Understanding ETH Network Coins: A Comprehensive Guide
Are you intrigued by the world of cryptocurrencies and looking to delve deeper into the Ethereum network coins? Well, you’ve come to the right place. In this detailed guide, we will explore the various aspects of ETH network coins, including their history, functionality, and future prospects. So, let’s dive in and uncover the fascinating world of Ethereum network coins.
History of Ethereum Network Coins
Ethereum network coins, commonly known as ETH, were introduced in 2015 by Vitalik Buterin, a Russian-Canadian programmer. The concept of Ethereum was born out of the need for a decentralized platform that could support smart contracts and decentralized applications (DApps). Since its inception, ETH has gained immense popularity and has become one of the leading cryptocurrencies in the market.
Functionality of ETH Network Coins
ETH network coins serve multiple purposes within the Ethereum ecosystem. Let’s take a closer look at their functionalities:
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Transaction Fees: ETH is used to pay transaction fees on the Ethereum network. When you send or receive ETH, you need to pay a small fee to the network to process the transaction. This fee is known as a gas fee.
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Smart Contracts: ETH is the native currency of the Ethereum network, which enables the execution of smart contracts. Smart contracts are self-executing contracts with the terms of the agreement directly written into lines of code. They automatically enforce and execute the terms of an agreement, eliminating the need for intermediaries.
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Decentralized Applications (DApps): ETH is used to pay for services and transactions within DApps. DApps are applications that run on a decentralized network, and they rely on ETH for their operations.
Supply and Distribution of ETH Network Coins
The total supply of ETH network coins is capped at 18 million coins. The distribution of these coins is as follows:
| Year | Coins Distributed | Percentage |
|---|---|---|
| 2015 | 12 million | 66.67% |
| 2016 | 1.5 million | 8.33% |
| 2017 | 1.5 million | 8.33% |
| 2018 | 1.5 million | 8.33% |
| 2019 | 1.5 million | 8.33% |
| 2020 | 1.5 million | 8.33% |
| 2021 | 1.5 million | 8.33% |
| 2022 | 1.5 million | 8.33% |
| 2023 | 1.5 million | 8.33% |
As you can see, the distribution of ETH network coins is relatively evenly spread across the years. This ensures a steady supply of coins and prevents inflation.
Market Performance of ETH Network Coins
The market performance of ETH network coins has been quite volatile over the years. Let’s take a look at some key milestones:
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2015: ETH was launched with an initial value of $0.30.
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2016: ETH reached a high of $13.50.
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2017: ETH experienced a massive bull run, reaching an all-time high of $1,400.
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2018: ETH faced a significant decline, dropping to around $200.