After the launch of bitcoin in 2009, its block chain was created. This is a type of ledger used to record transaction of the currency type. The introduction of bitcoin caused a great revolution in online commerce. However, there was a desire by many financiers to use bitcoin to achieve more. Therefore, Ethereum was created with a desire to provide more from the blockchain than mere transactions.
What is Ethereum?
It is a system of online commerce which has been seen as e-commerce next step. The history of Ethereum is dated to its founder Vitalik Buterin. He is the founding editor behind bitcoin and he had a desire to seek more potential on the bitcoin blockchain. Automated contracts and transactions had a possibility of existence with regulated bitcoin. Buterin therefore, began programming and developing a blockchain that would allow for the automated contracts and transactions to take place. It was in 2014 where Buterin unveiled the Ethereum in his white paper which had a detailed structure of this new creation.
The structure of this block chain is divided into three. That is:•
It is a system that ensures that payments or transactions are not repeated. •
It is a system that allows the use of this blockchain to see his or her balance.•
It is a unique code that is in between system and it allows for payments to be made. It can also be defined as the capability of the blockchain and the Ethereum hence creation of smart contracts. They are automated ways of paying or receiving money. It only requires validation from its user to ascertain that it’s a valid transaction. Smart contracts are effective and efficient in that it is able to save you time and also cost of hiring external intermediaries such as lawyers. On the other hand, it is important to note that the Ethereum was not unique because of the contract code system. Its real uniqueness was seen with the Turing-Complete scripting language. The first test was seen in 2015 when the script was able to allow contracts between systems without any external modification. In the pathway, this system underwent a massive fall and rise in the year 2016 and 2017.
The rise and fall of Ethereum
The history of Ethereum is incomplete without the detailed events of its fall and incredible rise. Around 2015 and 2016, this currency saw a great stability with a massive increase in value to $10. However, there was unexpected hitch when it suffered a hack. Over $59 million dollars Ethers were stolen through the infiltration of the smart contracts. A vulnerability was displayed with this currency. However, the Ethereum programmers were also great hackers and decided to hack as a way of retaliating. This retaliation caused an increase of stock value. There was a split over moral and ethical issues relating on the way the hack problem was resolved. Later on, they collaborated with financial institutions to resolve their security problem.
The modern age has seen a lot of technological transformations such as digital currency. It is a new dawn where different currencies are embraced such as the Ethereum. Many banks have appreciated this type of currency.