Vitalik Buterin proposed Ethereum in late 2013.Crowdsale funded for this platform. It is a block-chain based platform which is public and it is open source. Smart contract functionality is its feature. This platform generates Ether. It is a cryptocurrency.
Two or more accounts can transfer this cryptocurrency.A complete virtual machine which is known as Turing, is provided by Ethereum. This virtual machine is used to execute scripts.
It has an internal transaction pricing mechanism which is used to allocate resources and mitigate span on the network.
In 2016, Ethereum was divided into two blockchains.One is known as Ethereum (ETH) and another one is known as Ethereum Classic (ETC).
In Wikipedia, ether means a hypothetical invisible medium and it allows light to travel. So from this concept Vitalik Buterin picked the name Ethereum.
Few planned protocol upgrades are done by Ethereum after its initial launch. Soft fork means a change of rules through block chains. Protocol upgrades in ethereum happened through soft fork. It has been upgraded through open source code base.
First stable protocol upgrade was “Homestead”. This upgrade includes transaction processing improvement, security and gas pricing.
In this system, chain provides validity. It results in growth of list of records. This list of records is called blocks. This whole system is secured by cryptography. The main advantage is in this system, modification of the data is very much restricted by block chain. Ethereum provides an efficient transaction between parties with the assurance of verification and permanent systematic way. This process maintains a procedure which is known as state transitions. It handles accounts and balances in a specific way. In this system, public and private keys or addresses will be used. This will be stored in a crypto currency wallet. It is used to receive or give away Ether. Transaction process is, if any user wants to send ether to an account, then he needs the receiver’s public key of that account.
Comparing with bitcoin:
Ethereum is faster than bitcoin. Bitcoin’s block time is 10 minutes; ethereum’s block time is 14-15 seconds. In case of mining, rate of ethereum increases in a consistent way, while rate of bit coin decreases. This system uses Ethash algorithm. Computational complexity, storage needs, bandwidth use are the main factors on which transaction fees can differ. In compare with bitcoin, transaction fee of ethereum is lower.
Decentralized applications are handled by ethereum blockchains. It is because they operate through Ethereum Virtual Machine. In case of initial coin offering projects, Ethereum is the leading platform. It has 50% market share also.J.P Morgan Chase and Royal Bank of Scotland is the main two permissioned-variant ledgers for ethereum. This system uses Merkle trees. For this scalability and transaction hashing will be optimized. This system allows storage savings. It is able to face congestion problems also.
Only five lines of code implement Name coin in this cryptocurrency option. Ethereum makes any registration possible with any asset if this registration is within the network.