WTF

WTF is Ethereum?

  • Ethereum is a blockchain that was founded by Vitalik Buterin and launched in July of 2015.
  • Not all blockchains are created equal and Ethereum's a bit different.
close

Email a Friend

WTF is Ethereum?

So what is Ethereum?

Ethereum is a blockchain that was launched in July of 2015. It’s a part of the Ethereum Foundation, an organization promoting and supporting decentralized tools and apps, called dApps. Vitalik Buterin, a former Bitcoin miner who saw new potential in blockchain technology, is the creator of Ethereum. The Ethereum blockchain also houses a cryptocurrency called Ether.

Why does Ethereum sound familiar?

Ethereum got in the public eye for all the wrong reasons with its involvement in the DAO. We covered all the gory details, but in a nutshell, a user found a loophole in the programming of an Ethereum-based investment fund and siphoned off around $50 million worth of Ether.

DAO investors came to a consensus to create a hard fork, essentially a do over that’s similar to Apple’s Time Machine function, reverting all the Ether back to original users before closing the DAO.

What’s special about Ethereum?

It may not seem like it, but not all blockchains are created equal. Ethereum utilizes smart contracts to create automated transactions over its blockchain. Using these built-in algorithms, users can automatically transfer Ether over the blockchain to other users.

Having smart contracts written into the code is really important, because it makes Ethereum more than a distributed ledger. Other blockchains (like the one behind Bitcoin) have the capability to keep track of transactions. Ethereum’s setup allows developers to create smart contract-powered programs, like the DAO’s, on the Ethereum blockchain. So, when companies announce they’re working with Ethereum, it’s very different than just experimenting with distributed ledger technology.

Where is Ethereum going?

It’s been an up and down few months for Ethereum. After the DAO fiasco and hard fork, Ethereum’s gotten mixed reviews in terms of its future.

Ethereum was the subject of a massive DDoS attack a few weeks ago that no one really paid any attention to. After trying to fix the attacks with little success, Ethereum is probably going to hard fork again to try and fix its network problems.

There are some experts who feel Ethereum is positioned for long term success. Bitcoin expert Gavin Anderson predicted in a tweet that Ethereum should grow larger than Bitcoin. Coinbase CEO Brian Armstrong sees Ethereum scaling better than Bitcoin.

ethereum_to_surpass_bitcoin__gavin_andresen_tweet_foretells_growing_sentiment_-_cryptocoinsnews

Ethereum also has been working with JP Morgan on a private Ethereum blockchain to be used for derivatives and payments called Quorum. Microsoft recently announced Project Bletchley, an Ethereum-based BaaS (blockchain-as-a-service, and yes, that’s a real phrase) built on Microsoft Azure.

0 comments on “WTF is Ethereum?”

WTF

WTF is a banking desert?

  • Bank deserts exist in areas without banks.
  • Access to financial services has a sociological and financial impact on people.
Minahil Shahab | June 30, 2021
Blockchain and Crypto, Member Exclusive, WTF

WTF is stablecoin?

  • Stablecoin is a kind of cryptocurrency that’s tied to a reserve asset that helps stabilize its market value.
  • Here’s everything you need to know about stablecoin.
Shehzil Zahid | June 09, 2021
Member Exclusive, WTF

WTF is a SPAC?

  • Special Purpose Acquisition Companies go public and use the funds to acquire a company after.
  • More investors are becoming fluent in SPAC-speak.
Rivka Abramson | April 30, 2021
Member Exclusive, WTF

WTF is DeFi?

  • DeFi or decentralized finance refers to permission-less and transparent financial ecosystems powered by blockchain networks.
  • DeFi architecture eliminates the need to use financial services under regulation of governmental and financial authorities.
Rimal Farrukh | April 16, 2021
Member Exclusive, WTF

WTF is an NFT?

  • NFTs have taken the world by storm, with memes and art pieces selling for millions of dollars.
  • The digital assets have been lauded for letting artists reclaim power and mocked for their seemingly ridiculous nature. Here’s an inside look into the world of NFTs.
Rimal Farrukh | March 19, 2021
More Articles