Ethereum Based
Ethereum based refers to any crypto asset that is built upon the Ethereum blockchain. Ethereum, which was founded in 2015 by Vitalik Buterin, is a decentralized public platform that supports smart contracts and other applications. The goal of the project is to create an open-source software platform on which developers can build distributed applications (dApps). Applications are powered by Ether (ETH), a digital asset or token native to the blockchain network.
In addition to being used as currency within its own ecosystem, ETH has also been integrated into many other cryptocurrency projects – some of which have their own tokens or coins with limited utility outside of their respective networks. These assets are typically referred to as “ERC20” tokens because they adhere to a set technical standard called ERC20, allowing them be easily transferred between wallets and exchanged for one another on certain exchanges. Some popular examples include Binance Coin (BNB), Chainlink Token (LINK) and Tether USDT stablecoin – all three of these assets were created using Ethereum’s technology stack and therefore fall under this category of “Ethereum based” cryptocurrencies.
In recent years there has been an explosion in development activity surrounding Ethereum; from new protocols such as layer 2 solutions like Plasma Cash & Optimistic Rollups ,to DeFi initiatives like Uniswap & Compound Finance . This surge in innovation points towards the potential for more interesting use cases for both Ether itself but also those ERC20 tokens running atop it – making it increasingly important investors understand what exactly falls under this umbrella term: “Ethereum Based”.
