Nowadays Ethereum – ETH is the main rival of the Bitcoin on the cryptocurrency stock. This virtual currency is much younger, but the specialists call it the most perspective and technological one at this moment.
Unlike bitcoin, it can serve not only as the alternative to the traditional currency systems but as the worldwide computer. To say shortly, this is the universal platform where any application can work. Experts call it the next stage in the development of blockchain.
The Ethereum crypto platform was founded in 2013. Its inventor was Vitalik Buterin, a 19-year-old programmer from Russia.
It is amazing how such a youngster managed to not only successfully develop his crypto platform but provide it with much more possibilities than his predecessor, the mysterious Satoshi Nakamoto managed to.
This undoubtedly gifted young man did, even more, inspired other people to follow his ambitious idea.
The campaign started in 2014 and brought the necessary investments to start bringing it to life. In 2015 the first release happened at last. The launch of the blockchain, the Ethereum blockchain became the beginning of the new era in the cryptocurrency history.
Like the Bitcoin system, Ethereum has coins. They are called ether. But its main thing is not in these coins but in the so-called smart contracts.
These special programs work after the certain events happen. It is just as simple as the standard algorithm in the computer protocol. And this gives the opportunity for work of the multiple decentralized apps. The first legendary Ethereum protocol launched in 2015 was called Frontier. The second one was launched in the next year.
By this time, Buterin and his team did a great job. Being talented not only as the developer but also as the businessman, he succeeded in making a brilliant promotion for his newfound cryptocurrency. The young genius nailed it by establishing a partnership with big guns as Microsoft. So, in 2016 the second version of the protocol, Homestead, appeared.
At the moment the price of Ether made an incredible jump — it went up to 10 times more in only 2,5 months. The platform went steady, and the network gained 1 000 000 000 $ capitalization. It was the success. The information about the phenomena spread all over the media, attracting new investors and possibilities. Nevertheless, how it often happens, it was the silence before the storm.
The Big Breakdown
In June 2016 the storm began. A technical mistake in the system of decentralized investments became the weak place of the monolith. The criminals found it and stole one-third of the company’s investments. The sum was about 50 000 000 $. Two days later and the price of the Ether currency dropped by Thrice.
The catastrophe leads to the great controversy inside the Ethereum community. Buterin, together with the Ethereum fund, was insisting on the hard work of the network to correct the mistake and bring the stolen money back.
But a solid part of the community objected. The hard fork would have contradicted with the basic principle of cryptocurrency operations – the blockchain consistency.
It was the time of passionate debates though ended with quite an obvious solution. After the month of the struggle, the hard fork finally happened. Buterin and his team succeeded to correct the base and received their money back.
But this situation tore the community apart. The part of it that protested the hard fork divided itself and built an independent network, Ethereum Classic. It represents itself as the network free of censure, forgery and any intrusions, keeping the traditions of the beginning of Ethereum era.
The hype around the hard fork caused rather sad consequences. The price on Ethereum kept dropping. In half a year, it dropped down to seven dollars. Many analytics predicted it to be the funeral of Ethereum currency.
Still, Buterin, being a genuine businessperson, managed to bring the trust of the investors back. At the end of 2016 bitcoin started growing again. This fact contributed to the growth of other cryptocurrencies altogether.
In February problems with bitcoin’s cash flow management turned the attention of major investors to the alternative cryptocurrencies for their actives. And naturally, Ethereum was among them. The overthrown Atlant began to shrug.
In April 2017 the bitcoin currency underwent the other strong series of attacks. The number of non-standard transactions doubled. The transfers took more and more time; the commission increased up to several dollars. It became a final point for the triumphal comeback of the Ethereum into the top of the most reliable cryptocurrencies.
Buterin had moved to Singapore to expand his activity into the Asian direction. The Ethereum platform continues developing and improving, constantly implied with innovations.
It is a well-planned structure with the adequately estimated goals. The developers have learned from their own and the rivals’ mistakes. Without any doubts, it has tremendous perspectives.
What helped Buterin save his creation after the heavy breakdown? The passionate belief in his business that infected other developers and investors. The craving to achieve his aims no matter what happens. The perseverance and strength to overcome all the obstacles. He has never seen the other way but ahead. It is a truly inspiring example and proof that he who dares wins.
You can own ether by opening a virtual wallet and with the help of an exchanger like CoinMamma, CoinBase, Changelly, you can get your first Eethereum coins from your cash. Or if you simply want to profit from the price change of Ethereum then use a cryptocurrency broker like Etoro.