Ethereum is an open source, decentralized platform that allows the creation of intelligent contract agreements between peers, based on the blockchain model blockchain. Any developer can create and publish distributed applications that make intelligent contracts. Ethereum also provides a cryptocurrency chip called 'ether'. You can exchange ether between different accounts and it is also used to compensate the participating nodes for the calculations made.
Ethereum was proposed by Vitalik Buterin, a cryptocurrency developer. The development of the same was achieved thanks to a collective financing platform, from July to August 2014. The system finally came out on July 30, 2015.
After a bifurcation of the block chain in July 2016, there are two active Ethereum lines: Ethereum and Classic Ethereum.
Basic operation:
Ethereum works in a decentralized way through a virtual machine called Ethereum Virtual Machine (EVM). This machine executes an intermediate code or bytecode which is a mixture of LISP, assembler and bitcoin script.
Programs that make smart contracts are written in full-level programming languages of the full Turing type, such as Serpent or Solidity, which follow the contract design methodology to create intelligent contracts.
Ethereum uses the ether as the internal currency, the underlying decentralized cryptocurrency that serves to execute the contracts of the same. In this respect, Ethereum is not like most existing cryptocurrency, since it is not only a network to reflect monetary value transactions, but it is a network for the supply of Ethereum-based contracts. These open source contracts can be used to safely execute a wide variety of services, including: voting systems, financial exchanges, crowdfunding platforms, intellectual property and autonomous decentralized organizations.
An ether is divided into smaller units called finney, szabo, shannon, babbage, lovelace and wei. Each unit is equal to a thousand times the next smallest unit, therefore 1000 finneys are a 1 ether, 1000 szabos are a finney, and so on.
Ethereum: what does he offer us?
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The Bitcoin is on everyone's lips, due to the overwhelming success that is taking its value in recent months, another cryptocurrency has begun to take bellows and the humming begins to be constant. This is the Ethereum, the second virtual currency in terms of relevance, if we rely on its value, which already exceeds 800 dollars per unit and caresses, therefore, the dream barrier of $ 1000. With this price increase, and with the fear of losing the opportunity to obtain a great profit, investments in Ethereum have multiplied and is positioned with the wind very favorable for next year. If you still do not know exactly what Ethereum is, and what are the reasons why you should pay special attention to its changes, we tell you. A little about this coin It tends to be identified instantaneously as a virtual currency, the truth is that, in the first place, Ethereum is a platform. The name of the coin has always been Ether, although currently both names are used interchangeably due to the popularization of the same. Ethereum, as a platform, is developed by the Russian VitalikButerin that, unlike Satoshi Nakamoto (name with which the bitcoin created appeared, whose identity is unknown, since it was probably a group of people and not a single individual). He is a physical and identifiable person.
The usefulness and purpose underlying the creation of the Ethereum are intelligent contracts, which are nothing more than a way of guaranteeing the fulfillment of an agreement safely and without the intervention of third parties. Through its use, with the consent of both parties, it is the platform that is responsible for executing the prescribed and agreed upon when the conditions for them are met. The technology behind Ethereum is blockchain, the same as in Bitcoin. This method of block chain, is the one that can be found in most virtual currencies, although some dare to work in another way. There are some differences between bitcoin and Ether, but the truth is that both work and are obtained in a similar way, under blockchain, and through mining. The biggest difference is that there is a maximum number of bitcoin that can be issued (21000000), while that limit is not given in Ethereum.
Present and future
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The Ethereum as a currency is what is more relevant for the social part. This is due to the ability of any person to be able to buy a certain amount of this value, and with the market playing in favor. Obtain a remarkable profitability in a very short period of time (in the last month, for example, the value of ethereum has risen by 136 percent). It is a trend that we see replicated with the main cryptocurrency of the moment. There may be many potential uses that are currently in their majority use.
Thanks for the explanation even though its still above my head a bit.