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What is Ethereum?
Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.
Ethereum was first described in a 2013 whitepaper by Vitalik Buterin. Buterin, along with other co-founders, secured funding for the project in an online public crowd sale in the summer of 2014. The project team managed to raise $18.3 million in Bitcoin, and Ethereum’s price in the Initial Coin Offering (ICO) was $0.311, with over 60 million Ether sold. Taking Ethereum’s price now, this puts the return on investment (ROI) at an annualized rate of over 270%, essentially almost quadrupling your investment every year since the summer of 2014.
The Ethereum Foundation officially launched the blockchain on July 30, 2015, under the prototype codenamed “Frontier.” Since then, there has been several network updates — “Constantinople” on Feb. 28, 2019, “Istanbul” on Dec. 8, 2019, “Muir Glacier” on Jan. 2, 2020, “Berlin” on April 14, 2021, and most recently on Aug. 5, 2021, the “London” hard fork.
Ethereum’s own purported goal is to become a global platform for decentralized applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime and fraud.
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Frequently asked questions
What Is Ethereum (ETH)?
Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.
Who Are the Founders of Ethereum?
Ethereum has a total of eight co-founders. Russian-Canadian Vitalik Buterin is perhaps the best known of the bunch. He authored the original white paper that first described Ethereum in 2013 and still works on improving the platform to this day. Prior to ETH, Buterin co-founded and wrote for the Bitcoin Magazine news website.
What are the main features of Ethereum?
For starters, Ethereum allows users to build dApps and issue smart contracts on its blockchain. This means that the majority of the DeFi companies and economic platforms that are currently taking the FinTech industry by storm are, in one way or another, based on the Etheruem blockchain. The crypto is also scalable, and promotes fast transaction speeds.
How does Ethereum differ from other cryptocurrencies?
Ethereum is a very scalable cryptocurrency that has some revolutionary technology behind it. While it was, for the longest time, a PoW (Proof-of-Work) crypto asset, with Ethereum 2.0, it is taking a turn towards PoS (Proof-of-Stake), which will increase its scalability and use cases exponentially.
What can Ethereum be used for?
Ethereum has a pretty wide assortment of use cases. For starters, naturally, most people are going to view Ether as an object of investment – a digital asset, if you will. On top of that, however, the technology behind Ethereum can be used to create blockchains of your own, or build things such as decentralized applications or smart contracts.
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