Ethereum Review | What is Ethereum?

Bitcoin is considered as the king of cryptocurrencies but Ethereum is considered as the queen of cryptocurrencies.

 A person must have complete knowledge of his cryptocurrencies, especially the top ones in the current market. Hence, read further to know more about this interesting cryptocurrency – Ether and the blockchain platform – Ethereum.

What exactly is the Ethereum and what is meant by Ether?

Ethereum, can be defined as follows –

“It is an open-source, public, blockchain-based distributed computing platform and operating system featuring smart contract (scripting) functionality.”
Basically, it supports a modified version of Nakamoto consensus via transaction-based state transitions.

Whereas, Ether can be defined as follows –

“Ether is a cryptocurrency whose blockchain is generated by this platform.”
It’s also known as ETH, which can be transferred between accounts and used to compensate participant mining nodes for computations performed. ETH basically runs the Ethereum network.

This platform gives safe and secure experience since it doesn’t allow any hacking, tempering or alteration of the code written. This is done basically through the cryptography.
Also, just like Bitcoin, Ethereum also a decentralised programmable blockchain technology.

The Ethereum website says the following in support of the statements about decentralisation and security –

“It is a decentralized platform for applications that run exactly as programmed without any chance of fraud, censorship, or third-party interference.”

Basically, we can say that, “It is the network based on the blockchain technology and Ether is the cryptocurrency which helps in running the platform.”

It is also known as the programmable money. This is basically due to two main reasons –

  • It allows you to build and execute smart contracts as well as Distributed Autonomous Applications (DApps), without censorship, downtime, or any third party.
  • The inbuilt programming language Solidity is used to write smart contracts as well as DApps. After that, the cryptocurrency asset (Ether) helps in executing these apps and contracts.

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History of Ethereum –

Basically, it was created mainly for it to do stuffs which were normally not done by bitcoin.
Hence, one of the programmers of the famous Bitcoin Magazine, Vitalik Buterin, had argued that Bitcoin needed a scripting language for application development.
Failing to gain agreement, Vitalik proposed development of a new platform with a more general scripting language and thus created the decentralised platform called Ethereum in late 2013.

Ethereum was officially announced in the month of January, 2014. The announcement was made at the North American Bitcoin Conference in Miami, USA. The core Ethereum team consisted of Vitalik Buterin, Mihai Alisie, Anthony Di Iorio, and Charles Hoskinson
The Russian programmer was later joined in the month of July, by Dr Gavin Wood, who is now the co-founder as well.

Formal development of the Ethereum software project began in early 2014 through a Swiss company, Ethereum Switzerland GmbH (EthSuisse). Eventually, a Swiss non-profit foundation, the Ethereum Foundation (Stiftung Ethereum), was created as well. It raised $18 million in presale of Ether tokens.

ethereum

The Team of Ethereum –

Ethereum is basically an effort to code, run, and execute smart contracts and DApps independently without human interaction. But it did require a good team to make it possible. The current team includes –

  • Vitalik Buterin (CEO) – Through Bitcoin in 2011, Vitalik discovered cryptocurrencies and blockchain technologies. Also, he came up with the Bitcoin Magazine in 2012 out of his curiosity to understand Bitcoin. After getting the Theil Fellowship in 2014, he dropped out of the University of Waterloo to work on Ethereum full-time. Vitalik understood what blockchain technology had to offer for the future, hence in 2013, he invented Ethereum.
  • Gavin Wood (CTO) – In 2014, Gavin met Vitalik through a mutual friend and got to know about Ethereum. He invented the smart contract language called Solidity. He also wrote the first yellow paper on the Ethereum blockchain; for the Ethereum Virtual Machine (EVM).
  • Jeffery Wilcke – Since its inception, Jeffery has been looking after the implementation of the Go programming language on Ethereum.
  • Ming Chan – Ming serves as the executive director of Ethereum; and looks out for regulatory as well as legal matters of the Ethereum blockchain.

Mining of Ether and Number of Ether produced –

The Ether makes sure to keep the Ethereum blockchain platform which tends to be an incentive to the miners. The Ether can be mined using CPU & GPU Mining, which is done through the mining blocks on the Ethereum platform.

“The Ether supply is limited to 18 million per year. Every 12-14 seconds, a new Ethereum block is mined, and a reward of 5 Ether is given to the computer who mined it.”

Ether (ETH) will be issued at a constant annual linear rate through the block mining process. Also, this rate is said to be 0.3 times the total annual amount of ETH created in the pre-sale.

60,102,216 Ether was created in the presale,

Thus, 0.3 times 60,102,216 equals 18,030,664.8

So, this results in approximately 18 million Ether per year.

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Navaneetha Suresh

Navaneetha Suresh

Navaneetha, commonly known as "nav", loves to read, play badminton, play the keyboard and sing but when she's not doing any of those, she loves to write. What started as a high school hobby to write is now her ongoing passion.

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