It is no secret that many investors are looking for ways to get exposure to Ethereum. One way to do this is to borrow against Ethereum.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.
The Ethereum blockchain is like a computer that anyone can download and use. It has its own virtual currency, Ether, which can be used to pay for transaction fees and services on the network.
Ethereum is different from Bitcoin in that it allows for more complex applications to be built on top of it. These are called smart contracts.
Smart contracts are pieces of code that can be deployed on the Ethereum blockchain and executed by the network of computers that run it. They can be used to create financial instruments, Escrow systems, voting systems, or anything else that can be coded into a contract.
One of the most popular use cases for Ethereum is Initial Coin Offerings (ICOs). ICOs are a way for startUPS to raise capital by selling tokens in exchange for Ether.
The tokens can be used to access the services offered by the startup or tradeable on cryptocurrency exchanges.
ICOs have become very popular in recent months as they offer a way for companies to raise capital without going through the traditional venture capital system. However, they have also been criticized for being unregulated and prone to fraud.
Ethereum is also being used by some large companies as a way to test out blockchain technology without having to build their own infrastructure from scratch. Microsoft, IBM, and JPMorgan Chase are all members of the Enterprise Ethereum Alliance, which is working on developing enterprise-grade software based on Ethereum.
So far, over $1 billion has been raised through ICOs on Ethereum. And as more and more companies explore the use of blockchain technology, it is likely that we will see even more use cases for Ethereum emerge.
So, can you borrow against Ethereum? Yes, you can! There are numerous platforms that allow you to do this including Nexo and Celsius Network. So if you’re looking for a way to get exposure to Ethereum without having to purchase any ETH directly, then borrowing against it is a great option!.