took off. It went up to more than $1,500 by January 2018. This big jump was because of the trend of ICOs (Initial Coin Offerings), which are like fundraisers for new digital coins, and many of them used Ethereum.

2018

After that high point, ETH's price fell a lot. By December 2018, it was around $80. This drop happened because the excitement around ICOs cooled down, and there were worries about rules for digital money.

2020

In 2020, ETH started to climb again. This was because of DeFi (Decentralized Finance), which is a financial service that runs on Ethereum's network without central control. This helped ETH become more useful.

2021

The year 2021 was another big one for ETH. Its price hit a new ATH of over $4,800 in November. Thanks to DeFi becoming bigger, people getting excited about NFTs (Non-fungible tokens), and the hope for improvements with Ethereum 2.0.

2022

The crypto market saw a big drop after reaching its highest point. Ethereum's value fell to just $890 on June 18, 2022. Since that low point, Ethereum's price has been slowly rising. By the end of 2022, it had gone back up over $1,000.

2023

Throughout 2023, the price of Ethereum changed a lot. Sometimes it was worth more than $2,000 and at other times it was close to $1,000. The big price changes happened partly because of the U.S. Securities and Exchange Commission (SEC). This government group took legal action against the two largest places where you can buy and sell cryptocurrencies, Binance and Coinbase.

Ethereum is a platform that lets people create and use apps without needing central power. It uses a blockchain system to keep track of all deals and to run smart contracts. Smart contracts are like automatic deals with rules written in computer code. 

Ether (ETH) is the cryptocurrency used in Ethereum. People pay with Ether to make deals and use services on Ethereum.

Ethereum has a language called Solidity. This language lets programmers write complex codes to solve various problems. 

DeFi, decentralized financial services on the blockchain without intermediaries, runs on Ethereum. DeFi aims to take the place of usual banks and money services with ones that don't have central control.

Ethereum is also changing the way it checks transactions. It's moving from a system that uses a lot of energy to one that uses much less. This new system is called proof-of-stake (PoS), and it should help Ethereum work faster and on a larger scale.

Many people who create things on Ethereum form a strong community. They have made networks like ERC-20 for swapping tokens and ERC-721 for unique tokens. These rules help make all sorts of things, from digital art to new ways to handle money.

Vitalik Buterin, a programmer, came up with the idea for Ethereum in 2013. His idea was to use the technology behind cryptocurrency for all kinds of apps that don't rely on one central point of control. A group of developers helped turn his idea into a real thing. They launched the Ethereum network on July 30, 2015.

Buterin's goal was to use blockchain, the tech behind digital currencies like Bitcoin, for more than just money. Blockchain is like a digital ledger that keeps records safe and secure. He wanted Ethereum to be a place where any app could run without being controlled by one company or person.

Ethereum's technology is based on a few components: Smart Contracts, the Ethereum Virtual Machine (EVM), and gas.

Smart contracts are self-executing agreements with terms written in code. They automatically enforce and execute these terms when predefined conditions are met.

On Ethereum, smart contracts are written in high-level languages like Solidity and Vyper. Once deployed, they become immutable and accessible to anyone on the network.

These contracts enable various decentralized applications (dApps), such as financial services, decentralized exchanges, and digital identity systems.

For example, if you want to rent a car, a smart contract can handle it. Once you pay, the contract lets you use the car. When you're done, it returns your deposit. All this happens without a rental agent. 

The Ethereum Virtual Machine (EVM) is where smart contracts run on Ethereum. Each node in the network runs its own EVM instance, ensuring consensus on contract execution outcomes.

The EVM is Turing-complete, enabling complex decentralized applications (dApps). Smart contracts are compiled into bytecode, which the EVM executes according to Ethereum's rules.

In essence, the EVM allows developers to create dApps through smart contracts, enabling trustless and transparent systems across various industries.

Ethereum gas is the cost you pay to make transactions or use smart contracts on the Ethereum blockchain.

• In Ethereum, “gas” measures the work needed to do things like send transactions, save data, or use apps. Each action costs a certain amount of gas, based on its complexity.
  
• The total fee for an action is the gas needed times the gas price, in gwei (a one billionth of an Ether).
  
• You can choose what you're willing to pay for gas. Paying more means validators who process transactions may pick yours first.
  
• Transactions have a gas limit, which is the most gas you'll use. This stops actions from getting too complex and expensive. You get the extra back if you don't use all your gas.
  
• Gas fees also keep the network safe from spam. They make it costly for someone to overload the network with too many actions.
  
• Blocks of transactions have a gas limit, too. This controls how many transactions fit in a block, keeping the network running well. 

Ethereum 2.0 is a series of updates to fix issues with the original Ethereum network. These issues include limited capacity, slow speeds, and problems with the old “Proof of Work” system.

The updates of Ethereum 2.0 came in stages over two years. This gradual approach made sure everything transitioned smoothly. There were three big steps in this process from 2020 to 2023:

• The first step was the Beacon Chain. It started in 2020 and worked alongside the main Ethereum network for two years.
  
• The second step was to add shard chains. These helped handle more data and made transactions faster.
  
• The final step was the Merge. This is when the Beacon Chain and the main Ethereum network joined together to become one.
  

With the Merge, the old way Ethereum confirmed transactions, called Proof of Work, was replaced. Now, the whole Ethereum network uses Proof of Stake. This new method is different and is meant to be better for the environment. 

Even though Proof of Stake started with the Merge, people who stake their Ethereum into the system to help it run couldn't get their money back. They had to wait until April 2023. 

That's when another update called the Shanghai Upgrade happened. This smaller update was the final step. It let these people take their money out if they wanted to. 

Ethereum uses several layers of protection to fight off dangers and attacks. Here are the main things that keep Ethereum secure:

Proof of Stake (PoS)

Ethereum has changed its consensus mechanism from Proof of Work (PoW) to Proof of Stake (PoS) with its update, Ethereum 2.0. In PoS, we now have validators instead of miners. These validators are chosen based on how much of the currency they have and are ready to lock away as security. This new method uses less energy and is safer. It makes it too costly for anyone to attack the network.

Validator Rewards and Penalties

Validators earn rewards for correctly approving and adding new blocks of transactions. They must be honest to get these rewards. If they act badly, like approving wrong blocks or cheating, they lose some of the Ether they have put into the system. This loss is called “slashing.” 

Decentralization

Ethereum is designed to be very decentralized. This means it's hard for just one person or group to take control or harm the network. Since the system is spread out, it doesn't have a single weak spot that could fail.

Ethereum Improvement Proposals (EIPs)

Ethereum Improvement Proposals, or EIPs, are a formal way to suggest changes to the Ethereum network. They help to make sure any updates are safe and well thought out. The community and key developers talk about, review, and test these ideas before they happen. This careful approach stops harmful or unsafe changes.

Layer 2 Solutions

Layer 2 solutions, like rollups and state channels, work outside the main Ethereum blockchain. They handle transactions separately and then update the main blockchain with the final results. These methods are great because they make the main blockchain less crowded, cut down on fees, and improve security. They do this by managing transactions more effectively and taking some of the work off the main blockchain.

Regular Security Updates

The team behind Ethereum often makes changes to make it safer and work better. They first try these changes on a practice network. This is to make sure everything works fine before using them on the main network.

Network Layer Security

Ethereum nodes communicate over the peer-to-peer (P2P) network using the DevP2P protocol. Measures such as data encryption, message integrity checks, and peer reputation systems help secure the network layer against various attacks, such as man-in-the-middle (MITM) and denial-of-service (DoS) attacks.

Community and Ecosystem Vigilance

The Ethereum community is made up of developers, researchers, and regular users who all watch out for security risks. They have a program that pays ethical hackers to find and report security problems. This program is called a “bug bounty.” When someone finds a problem, they get a reward.

Staking Ethereum requires depositing 32 ETH to start validator software. This lets you validate transactions and improve network security. Validators store data, process transactions, and earn rewards. Staking uses a proof-of-stake system to secure Ethereum, replacing proof-of-work. To understand more, you can learn about what staking crypto is and how it works, so stakers can earn ETH rewards.

To buy Ethereum, first, pick a trusted crypto exchange like Coinbase or Binance. Sign up and give them your ID to prove who you are. Put money into your account by bank transfer, card, or other ways that they provide.

Look for Ethereum on the exchange and decide how much you want. Buy it and they'll put it in your exchange wallet. For safety, move your Ethereum to your own wallet.

Selling your Ethereum is easy. You can do it through online exchanges, meeting buyers directly, or even at special ATMs. Here's how to sell on an exchange:

• First, pick an exchange you like and create an account. You'll need to prove who you are, so have some ID ready, unless you are using decentralized platform like Phantom or MetaMask.
• Next, move your Ethereum into your new exchange wallet. Now you're ready to sell.
• When you want to sell, you have two choices. You can pick a price and wait for someone to buy at that price. That's a “limit order.” Or, you can sell right away at the current price. That's a “market order.”
• Once your Ethereum is sold, you can send the money to your bank. Or, leave it in the exchange for more trading. Remember, exchanges charge fees and might take time to send your money, so check that before you start.

Hardware and software wallets are common tools to store and manage ETH. Bellow, we discuss what are hardware and software wallets in detail.

Hardware wallets are physical devices designed specifically for storing cryptocurrencies securely offline. Examples include Ledger Nano S, Ledger Nano X, and Trezor. These wallets generate and store private keys offline. They provide a high level of security and keep the keys away from internet-connected devices. 

They typically feature a small screen and buttons for transaction verification. Hardware wallets are one of the safest options for the long-term storage of cryptocurrencies due to their resistance to hacking and malware attacks.

Software wallets are applications or programs that run on computers, smartphones, or tablets. Examples include MetaMask (browser extension), Trust Wallet (mobile app), and MyEtherWallet (web-based). Software wallets can be further categorized into hot wallets (connected to the internet) and cold wallets (offline). 

While hot wallets offer convenience and accessibility for frequent transactions, they may be more vulnerable to hacking and malware attacks than cold wallets. However, they are still considered secure for storing smaller amounts of cryptocurrency for short periods.

Ethereum has big plans to be faster, safer, and work better. These changes are coming after a big update called Ethereum 2.0, or The Merge.

Here's what's coming next:

The Surge

The Ethereum upgrade aims to handle more transactions and still be secure and not controlled by just a few. It will do this by improving Layer 2 solutions, which are like extra layers that help Ethereum work better, and using something called data sharding.

The Verge

The next step for Ethereum will bring in “Verkle trees.” These are a new way to keep track of the Ethereum network's information that is more efficient. Verkle trees make the whole system smaller, which means it's easier for more people to help run the network. When more people can run nodes, the network becomes more spread out and less controlled by just a few.

The Purge

This upgrade is designed to improve the blockchain's performance by eliminating old data and unnecessary complexity. It will simplify the system and reduce the files needed to run it.

The Splurge

This update is a tidy-up step. It includes many small improvements that make sure everything works well together. This keeps our network strong and fast.

When choosing where to trade Ethereum, consider what's important to you. Do you want more control or an easier experience? Do you worry about safety or fees? 

Knowing about CEXs and DEXs can help you make the best choice for trading your cryptocurrencies. 

Ethereum and Bitcoin are both important in cryptocurrency and online systems. They work differently, but both aim to change how we think about money and the internet. 

Purpose

Ethereum's primary purpose is to provide a decentralized platform for developers to build and deploy smart contracts and dApps. It enables a wide range of applications beyond simple transactions. 

Bitcoin, on the other hand, is primarily designed as a digital currency and store of value. It aims to provide decentralized peer-to-peer transactions without the need for third parts.

Consensus Mechanism

Ethereum is transitioning from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) mechanism. It is more energy-efficient and allows scalability improvements. 

Bitcoin, however, operates on a proof-of-work consensus mechanism, which requires big amounts of power and energy consumption for mining.

Native Cryptocurrency

Ether is the digital currency used on the Ethereum network. It pays for transactions and running smart contracts, which are like automated programs. Think of Ether as the fuel that keeps Ethereum running.

BTC is another digital currency, but it's for the Bitcoin network. People use BTC to buy things and as a way to save money, hoping it keeps or increases its value.

Supply Limit

Ethereum does not have a maximum number of coins. Instead, it has a set rate at which new coins are made. This means that there's a steady flow of new Ethereum coins coming into existence.

Bitcoin, on the other hand, is like a pie with only 21 million slices. Once all the slices are gone, there can't be any more. This makes Bitcoin a rare item that might become more valuable over time because there's a limit on how many exist.

Programmable

Ethereum allows people to write code that creates smart contracts and decentralized apps (dApps). These are programs that run on Ethereum's platform. It is mainly used as a digital form of money.

Use Cases

Ethereum is like a multi-tool for the online world. It can handle smart contracts, which are like automatic agreements. It also powers DeFi, which is like a bank without the actual bank. Ethereum is behind NFTs, (and NFTs can be described as unique digital collectibles).

On the other hand, Bitcoin is simpler. It's mainly used for sending coins directly from one person to another. People also see it as a way to save money, like digital gold.

Energy Efficiency

Ethereum has changed its system to proof of stake (PoS). This change makes it use less energy. Right now, Bitcoin uses a lot of energy because it uses a system called proof of work (PoW) for mining.