This comprehensive article will equip you with all the Ethereum (ETH) basics, exploring its history and defining features, such as smart contracts, and detailing its many use-cases.
What is Ethereum in NZ?
At the heart of Ethereum is a super computer called the Ethereum Virtual Machine (EVM), Each participant in the network, or Ethereum node, keeps a copy of the EVM’s state.
Ethereum is free to use, accessible to anyone with an internet connection and device, and has no comprehension of international borders; acting as a universal internet currency.
History of Ethereum
In 2013, Vitalik Buterin, a young programmer and blockchain enthusiast, published the Ethereum white paper outlining his vision for a new blockchain platform that could support smart contracts and decentralized applications (dApps).
Buterin proposed a blockchain-based system that would allow developers to build and deploy applications without the need for intermediaries or centralized control.
In 2014, the Ethereum Foundation was established in Switzerland to support the development and adoption of Ethereum. The foundation was funded by a crowd sale of Ether, Ethereum’s native cryptocurrency. Over 31,000 people participated in the crowd sale, which raised over $18 million in Bitcoin.
In July 2015, the Ethereum network launched with the release of its first software, called “Frontier.” The launch was marked by a crowdfunding campaign that raised over $18 million worth of Ether. Ethereum quickly became the second-largest cryptocurrency by market capitalization after Bitcoin.
In 2016, The DAO (the first Decentralized Autonomous Organization) raised over $150m on the Ethereum network in what was one of the largest crowdfunding campaigns of all time.
The DAO was a smart contract-based organization that aimed to be a decentralized venture capital fund. However, a vulnerability in its smart contract led to a hack that resulted in the loss of millions of dollars worth of Ether. Ethereum blockchain was split into two separate networks: Ethereum (ETH) and Ethereum Classic (ETC).
Since then, ETH has undergone several upgrades to improve its scalability, security, and functionality. In 2019, the Ethereum Foundation announced the launch of Ethereum 2.0, a major upgrade that will move the network from a proof-of-work consensus mechanism to a proof-of-stake mechanism, among other changes. The Ethereum 2.0 upgrade took place on 15th of September 2022 and was a huge success.
How Does Ethereum Work in NZ?
What is Ether in NZ?
Ether (ETH) is the native cryptocurrency of the Ethereum network, and it serves several important functions. Firstly, it is the only acceptable form of payment for transaction fees on the network. After the implementation of The Merge, ether will also be required to validate and propose blocks on Mainnet.
Additionally, ether is widely used as collateral in the DeFi lending markets, where users can borrow and lend digital assets. Ether is also used as a unit of account in NFT marketplaces, where users buy and sell non-fungible tokens.
Moreover, ether is increasingly being used as a payment method for various services and real-world goods. In short, ether is a versatile cryptocurrency.
The Ethereum blockchain is a decentralized, distributed ledger that allows for the secure and transparent transfer of digital assets, such as cryptocurrency, without the need for intermediaries. It operates on a global network of computers, or nodes, that work together to maintain and validate the integrity of the network.
The Ethereum blockchain is unique in that it allows developers to build decentralized applications (dApps) on top of the network. These dApps use smart contracts, which are self-executing programs that automatically execute the terms of a contract.
How to Store Ethereum in NZ
Ether is stored in Ethereum wallets – which are free to set up, use and operate. Except for the ETH transaction fees, which are paid to validators.
In traditional online services, accessing your accounts typically involves using your email address and password. However, in the world of cryptocurrency, your wallet access and ownership are represented by a unique public and private key pair.
Private Keys and Public Keys
Acting as your digital identity and signature, every cryptocurrency wallet is distinct by having its own unique public and private key – with each unique key pair being freshly generated whenever a new cryptocurrency wallet is created.
- Private Key: Private keys is the password to your crypto bank account, and it’s required to sign off outbound transactions from your wallet. Never share your private key with anyone, and the security of your wallet rides on how safely you store your private key.
- Public Key: Ethereum public keys are like your crypto bank account number – an address others can use to send you ETH. You can safely send your public key to anyone, knowing they can’t change or open your wallet, but rather use it to send you ETH.
What is proof-of-stake (POS)?
Proof-of-stake is a key concept that underlies certain blockchain consensus mechanisms used to achieve agreement across a network. In traditional proof-of-work systems, miners prove their investment by using up energy. Ethereum, however, uses proof-of-stake where validators stake capital in the form of ETH into a smart contract on the network.
This staked ETH acts as a type of security deposit which can be lost if the validator acts dishonestly or fails to carry out their duties. Validators are responsible for checking that new blocks are valid and occasionally creating new blocks themselves.
This also helps to ensure the security and integrity of Ethereum’s network.
Recommended Ethereum Wallets
⭐Cryptocurrency NZ Recommendation 🏆
Exodus Wallet is a popular crypto wallet that provides a user-friendly interface and supports a wide range of digital assets. It is available for users in NZ and offers a convenient way to store, manage, and exchange cryptocurrencies.
Ledger Wallet is a hardware wallet designed to provide a secure and offline storage solution for cryptocurrencies. It is available for users in New Zealand and offers enhanced security measures to protect digital assets.
Is there a Ethereum Community in NZ?
New Zealand boasts a thriving community of Ethereum and crypto enthusiasts, many of whom gather on popular social platforms like Facebook, Telegram, Reddit and Discord.
These online communities are an excellent source of information for locals.
Check out our comprehensive list of Ethereum and Crypto communities in New Zealand:
- Cryptocurrency NZ Facebook Group – (Highly recommend)
- Cryptocurrency NZ Monthly Meetups – (Last Wednesday of every month)
- Cryptocurrency NZ Discord Group
- NZ P2P Crypto Marketplace – (NZ’s Largest Cryptocurrency P2P marketplace)
Have a community for us to list? Please reach out to us!
How to Buy Ethereum in NZ
Is Ethereum a good Investment in NZ?
At Cryptocurrency NZ we believe Ethereum is more than just a financial investment. Its unique set of characteristics makes it stand out from traditional finance and other cryptocurrencies. ETH’s core value proposition is built around its ability to provide a decentralized and secure platform for decentralized applications and smart contracts.
Ethereum’s emphasis on privacy, freedom, and censorship-resistance also distinguishes it from centralized financial systems. ETH’s blockchain technology also provides a unique opportunity for developers to build innovative solutions.
In a world where centralization is the norm, Ethereum offers a new paradigm for decentralized systems that can change the way we interact with technology.