Ethereum: Understanding the Basics of the World’s Second-Largest Cryptocurrency

So, let’s start with the basics. Ethereum is a decentralized platform that allows people to build and use applications on a blockchain distributed ledger. It’s often referred to as a “world computer” because it utilizes the computing power of all the computers connected to its network. Unlike a traditional database, the information is stored on each computer or “node,” making it decentralized and controlled by no one.

Ethereum was developed by programmers Vitalik Buterin, Mihai Alisie, Anthony Di Iorio, and Charles Hoskinson, and was launched in 2015. To finance the project, the team issued its own cryptocurrency, ether. As of December 2017, the market capitalization of ether had already exceeded $70 billion, making it one of the top cryptocurrencies.

The Ethereum platform supports the creation of decentralized applications or “dapps” that are not controlled by a third party. These applications use smart contracts, which are computer codes that enable data storage, asset transfers, and more. They’re resistant to downtime, censorship, and fraud, making them a reliable solution for a variety of industries. Ethereum is often used for Initial Coin Offerings (ICOs) as it’s helpful for creating one’s own cryptocurrency to sell and kickstart a project.

Some examples of applications that have already been built on Ethereum include voting systems, real estate crowdfunding, lotteries, gaming, social networking, lending, money transfers, and more. Future projects may address the Internet of Things, prediction markets, the energy transfer business, and so on.

It’s important to note that Ethereum is still a young technology, and there are constant new developments and improvements being made. Other platforms like NEM have entered the same field and offer their own solutions for building applications on their blockchains. In March 2017, the Enterprise Ethereum Alliance was established, connecting enterprises from the Fortune 500, startups, academics, and technology vendors with Ethereum subject matter experts to create business-friendly Ethereum solutions.

Overall, Ethereum is a powerful platform that’s changing the way we think about applications, data storage, and more. While there’s a lot to learn, there are plenty of resources available to help you dive deeper and explore all that Ethereum has to offer.