Cryptocurrency: Concept and Application of Ethereum
Basic concept of Ethereum:-
- Open-source cross-platform for development of Decentralized application
- Cryptocurrency: Ether token
- Smart Contract functionality
- Blockchain technology
- Includes not only money relating transactions but also open financial content, property details, details sharing, storing various valuable data, etc.
- Built on open-access infrastructure, neutral and controlled by no company or person.
To understand about Ethereum, Firstly, It is necessary to know about Cryptocurrency. Cryptocurrency is a special secured currency based on the science of cryptography (way of protecting the information using mathematics) and only exists in computer networks.
- Direct Transaction
- Transaction broadcast to the entire network at the same time
- Also, recorded in a permanent way
Ethereum was proposed in November 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer involved in Bitcoin Magazine. Development was funded by an online crowdsale that took place between July and August 2014 and finally this cryptocurrency was launched on 30 July 2015. Vitalik Buterin suggested that Bitcoin needs a scripting language for application development. But, he failed to convince all so he proposed the evolution of a new platform with the general scripting language.
Ethereum is a "Do-it-yourself" platform for decentralized programs also known as Dapps (Decentralized Application). Ethereum is not currency, but a platform.
- Ethereum's goal is to decentralize, the centralized Internet.
- Ethereum allows people to directly connect with people, in the absence of a middle person.
How Ethereum works?
Smart Control is the set of "Ifs" and "Then" which will have a certain condition and action.
- Blockchain works upon the concept of peer-to-peer technology which helps the user to transfer cryptocurrency faster, secure and transparently. Once the data is recorded in the Blockchain then it will be very difficult to delete that data.
ETHER Token is the cryptocurrency for Ethereum which is used by the application developers to pay as transaction fees and services on the Ethereum network.
Benefits of a decentralized Ethereum Platform
- Immutability – No One can make any change into the data, even the author itself.
- Corruption & tamper proof – Apps will be developed on a network according to the consensus(the general agreement), making censorship impossible.
- Secure – Apps are protected against hacking attacks and fraud activities. The data will also be secured.
- Zero downtime – Apps would not go down easily and can never be switched off.
Ethereum Classic and Ethereum
- June 2016: The DAO hack happened and the $50 million worth of Ether token, which was 15% of the total Ether in circulation back at the time.
- Due to this hack, there occurred certain conflicts between the Ethereum community, content writer, investors, and developers.
- October 25, 2016: Hence resulting in the formation of Ethereum Classic forks away from the original Ethereum protocol.