Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
In 2014, Ethereum founders Vitalik Buterin, Gavin Wood, and Jeffrey Wilcke started work on a next-generation blockchain that had the ambitions to implement a general, fully trustless smart contract platform.
Ethereum was officially announced at the North American Bitcoin Conference in Miami, in January of 2014. The development was funded by an online crowdsale that took place between July and August of 2014.
During the crowdsale, participants purchased Ether, which is the internal currency of the Ethereum network, in exchange for Bitcoin.
The Ethereum network went live on July 30th, 2015 with 72 million ETH pre-mined.
NOTE: WARNING: Ethereum is not a proof-of-stake (PoS) blockchain. Although Ethereum 2.0, the upcoming upgrade to the Ethereum blockchain, will introduce a PoS consensus mechanism, the current version of Ethereum still uses a proof-of-work (PoW) consensus algorithm. Therefore, it is important to be aware that Ethereum is not currently a PoS blockchain and should not be treated as such.
Ethereum’s vision is to “decentralize the web” by creating a platform where developers can build decentralized applications (DApps). These DApps can be built on top of the Ethereum blockchain and they don’t require a middleman or third party to work.
This means that they are more resistant to censorship, fraud, and third-party interference.
Ethereum’s native currency, Ether (ETH), is used to pay for gas fees when running DApps or smart contracts on the Ethereum network. ETH is also used as a form of stake in Ethereum 2.0, which is a major upgrade to the Ethereum network that is currently being developed.
When completed, Ethereum 2.0 will be a proof-of-stake (PoS) network where users can earn rewards for staking their ETH.
So, Is Ethereum a PoS? Yes, once the Ethereum 2.0 upgrade is complete, ETH will become a pure PoS currency and users will be able to earn rewards just by holding onto their ETH.
8 Related Question Answers Found
Decentralized finance, or “DeFi,” is a hot topic in the cryptocurrency space. Ethereum is the most popular blockchain for DeFi applications, with over $13 billion worth of value locked in Ethereum-based DeFi protocols. But what exactly is DeFi?
Ethereum Classic is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality. It supports a modified version of Nakamoto consensus via transaction-based state transitions. Ethereum Classic is a continuation of the original Ethereum blockchain – the classic version preserving untampered history; free from external interference and subjective tampering of transactions.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum is also a cryptocurrency, which can be used to pay for goods and services, or to trade like any other currency. The native currency of the Ethereum network is called ether.
Decentralized Autonomous Organizations (DAOs) are a new breed of online entity that are powered by Ethereum smart contracts. Unlike traditional online organizations, DAOs are not controlled by a single central authority, but instead they are run by a set of rules encoded on the Ethereum blockchain. This makes DAOs much more resistant to censorship and tampering than traditional online organizations.
Decentralized finance—often called “DeFi”—refers to the shift from traditional, centralized financial systems to peer-to-peer finance enabled by decentralized technologies built on the Ethereum blockchain. From lending and borrowing platforms to stablecoins and tokenized BTC, the DeFi ecosystem has launched an expansive network of integrated protocols that are changing the way we interact with financial services. By deploying immutable smart contracts on Ethereum, DeFi developers can launch financial protocols and platforms that run exactly as programmed and that are available to anyone with an Internet connection.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum is a PoW blockchain, meaning that new blocks are created through a process of mining. Miners compete to find a hash that meets certain criteria, and the winner is rewarded with ETH.
It’s no secret that Ethereum’s ICO was a resounding success. In less than two months, the project raised over $18 million dollars, making it the second most successful cryptocurrency crowdsale to date. But what exactly is an ICO?
When it comes to Ethereum, there is a lot of talk about whether or not it is a Ponzi scheme. While there is no one definitive answer, there are certainly some things to consider that could make Ethereum a Ponzi scheme. For starters, it is important to note that Ethereum does have a lot of promise.
