The public expectation to answer the question “What is Ethereum?” is to introduce it as one of the digital currencies! But that’s not the case. Although Ethereum holds a significant position as the second-largest digital currency, controlling 18% of the crypto market share, its role goes far beyond that. In fact, Ethereum is a platform or software that is used decentralizedly worldwide. The FFMag website intends to provide comprehensive information about this popular platform.
What is Ethereum?
Ethereum, as mentioned, refers to a global platform and is represented by the symbol ETH. This software, supported by blockchain technology, has the capability to create a peer-to-peer payment network. Therefore, it possesses advantages and features such as scalability, high security, decentralized operations, and customizable planning.
When we talk about Ethereum’s decentralization, we’re referring to its support for smart contracts and its activities within this framework. In simpler terms, this smart platform serves as a foundation for executing programs that are operable on the blockchain network and conducts transactions with encrypted codes.
For a better understanding of what Ethereum is, it’s important to note that with the establishment of the ETH platform, many globally significant activities have been realized, with one of them being the prominent exchange, Uniswap. This software has also penetrated and performed well in other advanced areas, including Metaverse and concepts like NFTs, which owe their momentum to the active presence of the Ethereum platform.
The Story of Ethereum’s Birth
The role of Ethereum in the cryptocurrency space is so important that without understanding the ups and downs it has gone through, one cannot grasp a proper understanding of digital currencies and their related networks.
The adventure of Ethereum’s beginnings dates back to 2013 when a 19-year-old man named “Vitalik Buterin” discussed a new generation of smart contracts in an article titled Ethereum. He introduced it as a decentralized platform. One year later, at the Bitcoin conference in Miami, North America, the importance of this article was highlighted, drawing the attention of many experts. The publication of the “Yellow Paper” on the technical implementation of Ethereum 2, undertaken by “Gavin Wood,” was influenced by this event.
It wasn’t long before news of Ethereum’s first crowdsale reached the public, and its $18 million profit from the token sale was revealed.
Expansion of Ethereum’s Idea
With the good news heard everywhere about this newborn, everyone was eager to know what Ethereum is, what it does, and how to expand it.
ETH was growing and maturing, striving to find higher and better-quality versions of its underlying programs, and each time it did so, it created a new branch. In Ethereum’s technical language, it was interested in the phenomenon known as Hard Fork! I’m also eager to familiarize myself with you on the FFMag website with the steps of advancement of this global concept that has created a revolutionary storm in cryptocurrency.
Technical Foundation; Ethereum reaches out to its users
On July 30, 2015, supporters of technical developments were introduced to the first version of ETH, Ethereum 1.0, known as Frontier, which introduced itself with two types of operations: “Ether mining” and “Execution of smart contracts by users”.
At this stage, the Ethereum network was taking shape to allow miners to start their work and developers to have an opportunity to deploy and test their decentralized applications. If I had been familiar with these concepts those years ago, surely my most important question would have been: What is Ethereum mining? I doubt I would easily grasp its definition and how it works!
In this initial phase that lasted until March 14, 2016, the first small fork, known as Frontier Thawing, occurred. During this fork, the Gas fees (the measurement unit for Ethereum mining efforts) were estimated and limited to 5,000 per transaction.
Creating security infrastructures; Trust Ethereum!
Just a year had passed since the DAO hack on the Ethereum platform raised concerns about its vulnerabilities. Efforts to address these concerns began, and around mid-March, whispers of a new version of ETH with higher security called Homestead started circulating. However, efforts are not always successful; a flaw in the smart contract code provided hackers with the opportunity to access a portion of the organization’s capital.
Discussions began on creating a Hard Fork to recover lost funds, but its acceptance was not easy for the public. In these circumstances, another branch was created, known as Ethereum Classic, which continued to operate.
Read More: What is a Candlestick and the Most Important Candlestick Patterns ?
Perhaps the nature of ETH takes shape with these ups and downs, and we must pay attention to all of them to truly understand what Ethereum is. Efforts to combat hackers and increase network security continued with two more forks named Tangerine Whistle and Spurious Dragon until October 2017.
Problem-solving; Ethereum stands on its own feet
Ethereum’s activities did not stop, and it continued to improve during operations to a point where a new version, named Metropolis, was introduced. The program was completely secure, implemented privacy policies, and had scalability capabilities. It was evident that a very complex process had taken place, so the update was carried out in two stages: Byzantium and Constantinople.
The phase of securing and solving problems and adapting to challenges continued until January 2020.
Achieving tranquility; Everything gets better
Now, any new version of ETH introduced is more scalable, secure, and stable. Now, when asked what Ethereum is, all its achievements and advantages can be proudly mentioned. Ethereum 2.0 promised bright and growing paths for this popular platform from 2020 to 2022.
Once again, we can continue this eventful journey until today, but it might not be a bad idea to step into this exciting world yourself and get to know it up close.
Summary
When asked what Ethereum is, a short answer could be that it is a global decentralized platform that allows the execution of smart contracts for peer-to-peer transactions with the support of blockchain technology. However, this short answer does not reveal the interesting stories of the formation and growth of ETH that lie behind it. The path from one article to various versions of Ethereum unveils and encompasses many other points. We know you asked what Ethereum mining is, and you will find the answer on the FFMag website.
Also Read: Introducing the Top 20 Cryptocurrencies
By David Taha