Ethereum is a digital (autonomous) smart contract platform that uses Ether (ETH) as its currency.
It uses the same technology as Bitcoin. Its creator, Vitalik Buterin, started writing articles about Bitcoin and cryptocurrencies.
He decided to look for new applications. For him, smart contracts were the next logical step, so he developed Ethereum.
Ethereum does not depend on a financial institution. It is a smart contract platform, with its own currency.
Birth and operation of the Ethereum network
The decentralized system uses blockchain technology. The ethereum network began to take shape in late 2013 and launched in 2014. Vitalik wanted to go one step beyond Bitcoin. Taking advantage of technology, he designed a decentralized system of autonomous/smart contracts.
To understand the birth of Ethereum, it is necessary to review the basics of Bitcoin. Bitcoin, as we have already said, is a decentralized currency. This means that the account has several authorities that, through a concession, manage to control the veracity of the transactions.
After blockchain technology came into use and proved to be reliable in Bitcoin, there were many people who started working to see how this technology could be used to improve and solve different problems. That is where the new developments we continue to see today began.
This infrastructure is made up of computers/nodes from all over the world, guaranteeing its security and operation. For this work “computers / miners” receive payment in Cryptocurrency (Ethers) through the network.
The code is taken as law; Once written, uploaded, and authorized by network administrators, it cannot be changed; It’s basically like making a contract in front of a notary/notary public.
How is the operation of the Ether?
Now as we all know to maintain any network we need computers and power and this is where Ether comes into the equation.
When you make a contract, the way to upload it to the network is by paying a fee for the services of the person who makes it “legal on the network.” Payment is made in Ethers.
In addition to being autonomous, Ethereum works with minimal commissions.
This way, It works like the Bitcoin network. Those who maintain the “computers” on the network receive Ethers for keeping the network running. The contract becomes legitimate when you upload it to the network.
Objectives of the decentralized technology of Ethereum
One of the main goals is to re-establish the Internet as a decentralized operating arena.
Currently, global companies like Google, Facebook, Amazon, Uber, Airbnb are monopolizing the internet highways.
They have become the middle man and obviously profit driven.
The Ethereum platform aims to eliminate the middleman by connecting the buyer and seller directly without a third party.
This process is supported by blockchain technology and is a significant step towards a new autonomous model of social reality.
The Ethereum Evolution
Currently, there are two generations in operation.
There has been a continuous refinement that provides and guarantees security and privacy.
Today the Ethereum network continues to work and improve and that is why we say that it is one of the most relevant cryptocurrencies today.
In Ethereum Classic (ETC) generation contracts cannot be modified.
In the new generation of Ethereum (ETH) some modifications are possible.
Ethereum Classic (ETC)
Ethereum next generation (ETH)
