Ethereum is nothing but a blockchain network that enables developers to build and deploy a decentralized platform. It is an open software application which is without any possibility of fraud or third-party interference or censorship. The applications run on a custom built blockchain which is astronomically shared as global infrastructure that can represent the ownership of property. Ethereum essentially enables multiple new and extremely innovative cryptocurrencies to exist
Ethereum Virtual Machine:
Before the Ethereum came into existence, the blockchain application was basically designed to perform a very limited set of operations. It was created solely to operate digital currencies due to which developers had to confront a problem which was time-consuming, and perplexing. Thus, Ethereum was created by VitalikButerin with an innovative approach. The Ethereum Virtual Machine (EVM) is a Turing-complete software which works on the Ethereum Network. The Ethereum Virtual Machine was created for blockchain applications which made things easier and more efficient than before.
History of Ethereum:
- In 2011, VitalikButerin, a Russian-Canadian boy of 17 years, learned about Bitcoin from his father.
- In 2013, Buterin published a white-paper initiating Ethereum, as many developers from worldwide showed a positive approach to programming.
- In 2014, Buterin decided to quit the University of Waterloo after getting Theil Fellowship of $100,000 to work with Ethereum full-time.
- In 2015, Ethereum went live.
- In 2017, The cap rate of Ethereum was raised up to $36 billion dollars.
Ethereum white paper:
The Ethereum white paper describes the list of benefits which Ethereum offers and the shortcomings of Bitcoin which it addresses. There are many decentralized apps which run on the Ethereum network. DApps can utilize Ethereum’s blockchain instead of creating their own blockchain.
The list of features which Ethereum offers is as follows:
- Financial Derivatives
- File Storage
- Cloud Computing
- Insurance
- Centralized Autonomous Organizations
- Data Feeds
- Token System
Advantages of Ethereum
- Immutability – Changes in the data cannot be caused by the third party
- No Corruption-Apps are developed based on a network as per the rule of consensus.
- Secure-Cryptography is used for secure transactions with no central spot of failure. Thus, the application is safe from hacking and fraudulent actions.
- Zero downtime– Apps are never offline and they never break down.
Buterin’s goal was to introduce a cryptocurrency that was more efficient than Bitcoin. This could be only achieved by an established and computational universal programming language into the Ethereum blockchain. He was successful in achieving this.