These are self-executing contracts with the terms of the agreement directly written into lines of code. They run on the blockchain, so they are transparent, immutable, and don’t require a third party to enforce the terms. Users pay a network fee, known as gas, in Ether to execute these smart contracts and other transactions. Any asset, such as equities, bonds, and real estate, can be represented on Ethereum through tokenization. Today, the largest category of tokenized assets are stablecoins, which are tokens that are pegged to the value of another asset such as the US dollar.
- Our asset management capabilities include mutual funds, ETFs, SMAs, model portfolios, indexing and insurance solutions, and more.
- But instead of being controlled by one company or person, it’s run by many people all over the world.
- This is made possible through a transparent and physically backed structure with institutional grade security.
- Ethereum consistently handles the majority of global stablecoin transfer volume, anchoring its role as crypto’s liquidity layer.
What is Ethereum?
Smart contracts are self-executing, with their agreement terms enforced through the blockchain. They’re used to execute agreements between parties, ensuring that these agreements are transparent, secure, and tamper-proof — without the need for an intermediary. Ethereum is a decentralized, open source, and distributed computing platform that enables the creation of smart contracts and decentralized applications, also known as dapps. Ethereum aims to support a global, open digital economy where financial services and applications are accessible without centralized control. Stablecoins are integrated across DeFi protocols, used as base pairs for decentralized exchanges, and underpin on-chain credit markets. They’re not only essential to crypto-native use cases – they also serve people in inflationary economies, enabling access to dollar-denominated assets without bank accounts.
Staked ETPs
After a successful initial coin offering (ICO) in 2014, the Ethereum blockchain officially launched in 2015. Companies transacting on the blockchain are required to manage a user’s account (or “wallet”) which is accessed via cryptographic keys. Mismanagement, theft, or loss of the keys can adversely affect the companies operations on the blockchain. A self-executing program with the agreement terms written directly into code and automatically enforced and executed when the conditions are met. These contracts run on the Ethereum blockchain, providing transparency and security and eliminating the need for intermediaries in some cases. Thousands of nodes (participant computers) run Ethereum software and validate transactions on the network.
Asset Class
Discovery of flaws in or exploitations of the source code that allow malicious actors to take https://consultmanagerx.com/ or create money in contravention of known network rules has occurred. The further development and acceptance of the Ethereum network, which is part of a new and rapidly changing industry, is subject to a variety of factors that are difficult to evaluate. The slowing, stopping or reversing of the development or acceptance of the network may adversely affect the price of ether and therefore an investment in the Shares. Ether has historically exhibited high price volatility relative to more traditional asset classes, which may be due to speculation regarding potential future appreciation in value.
Ethereum continues to anchor DeFi’s capital base, with billions in real-world and native assets locked across its ecosystem. Ethereum offers transparency, programmability, and global accessibility. It is becoming the trust layer where traditional finance meets open infrastructure.
A type of cryptocurrency that’s pegged to another asset like the US dollar or gold to maintain a stable value. A digital container that holds a list of transactions and other important data, such as timestamps and references to the previous block. The general purpose blockchain, the first of its kind, can process and execute code of arbitrary complexity. Please note that the availability of the products and services on the Crypto.com App is subject to jurisdictional limitations. Crypto.com may not offer certain products, features and/or services on the Crypto.com App in certain jurisdictions due to potential or actual regulatory restrictions.
Artists, musicians, and creators used the blockchain to sell, license, and remix digital work in ways never before possible. If Ethereum is a decentralized economy, stablecoins are its cash. Ethereum continues to host the majority of global stablecoin volume, enabling everything from cross-border payments to on-chain savings.
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