What is Ethereum?
Ethereum is blockchain platform by the definition. The development process of the platform was made through four stages: The initial version was Frontier. In this version, users could buy and sell Ethereum, as well as do the mining, build, test, and upload smart contracts. A contract (A.KA. smart-contract) is a self executing contract where the terms and conditions are defined and enforced using software. Smart contracts are generally stored and secured using blockchain technology. In other words its a computer programme. To create these smart contracts Ethereum uses specific programming language called "Solidity" which can also be used for creating other cryptocurrencies. Ethereum is also considered to be a "host" of ICO since it's been established that more than 77% of all ICOs are hosted on Ethereum blockchain. The Ethereum platform is favored by Banks, when it was tested by Microsoft, it was found that major banks such as HSBC tend to use it. Just like any platform, Ethereum blockchain does contain algorithm which provide smooth functioning of mining operations.
Two common alghorythm in Ethereum are: proof of work (Pow) and Proof of Stake. is the planned PoW algorithm for Ethereum. When we think of the term algorithm or algorithmic approach to something we always tend to associate it with maths or at least thinking of it in mathematical concept. Crtyptrocurrency alghorythms are different as they contain many interdependent with each to ensure miners are equipped with tools to perform operations on the platform.
The consensus algorithm of a blockchain network determines a given state of the world in a decentralized way. It mediates between all participating nodes and thus finds a shared state of the system on which all can come to same understanding. When we even begin to bring up alghorythim, we always have to take into account equipment and energy levels which exist within the block. Energy level in blockchain are measured by consumption of electricity to enable miners to mine). The more miners are engaged, the more technology energy levels are being consumed in the process. The Ethereum algorithms are now quite popular and are used not only for Ether, but also for other cryptocurrencies. They are tend to be quite profitable (unless the cost of electricity exceeds the amount of coins mined within block chain). Since the complexity of mining within the system is constantly growing and with each block received, it becomes harder to get new ones. So, if this process eventually becomes too unprofitable with your current equipment, then you can always switch to another cryptocurrency based on the same algorithm with minimal effort.
Ethrereum got cool features for example, platform is designed and optimized for dapps. Dapps stands for decentralized apps. Ethereum is specifically designed to make those dapps work efficiently and smoothly which as a result provides an ecosystem for smart contracts. Just like with any other platform there is a payment which is required for those who use it. The ether is a tool used to make such payments. Ether however plays not only plays its role within payment framework, but also it plays crucial role for the platform as server of crypto-fuel allowing smart contracts to run. In other words it is "petrol" or "gas" which fuels the blockchain platform with necessary resources. Every single operation that takes part in Ethereum platform i.e. simple transaction, or a smart contract or even ICO requires certain amount of fuel just like the car engine requires fuel for vehicle to tun. "Petrol" is what is used to calculate the amount of fees that need to be paid to the network in order to fulfil an execution of a contract. So when smart contracts are "in motion mode" or making their journey via chain they become self-executed, such execution requires funding this is where ether comes in.
Creation of Ethereum
Ethereum platform was originally created by Vitalik Buterin launchesd in 2015 and written in C++ and other popular programming languages. The whole process wasn't smooth and was To create the Ethereum Network, the Ethereum team needed development funding. Rather than go to venture capitalists, they decided to reach out to the cryptocurrency community in a crowdsale. The Ethereum crowdsale ran in July and August 2014 and allowed future users and investors to purchase Ether (tokens on the future Ethereum blockchain) in exchange for Bitcoin. Since Bitcoin was an established currency at the time, the Ethereum team could trade it in for fiat currency to cover development costs. As a result of the Ethereum crowdsale, 11.9 million Ethereum tokens were sold (about 13% of the circulating supply), raising about 18.4 million USD.
The creator of Ethereum, Vitalik Buterin, saw the potential for using the blockchain for other things and pushed for a scripting language for Bitcoin to make development of applications on the blockchain possible but his proposal was rejected. In late 2013, he proposed the development of a new platform with support for more generalized scripting and application development. The Ethereum whitepaper describing the proposed technology was published by Buterin in November 2013. Vitalik Buterin was also a founder and creator of Ether cryptocurrency which is located within Ethereum blockchain platform. In 2016, Ethereum got upgraded to a better version and the upgrade is called Constantinople which makes Ethereum network a bit more efficient, paving the way for bigger changes further ahead. It also brings some important changes for miners on the network. With an new ugraded version would mean that new technical improvments are in operation. One of them is EIP 1014. This one is worth mentioning as it makes it possible to interact with Ethereum addresses that haven't yet been created. This is important as it will be used for so-called state channels, which will (hopefully) be an important scaling solution for Ethereum, allowing certain transactions to happen on a separate blockchain.
Roadmap for Ethereum
Ethereum is performing better than Bitcoin as stated by ConsenSys, Enterprise Ethereum Alliance, smart contracts and ICOs. Ethereum recently launched its first pre-release of phase zero officially, in its transition to Ethereum 2.0 (Serenity). This is aimed at making Ethereum better and faster. The final completion date is set around sometime in 2021. Even Ethereum has come up with fastest and an ad-free blockchain explorer, EnjinX, which would definitely make ETH more accessible to the mainstream market.
The Ethereum roadmap was divided into five major parts, with Byzantium and Constantinople being part of one phase called Metropolis, which is mentioned in the Ethereum roadmap for January 2019 This is a huge step in Ethereum's approach towards success. Anyway, Ethereum fork upgrade is also going to happen sometime in late February. Vitalik Buterin spoke about the future of Ethereum scaling at its TechCrunch Sessions Blockchain event in Switzerland’s “crypto valley” saying that the demand for using public blockchains is high and we need to up the stability in order to meet that demand.