What springs to mind when you hear the word Ethereum? The second largest cryptocurrency by market cap? Or perhaps the blockchain platform used for developing decentralised apps (‘dapps’)?
Well, you’re certainly on the right track, but Ethereum is actually an entire DeFi ecosystem. Let’s take a look at what it consists of.
What is Ethereum?
First things first, Ethereum is the name of the ecosystem’s programmable blockchain platform (not its native token, which we’ll get to in minute).
But what is a programmable blockchain? It’s basically a blockchain platform that allows for the creation of smart contracts - self-executing contracts with the terms of an agreement written into their code. The presence of smart contracts ensures that different parties are able to transact directly, without a central authority. In other words, they enable peer-to-peer (‘P2P’) transactions.
P2P transactions make doing business faster, more efficient and lower in cost. And they’re not only beneficial for payments.
What can you use Ethereum for?
Anyone can use Ethereum to create their own cryptocurrency, dapp or Decentralised Autonomous Organisation (DAO) - an entity governed by an automatically enforceable set of rules on a blockchain.
One of the most common use cases for Ethereum is the creation of new tokens, most of which are known as ERC-20 tokens (you can find out more about them in this blog post).
NFTs are an increasingly popular use of the Ethereum blockchain, too, ever since the network added support for them as part of its ERC-721 standard. You may be familiar with one of the first uses of it - a game known as CryptoKitties, which lets you collect, breed and sell virtual cats.
What is Ether?
You’ve almost certainly come across ether (ETH) before. Not only is it a tradeable cryptocurrency, it also facilitates operations on the Ethereum network by paying for participants to carry out their work - ETH is sometimes referred to as the network’s “fuel”.
Ether has consistently ranked second largest by market capitalisation after bitcoin.
But could ether be about to take bitcoin’s crown? Its underlying blockchain’s upcoming upgrade, known as Ethereum 2.0, involves transitioning to a much more efficient proof-of-stake consensus mechanism, from its existing proof-of-work method.
An important step along the way was the recent London Hard Fork upgrade, which led some to believe that the value of ETH would increase as a result. So, watch this space…
You can learn more about the differences between proof-of-work and proof-of-stake here.
The Ethereum family
Now you’ve got to know the Ethereum ecosystem, it’s time to put your knowledge to the test.
Let us know which of the below tokens belong to the Ethereum family and you could win a WXT prize!
Leave your answer in the comments section below and if you get it right you could win €/US$20 in WXT - good luck!
Ethereum Game Competition EEA & APAC Terms & Conditions
The following terms and conditions (“Terms”) shall apply to the Ethereum Game Competition (the “Competition”) which is offered by Wirex Ireland Limited in the European Economic Area (“EEA”) and by Wirex Pte Ltd in the Asia Pacific (“APAC”) region (each separately referred to as “Wirex”):
1. This Promotion will run from 10:00 (BST) on 28 October until 23:59 (BST) on the 2 November 2021.
2. This Promotion is open to users of the Wirex Service only (as defined by the applicable Wirex terms & conditions: Wirex | Making currencies equal and available to everyone) resident in the EEA and APAC regions who are members of the Wirex Community Forum (“Eligible Participants”, “you”). For the avoidance of doubt, no other users of the Wirex Service are eligible for this Competition.
3. To qualify for the Competition, you must pick eight (8) tokens that are built using the Ethereum platform and submit your answers in the comment section of the Ethereum Game Competition Post (“Qualifying Task”).
4. Wirex will select the six (6) quickest Eligible Participants who correctly respond to the Competition on the Wirex Community Forum and complete a Qualifying Task as the Winners of this Promotion (the “Winners”, each a “Winner”).
5. The Winners will be contacted by private message from the Wirex Community Team.
6. Once a Winner is contacted by Wirex, to be eligible for the Reward the Winner must respond to the message confirming their Wirex registered email address within 48 hours to claim their prize (“Qualifying Action”).
7. If a Winner does not reply within 48 hours Wirex reserves the right to select another Winner (please note, Wirex will never ask for any other account details via social media message, please do not provide any other information about your account in response to the notification).
If Winners agree in writing they will be announced on the Ethereum Game Competition Post on the Wirex Community Forum.
8. The Reward will be credited to Eligible Participants who complete a Qualifying Task within the Promotion Period (“Qualifying Participants”).
9. The Reward will be paid to Qualifying Participants’ accounts within 30 Working Days of the end of the Promotion Period.
10. Once a Qualifying Participant has received the Reward it can be converted to traditional fiat currency through the Wirex Service at the Qualifying Participants’ discretion.
11. “Reward” means the WXT equivalent to EUR 20 (in the EEA) or USD 20 (in APAC) which will be calculated by an exchange rate set by Wirex from time to time in its absolute discretion. For the avoidance of doubt, the Reward will be distributed in WXT only and each Qualifying Participant will be eligible to receive the Reward only once.
12. “Ethereum Game Competition Post” means the post shared on the Wirex Community Forum which states “Ethereum Game”
13. “EUR” means Euros.
14. “USD” means United States Dollar.
15. “WXT” means the Wirex Token on the Wirex Service.
16. “Wirex Community Team” consists of the following two members of the marketing team who are available to help during the Competition: : @Ali_Wirex and @Chiechien_Wirex.
17. “Wirex Community Forum” means the Wirex community platform which is a space for discussion among Wirex members hosted on the Wirex website: https://community.wirexapp.com/
18. “Working Days” means Monday to Friday, excluding weekends and any public holidays when the banks of England are closed for business.
19. For the avoidance of doubt, the total payable amount is the WXT equivalent to EUR 120 (in the EEA) or USD 120 (in APAC), once Wirex reaches the total payable amount no further Rewards will be awarded.
20. Wirex may, at its sole discretion, revise any of these Terms & Conditions or terminate this Promotion at any time without prior notice to Wirex users, Eligible Participants, the Winner, Winners or other third parties.
21. The Reward amount may be varied at any time without notice to Eligible Participants, Winners or other third parties.
22. Wirex may, at its sole discretion, revise any of these Terms or terminate this Promotion at any time without prior notice to Wirex users, Eligible Participants or other third parties.
23. This Promotion is launched by Wirex independently and there are no partnerships between Wirex and any merchant or other third parties relating to this Promotion.
24. Subject to applicable law, Wirex will not under any circumstances be liable to compensate Wirex users, Eligible Participants or other third parties for any losses or damages occurring as a result of their participation or engagement with this Promotion.
25. Wirex will only process personal information collected or received in connection with the Promotion as set out in its Privacy, Data Use and Retention Policy, which is available on by clicking the following link: Wirex | Making currencies equal and available to everyone.
26. The Terms of this Promotion are governed by the laws of England and the parties irrevocably agree that the courts of England shall have exclusive jurisdiction to hear, settle and/or determine any dispute, controversy or claim (including any non-contractual dispute, controversy or claim) arising out of or in connection with this Promotion.