Ethereum. Blockchain Version 2

A brief outline of Ethereum.

Ethereum is a platform that can be safely called the most promising follower of Bitcoin.

Ethereum, which is also known among the miners as Ether, was created by an eighteen-year-old programmer from Canada who has Russian roots. Vitalik Buterin created Ethereum in 2013. This idea was positively received by the society, so crowdfunding was organized and $ 18 million was collected in exchange for 60 million Ethers. This cryptocurrency had made considerable progress, with a decentralized system.

What is the uniqueness of this cryptocurrency?

Each transaction is carried out by a so-called smart contract, which is a computer program that is controlled compliance with the terms of the contract in automatic mode. Smart contracts are performed by machines, so they can not be canceled. Bitcoin protocol also contains smart contracts, but the creators have severely limited their capabilities.In Ethereum, contracts are also described in a full-fledged programming language — JavaScript.

Benefits

If we compare Ethereum with traditional systems, it has the following advantages:

Resistance to DDoS attacks;
Activation of network participants through cryptographic signatures;
Ability to customize the logic of ongoing operations;
Absence of a single point of network failure;
The presence of a story about the actions performed in the blockchain in the open access.

This cryptocurrency is the second-most popular after Bitcoin. Nevertheless, large financial companies, like JPMorgan Chase, IBM, Microsoft, the Bank of England and others, are interested in the technology of operations. Thanks to smart contracts there was an explosion in the market called ICO (Initial Coin Offering), and we’ll talk more about this next time.

Gas, Ether, ETH — all these are names of the Ethereum. The creators position their development as a virtual base for resources applying of decentralized network, and not as an alternative to modern currencies.

How to use?

In order for network attackers not violate the work of other miners, the author of operation should immediately specify the maximum number of stages in the calculation that can be.

Ethereum can be bought on cryptoexchanges. It is the second-most popular among the сryptocurrencies (the capitalization of all ETH tokens has reached 66 billion dollars) and has a great future. Ethereum will find its application in many areas and it is possible that the cryptocurrency will become more popular than Bitcoin.