Don’t fret. We’ve compiled a FAQ for you below—dive in and explore.
Ethereum is more than just a simple cryptocurrency. One can think of Ethereum as a decentralized, global supercomputer that rents out its resources for developers around the world to create their own dApps (decentralized applications).
As of now, Ethereum uses the proof-of-work consensus mechanism. As such, miners with specialized mining equipment use their computational power to solve cryptographically hard problems and add blocks to the blockchain to earn rewards. However, Ethereum will move onto the proof-of-stake (PoS) algo soon. You can read more about that here.
Vitalik Buterin, a Russian-Canadian programming prodigy, is the brains behind Ethereum. The Ethereum Foundation is a non-profit organization dedicated to supporting Ethereum and related technologies.
Etheruem, like all cryptocurrencies, utilizes a blockchain network. A blockchain is a public, decentralized, and distributed ledger that records and verifies all transactions.
At the core of Ethereum’s mechanics lies the gas system. Every single thing in Ethereum runs on gas. Every time you do a transaction or execute a smart contract, you will need to pay the system for using its resources. This payment is also known as “gas fees.” The miners earn these gas fees in exchange for their services.
EIP stands for Ethereum Improvement Proposal. EIP stands for Ethereum Improvement Proposal, which are changes to the platform proposed by a community member. If the proposal gets the requisite amount of votes, it gets implemented. One of the more controversial EIPs is the EIP-1559. You can read more about it here.
Most recent update: October 22, 2021
This overview provides a summary of certain risks involved trading any crypto asset and is not exhaustive. Investors are encouraged to conduct their own research prior to trading any crypto asset.
No securities regulatory authority has expressed an opinion about the Crypto Contracts or Ethereum, made available on the CoinSmart Platform, including an opinion that Ethereum is not itself a security and/or derivative. Changes to applicable law may adversely affect the use, transfer, exchange or value of your crypto assets and such changes may be sudden and without notice.
Prior to listing Ethereum on the CoinSmart Platform, Simply Digital Technologies Inc. (SDT) conducted due diligence and determined that Ethereum is unlikely to be a security or derivative under Canadian securities legislation. Our analysis including reviewing publicly available information concerning:
Like all crypto assets, there are general risks associated with Ethereum including: volatility risk, liquidity risk, short history risk, demand risk, forking risk, code defects, regulatory risk, electronic trading risk and cyber security risk. For additional information of general risks associated with crypto assets, you may refer to the Risk Statement. Further, developers of Ethereum continues to implement significant changes to the blockchain, including a change planned for 2022 that will transition the Ethereum blockchain’s consensus mechanism from “proof-of-stake” to “proof-of-work”. As open-source software, it is not clear how these changes will impact the future value of ether.
As a reminder, this Crypto Asset Statement is not intended to be exhaustive of all risks associated with trading Ethereum and we encourage you to conduct your own due diligence to determine whether trading Ethereum is right for you.
SDT is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re Simply Digital Technologies Inc. dated October 22, 2021 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada, do not apply in respect of the Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.