Before you buy Ethereum, there are things you need to know about its production and the blockchain that propels it. While blockchain technology might appear rigid in structure, there is a huge difference in its functions. The consensus mechanism is designed to work as a fault-tolerant mechanism connected to a group of blockchain networks to achieve that single data arrangement.
Regardless of the fact that Bitcoin's price has recorded a significant decline since the start of 2022 as the US Federal Reserve braces to remove stimulus, bulls remain as confident as ever. The world's biggest cryptocurrency by market capitalization has lost about $80 billion since the beginning of 2022, tumbling to its lowest price since the early-December flash crash. However, there have been expectations that it will hit the fabled $100,000 level in 2022, and it has not affected investors who buy and sell Bitcoin in any way.
Ethereum is one of the most powerful blockchain networks and has been a pioneer in the field for so long that most of the popular crypto projects now operate on the Ethereum blockchain or used to. The native coin of Ethereum, ETH, is the second most valued cryptocurrency, with a gain of more than 200 percent in just 2021. However, Ethereum's market share has reportedly plummeted to 70% from 100% in early 2021. This could affect investors' decision to buy Ethereum and its dominance on DeFi. Will a new Ethereum competitor arise, or will the Web 2.0 champion continue to dominate the DeFi field for years to come?
What is the purpose of cryptocurrency? Although this question may sound rhetorical to some, there is more to explain than common knowledge. You will be surprised to understand that most cryptocurrency traders have no idea that these coins are created to serve different purposes. Having said that, let's stick to the question, "what is the purpose of cryptocurrency?" Well, this is what this piece is there to explain. Let's take the decentralized finance coins, for example. They are those financial transactions conducted without using the conventional bank method. Let's demystify this is like doing everything you do with the traditional bank outside the bank itself. When we say, "those things you do", we mean getting loans, investing, insurance, and even credit cards.
