Ethereum history: how a young programmer made a revolution in the blockchain
Ethereum is the second most popular cryptocurrency in the world. At the same time, it is a platform for creating decentralized blockchain applications using smart contracts.
The history of Ethereum, if we take into account the launch date of the technology, has just over three years. However, in such a short time, it has become one of the key ones on the market.
Ethereum as a cryptocurrency is valued no less than Bitcoin, despite the large difference in cost. Also, enthusiasts of the digital world believe that it was Russian-Canadian development that gave impetus to the development of a cryptocurrency market two years ago.
Ethereum history: inception of an idea
History Ethereum takes its roots in Canada, but directly relates to Russia. Vitalik Buterin is an ideological inspirer, creator and developer of a technology unique in its structure. At the age of 6 he moved with his parents to Canada, where in 2011 he became interested in cryptocurrency.
Studying software engineering, Buterin was simultaneously engaged in the publication of Bitcoin Magazine. Constantly being in the context of modern developments, he thought about creating a new platform for working on the blockchain. The young entrepreneur believed that cryptocurrency is not just a unique type of transaction. He saw greater potential in them.
In 2013, Vitalik Buterin wrote the White Paper of his project. So the story of Ethereum began. In 2014, a crowdfunding campaign was launched to raise funds for development. Thus, it managed to attract more than USD 18 million, which generated interest in Ethereum among banks.
In summer 2015, the launch of the platform took place. However, the Buterin brainchild fully earned only in 2016, when all the beta and alpha versions were patched and the security issues of the service were fixed.
The platform popularized the phenomenon of smart contracts. These are programs, in whose code the fulfillment of a certain condition is prescribed upon reaching certain circumstances, which are also entered into the contract.
Smart contracts, for example, provide an ICO. When an investor transfers a currency to a virtual wallet, the tokens are charged by the program.
The main differences between Ethereum and Bitcoin
Coin Buterin was called “Bitcoin 2.0”. There is some truth in this, because they are somewhat similar to each other. But the differences are even more noticeable.
- Number of coins
Bitcoin production is strictly limited – only 21 million coins will be produced. The “ether” does not have such limits.
- Transaction rate
The faster the creation of a block, the more attractive the cryptocurrency is a simple market rule. Ethereum performs operations in 15 seconds. A similar indicator for Bitcoin is 10 minutes.
Bitcoin was created as a unique type of cash transaction. The purpose of Ethereum is to ensure the operation of its own platform for developing blockchain applications.
How Ethereum changed the market
Ethereum played a key role in the jump in the cryptocurrency environment, which began just in 2016 together with its appearance. Fresh technology has given impetus to the launch of blockchain startups that have managed to attract multimillion-dollar investments.
This, in turn, was reflected in the value of the ETH coin. Now it occupies the top lines of the popular and most expensive cryptocurrency ratings.
The development radically changed the life of the cryptocurrency market by the fact that the creators of the platform showed flexibility, versatility and openness of the blockchain. The project provided an opportunity to launch a decentralized startup to people without special technical knowledge, using available modules.
Ethereum platform features
As already mentioned, the main use of “Ether” is not in its properties as an investment and payment instrument. Ethereum platform is valued for openness to any kind of development on the blockchain. The technology allows you to create programs and applications, and in its essence is a powerful database and computer that processes this data. In addition, the domestic currency Ethereum has not only a calculated function, but also contributes to the fulfillment of the conditions of smart contracts.
The history of Ethereum is an example of creating a revolutionary development based on another breakthrough idea. Having experienced the potential of the blockchain in time, Vitalik Buterin managed to provide a service that contributed to the development of the still inactive market.