Ethereum, A Different Criptocurrency And Blockchain

We all know that the first cryptocurrency that appeared in 2009 was the bitcoin (BTC) that is the most famous and valuable one and it is considered as “Digital Gold”.

Then Litecoin (LTC) appeared in 2011, improving the speed of transactions whose blockchain comes from bitcoin core, and which was intended to be “the Digital Silver” in second place after the bitcoin.

Etherium (ETH) was launched in 2015 and its blockchain was totally different from previous ones but with a transaction speed similar to litecoin and with a special particularity that allows us to run protocols within its blockchain to generate what it is called “Smart Contracts“, which are very useful to regulate processes and transactions in a P2P network, (Peer-to-Peer or person to person). This cryptocurrency was initially created in 2014 following the model of the ICO (Initial Coin Offering) which is a globally distributed infrastructure that apart from serving as cryptocurrency, it can generate additional blocks to develop and run “smart contracts”. This is its great distinctive feature as well as its speed of transaction execution.

This special features of generating additional codes is very useful and is been used to create other cryptocurrencies or “tokens” using the system of the ICOs, so this feature can be rented for this purpose.

In 2017 the ICO boom took place, especially in the etherium-based sub-industry, and many projects and start-ups were accelerated using this new technology, but on the other hand, many of these projects did not become a reality and their investors lost their funds.

Etherium code is used by many companies as a framework to regulate their processes and contracts, and even some of them have organized themselves as foundations to promote etherium-based open source platforms so they can develop new applications that can be executed within the Etherium protocol. Thus we have companies and financial giants like Microsoft and JPMorgan that support the Etherium network as a basis for building and running their own smart contracts.

Thus we have the “Enterprise Etherium Alliance” as a business association supported by 200 companies and corporations that are devoted to design of etherium blockchain specifications that lead to harmonization and interoperability between business and consumers worldwide. It is therefore a community of members composed of leaders, innovators, developers and businesses that collaborate to create a Business Hub Network where they meet in an open and decentralized way. Thus this supranational organization has a remarkable field of practice so that the company members can make tests and developments in suitable scenarios within this framework.

Figure1: boards members within the EEA – Enterprise Etherium Alliance.

This way, we know that Etherium is backed by great firms which is, in a first place, a great advantage that can be reflected in the market price of this cryptocurrency. The growing applications of its blockchain, since there are more and more tokens based on it, are giving to this crypto a great potential to become one of best altcoins.

We have to say that Etherium had a hard fork in 2016, so that the original Etherium is actually Etherium Classic (ETC) and the new cryptocurrency was at that time Etherium (ETH) itself which had developed the “smart contracts” as its greater feature. Nevertheless the wallet address format is indistinguishable between these two cryptocurrencies.

Etherium is currently working on its new version 2.0 which is a significant upgrade from the first version of the blockchain. This implies a new arquitecture of Etherium platform to be able to launch a very scalable version. According to its roadmap, the implementation is expected to start early this summer and can be ready presumably by early next year and its final development can take up to two years. The 2.0 version is expected to be able to migrate from the Proof-of-Work (PoW) consensus system to the Proof-of-Stake (PoS) in which new etheriums are generated according to the degree of user ownership. On the contrary, remember that the way to generate bitcoins, is using the consensus PoW in which the generation of new blocks mined is done by the consensus of test work of each node to validate the generation of new units by other nodes in the network.

We can classify this new version of Etherium as a “Soft Fork” since it is still the same cryptocurrency but with a complete update making its technology and protocol much better and scalable.

According to the support received by this crypto and when its new update is complete in less than 2 years we will be able to see a completely renewed cryptocurrency with more potential than ever.

This article was updated on June 11, 2020