What is Ethereum (Ethereum) in simple words?

Ethereum (Ethereum, ether) is both a cryptocurrency and a decentralized functional environment, which truly revolutionized the entire IT sector.

The creators of the air, among which stands out the acne Buterin when you run this platform pursued a standard for authors of cryptocurrencies goal of improving Bitcoin. However, the air can hardly be called bitcoin 2.0. They are somewhat similar, but between them there are some conceptual differences.

This little where talking about, but the cryptocurrency boom 2016-2017 year associated with the launch and promotion of Ethereum. The new environment allowed us to maximize the potential of the blockchain in the FINTECH sector and gave impetus to launch new startups and projects, which in turn attracted huge investments.
ETH tightly captured the status of the second most popular cryptocurrency in the world and the most revolutionary. In this article we will talk about the features of Ethereum understandable to the General reader the language, without delving into technical details.

What is Ethereum

If you stick to the dogmatic terminology, Ethereum is a platform for the creation and operation of decentralized applications on the blockchain with smart contracts.

The currency of the platform is the ether or aether. Abbreviation – ETH. Esters are used not only as units of account. They also guarantee the performance of smart contracts, playing the role of such a “fuel” for the network.

History Ethereum

The founder and chief mastermind behind Ethereum is a canadian developer of Russian origin, Vitaly Buterin. He became interested in the cryptocurrency back in 2011-m to year, some time publishing a journal Bitcoin Magazine. Then he tightly examines the programming and think about the creation of an enhanced platform, running on the blockchain.

Here’s how he remembers Buterin:

“The idea to create an Ethereum did not come immediately. At first I tried to push it into the project, which worked. But I was told that it takes a year to implement. Then I quit. I remember walking around San Francisco, thinking, and then he went and wrote a white paper that is sent to my friends, and they his. So it all began”.

Went 2013. Already in 2014 we have started collecting funds for the development of the platform through crowdfunding. ICO Ethereum raised 31 191 BTC (over $ 18 million), and the project has also attracted banks and financial institutions. The launch of the platform took place in July 2015. However, she fully earned only in March 2016 with the release of the minutes of the Homestead.

What was created by Ethereum?

Ethereum gave brand new possibilities in creating decentralized projects and startups based on the blockchain and smart contracts. One of these startups was The DAO. It is a platform to find projects for investment, built on a smart title search. ICO The DAO became one of the most successful in history. Over time, crowdfunding has managed to collect 150 000 000 dollars of investments. However, due to errors in source code of the funds (60 million) was stolen.

To return the stolen funds, it was proposed to roll back your network by hard forks. This would allow to make a backup of the blockchain to the starting state before the theft with The DAO. Full consensus in a network was not achieved, therefore, in parallel with Ethereum Ethereum appeared Classic version of “to roll.” Despite the fact that hardwork allowed to recover the stolen investment, it has criticized, as have been violated one of the main principles of the blockchain – the irreversibility of transactions.

The launch of Ethereum seriously revived the whole cryptocurrency world, showing the universality and flexibility of the blockchain. The authors have implemented a platform environment with the easy tools in which to create a startup or the application of the decentralized nature of man can, without serious technical training. For example, the source code of the cryptocurrency Namecoin is only 5 lines. So Ethereum is possible to call the adapted framework, in which all development is based on the clever title search.