Ethereum is a decentralized blockchain platform that enables the execution of smart contracts. Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a trusted third party.
This eliminates counterparty risk that is associated with intermediaries as commonly seen in finance.
Ethereum is a more advanced platform than Bitcoin, and it has the potential to revolutionize many industries, including finance, supply chain management, and voting. Ethereum is still evolving, but it has already gained a large and active community of developersand users.
Here are some of the key features of Ethereum:
Smart contracts: Ethereum allows developers to create and deploy smart contracts, which are self-executing contracts that can be used to automate a wide variety of transactions and agreements.
Decentralization: Ethereum is a decentralized platform, which means that it is not controlled by any single entity. This makes it more secure and resistant to censorship. Some are starting to question this aspect of the network after the switch to proof-of-stake. By implementing coin voting, the early pre-mine and those with founder's stake were given an advantage.
Open source: this is an open source platform, which means that anyone can contribute to its development. This has helped to create a large and active community of developers. Forksare also possible due to the fact the code is available to anyone. This resulted in BSC, Polygon, and Solana being created.
Scalability: Ethereum developers are working on a number of solutions to improve its scalability. This will make it possible to process more transactions per second and support more users.
History
Ethereum was the brainchild of Vitalik Buterin who conceived the idea in 2013. The network as start by him and 7 other co-founders.
They are:
- Charles Hoskinson
- Gavin Wood
- Anthony Di Iorio
- Amir Chetrit
- Jeffrey Wilcke
- Mihai Alisie
- Joe Lubin
It went live on July 13, 2015.
Buterin believed that decentralized applications could benefit from things other than money. Bitcoin was the first blockchain yet it focused on financial transactions. The ledger is similar to that of a bank, recording and maintaining balances as the transactions are processed (and placed into blocks.
This required more robust development. The vision included the eventuality that real world assets such as stocks and real estate could be housed on these decentralized networks.