Ethereum is a platform that allows users to send cryptocurrency and use decentralized applications (Dapps).It was proposed by Vitalik Buterin in 2013 and went live on July 30th, 2015. Ethereum was built with the goal to offer a programming language that can be used to create smart contracts and decentralized applications (Dapps). Its development is supported by The Ethereum foundation which is a non-profit organization. It is funded by grants through The Ethereum Grants Program and The Ecosystem Support Program. When Ethereum launched, $5.2 million was raised to support the development of the program. This was done by selling 72 million of Ethereum's native currency, Ether (ETH) through the first ever initial coin offering (ICO).
Ethereum is a programmable blockchain that makes finanical services more accesible, secure, and censorship-resistant. It gives autonomy to users which include developers, institutions, and individuals. There are over 150 million unique Ethereum adresses and this continues to grow.
Ethereum competes against traditional financial services which are controlled by centralized systems such as governements or banks. Compared to these, Ethereum is more accsible and secure since it is an open platform that runs on a blockchain. In addition to traditional finance, Ethereum also competes against other projects such as Cardano and Polkadot. Compared to these projects, Ethereum has that largest network and stands the test of time. It also leads the market with aproximately 2,300 average monthly developers and has usable applications.
Blockchain is a type of database that stores information in groups (blocks) that are chained together. Ethereum's blockchain reads a series of inputs (transactions) that will transition Ethereum to a new state. It is a public digital legder that cannot be modified once transactions are recorded. For a transaction to be recorded on Ethereum's blockchain, it must be validated through the process of mining.
Ethereum utilizes proof of work to verify transactions. This involves nodes (computers), also known as miners, competing to solve complex mathematical equations so they can create and validate blocks. This requieres a considerable amount of computational power. The fastest node is given the opportunity to validate a transaction and is rewarded ETH. Miners are incentivized to accept the same blockchain since multiple chains would make it impossible to validate a transaction leading to no rewards being issued.
Ethereum was the first platform to introduce blockchain based smart contracts. These allow for transactions or agreements to to be programmed and execute only if all conditions are met. Smart contracts are more efficient and secure compared to traditional contracts since they eliminate intermediates and the possiblity of interference or manipulation. The smart contract language for Etheruem is called Solodity and the Ethereum Virtual Machine (EVM) executes smart contracts on the Ethereum blockchain.
Ethereum's use cases include decentralized finance (DEFI), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).
DEFI is a global financial system that is accesible to anyone who has access to the internet. Compared to traditional financial services, DEFI is more accesible, secure, and efficient. Use cases include sending money globally, exchanging currencies, borrwing and loaning, and insurance. For developed societies, this an improvement to the current systems in place. For undeveloped societies, this is an opportunity to have access to services previously unavailable.
NFTs are tokens that represent ownership of a unique items. Non-Fungible assets are unique and cannot be replaced with an equivalent asset whereas fungible assets are equiavlent to an identical asset and can be exchanged one-to-one. Use cases for NFTs include digital art, collectibles, experiences, and real estate. Creators have complete ownership of NFTs and can trade them through marketplaces using Ethereum. To instill integrity within markets, each NFT minted has a unique indentifier with a level of scarcity defined by its creater. NFTS give more control to creaters and eliminates the need for intermediates.
DAOs are member-owned communities that are run on the internet. Decisions within these communities must be made democratically with no single authority that can overide the majority. This creates trust and allows for a more interactive environment where each member can have an equal impact on the development of a community. Use cases include charities, freelancer networks, and ventures. All of this is possible through the use of Ethereum and smart contracts.
Ethereum is constantly developing with changes being proposed through Ethereum Improvement Proposals (EIPs). While I could recommend a specific technology or functionality, I'd like to focus on how the Ethereum Foundation could help accelerate the adoption of blockchain and cryptocurrency. Many people don't understand what Ethereum is and are either afraid or skeptical of getting involved. The Ethereum website has a lot of resources on its webiste, but it requieres individuals to know what they are looking for. I am recomending the Ethereum Foundation supports the development of DAOs focused on educating individuals about Ethereum and blockchain. They could get involved with educational systems throughout the world and help develop curriculems that teach individuals how to use Ethereum or even become developers. This could lead to an increase in adoption which would help Ethereum grow.
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