Something crazy just happened with crypto, especially ethereum

Something crazy just happened with crypto, especially ethereum - Dr Boyce Watkins

Ethereum had a rough month and there is more happening in the world of crypto right now.

According to CNBC:

Ethereum dropped 13% in September, the second-worst month for the cryptocurrency in the past year.
The ethereum blockchain has suffered a series of setbacks of late, including an unexpected split because of a bug.
“This is a reminder that blockchains in general and ethereum specifically are new and disruptive technologies,” said Matt Hougan, chief investment officer at Bitwise Asset Management.

When the software programs don’t talk to one another, it creates problems for the network.

Bitcoin takes a very different approach. It relies on a highly secure software program for nodes to access the blockchain. Bitcoin developers have long sought to avoid hard forks at all costs, so all changes in the core software tend to be opt in rather than pushed out to users, according to Carter.

“Ethereum prioritizes faster development, but that comes at the cost of a more fragile set of software implementations,” Carter said.

Some crypto experts attribute ethereum’s success to its first-mover advantage. Most NFTs and 78% of DeFi apps, or dApps, run on ethereum, according to the website State of The Dapps.

That’s starting to change, thanks to the growing popularity of rival blockchains.

Even before this latest split in the blockchain, users were complaining about ethereum’s heavy congestion and high transaction fees, which touched a record of $70 earlier this year, and just this week, bounced from $20 to $46 and back down to $32.

Here's the Forbes definition of Ethereum and how Ethereum works:

Ethereum is often referred to as the second most popular cryptocurrency, after Bitcoin. But unlike Bitcoin—and most other virtual currencies—Ethereum is intended to be much more than simply a medium of exchange or a store of value. Instead, Ethereum calls itself a decentralized computing network built on blockchain technology. Let’s unpack what that means.

How Does Ethereum Work?
Like all cryptocurrencies, Ethereum works on the basis of a blockchain network. A blockchain is a decentralized, distributed public ledger where all transactions are verified and recorded.

It’s distributed in the sense that everyone participating in the Ethereum network holds an identical copy of this ledger, letting them see all past transactions. It’s decentralized in that the network isn’t operated or managed by any centralized entity—instead, it’s managed by all of the distributed ledger holders.

Blockchain transactions use cryptography to keep the network secure and verify transactions. People use computers to “mine,” or solve complex mathematical equations that confirm each transaction on the network and add new blocks to the blockchain that is at the heart of the system. Participants are rewarded with cryptocurrency tokens. For the Ethereum system, these tokens are called Ether (ETH).

Ether can be used to buy and sell goods and services, like Bitcoin. It’s also seen rapid gains in price over recent years, making it a de-facto speculative investment. But what’s unique about Ethereum is that users can build applications that “run” on the blockchain like software “runs” on a computer. These applications can store and transfer personal data or handle complex financial transactions.

“Ethereum is different from Bitcoin in that the network can perform computations as part of the mining process,” says Ken Fromm, director of education and development at the Enterprise Ethereum Alliance. “This basic computational capability turns a store of value and medium of exchange into a decentralized global computing engine and openly verifiable data store.”

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