A $1 Million Winner Within 2 Years
Ethereum is the brainchild of inventor Vitalik Buterin, created in the year 2013. He theorized the blockchain and was able to become crowd-funded online in part by Microsoft. Microsoft launched Ethereum Blockchain as a service two years later by 2015, and by early 2016 Ethereum reached $1 million capitalizations. Ethereum as a public distributed computing platform, based on the blockchain, features various smart contracts with increased functionality and decentralized virtual mechanisms.
Ethereum is a platform that is intended to allow people to quickly write decentralized applications (dApps) and smart contracts within its blockchain technology. The digit currency discussed later, is used in the platform to pay for requested operations by machines; and also as compensation for the resources contributed to building the applications.
A New Network For All
Ethereum being contained in many decentralized networks has the means to redistribute functions and powers away from a central server. In redistributing features and control, it creates a peer-to-peer platform and has the advantages of high reliability, cross-effectiveness, and no central point of failure. The Blockchain is what is used to help most networks function and is a primary authority within those networks to make final decisions. It helps make different types of agreements across the whole system without any central power.
The Decentralized Autonomous Organization (DAO) was created to function as a venture capital fund built on Ethereum blockchain. The community/network would then be able to propose projects, and then reserve said plans with this newly found currency ether. It was open source coding framework and developed by Slock.it team and deployed by the community members. The total value rose to over $20, or over $250 million.
A New Form Of A Currency?
Ether is the native currency within Ethereum and serves two different but critical purposes: one by requiring applications to pay ether for every operation they perform, and two by ether being given as a reward to those who contribute their resources to the network. What can it be used for though you may be asking? Ethereum can be used for various services that are traditionally centralized but become decentralized through the use of the Ethereum network. Some examples of using Ethereum with technology would be a Washing Machine, and IBM and Samsung are working together. They could program the Washing Machine to be able to do a variety of services such as: ordering its detergent when it runs out, calling its repairman when it breaks, doing the laundry to the cheapest electricity function.
Ethereum is becoming a popular trend for computer programmers and computer companies alike, only because it provides a reward to computers finally for their work. Having Ether makes computer owners maybe wanting to monetize their work, and sell ether for real dollars. Alternatively, in an exchange with computer companies, and other Ethereum developers, need Ether to run their various Ethereum networks and apps, and want to buy some Ether for real dollars.
How Is Ether Created?
Ether is “mined,” just as with Bitcoin and other cryptocurrencies. In the Ethereum’s world, the miner’s regularly decide to increase or decrease, of the blockchain. Also, the tokens can be exchanged and added whenever decentralized applications can run. Since apps and networks are decentralized, there is no single entity having ownership, and many see that as proven benefit compared to Bitcoin.
While Ethereum utilizes a different protocol, it still has performed impressively; and has become very popular among other cryptocurrencies.