ETH, which stands for Ethereum, is the second-most valuable cryptocurrency after Bitcoin. At its core, Ethereum is a decentralized global software platform powered by blockchain technology. Think of a blockchain as a series of transactions all connected to the same public ledger. Anyone can see that the transaction was made, legitimizing the exchange.
Cryptocurrency is Digital Currency
Currency only works if it is backed by the faith that the people who transact in any one particular form of currency agree on the exchange. In some places in the world, even massive boulders have been used to mark transactions. Many online communities of creators already use some form of point system to exchange for prizes or services such as Twitch’s channel points system.
Even since the days of GaiaOnline, DeviantArt, and the early creative sphere of the Internet, such currency exchanges have existed. By tying cryptocurrency to these systems of exchange, entire metaverse economies can be created tied into the value of any particular cryptocurrency. By tying these point systems to a digital value, a path towards wealth accumulation becomes possible for people in these online communities.
Is Cryptocurrency is Energy-Intensive?
It is true that many energy-intensive ways of mining cryptocurrency often take a considerable amount of electrical energy to produce the proof-of-work needed to generate cryptocurrency. Bitcoin makes up for the lion’s share of this energy-intensive method of mining, which accounts for its significantly larger value than most other cryptocurrency which pales in comparison. If BTC (Bitcoin) is like digital gold, then ETH (Ethereum) is much like digital silver. As of September 2022, Ethereum underwent an event known as “The Merge,” a longtime goal of the platform to minimize the environmental impact of crypto mining by switching from a “proof-of-work” system to a “proof-of-stake” system. Transactions made on the ETH blockchain have a much less harmful impact on the environment. Now the platform grows by allowing stakeholders to invest their money in the platform much like how many US companies have stakeholders on Wall St.
Is Cryptocurrency a Scam?
As with every new iteration of financial evolution, there will always be opportunists looking to make a quick buck. This is nothing new. Like any resource it is always monopolized by those eager to get to it first. As different governments across the world realize the global impact of cryptocurrency, new laws and legislations will be made to protect those who deal in it. Of course, there are also those who would use cryptocurrency to their own ends. As with any venture involving risk and investment, it is always advised to be self-aware and make smart choices. At Insurgent Owl Productions we are dedicated to educating creators on the ins and outs of cryptocurrency to protect themselves, their assets, and creative integrity.
Why Choose Ethereum?
During the initial growth and development of ETH, many subsidiary cryptocurrencies which have been minted on the ETH blockchain have primarily been dedicated to new developments in the gaming industry. The use of point-systems and in-game currency ties in directly with the concept of digital money. Many of the companies using the ETH blockchain to develop their own in-game economies find success by developing communities of users all engaged in a community based economy. We have chosen ETH as our cryptocurrency of choice because of this incredibly large and diverse network of creators, developers, and gaming entrepreneurs.