What is Ethereum?
Ethereum is a computational platform that is
“remunerated” through exchanges based on a cryptocurrency calculated
in Ether. It is a platform that can be adopted by all those wishing to become
part of the Network and in this way will have a solution available that allows
all participants to have an immutable and shared archive of all the operations
implemented during the time and that at the same time it is conceived for not
being able to be stopped, blocked or censured. Ethereum could be presented as
the largest shared computer that is able to deliver a huge power available
anywhere and forever. So with Ethereum we move from the concept of Distributed
Database to Distributed Computing. Ethereum is designed to be adaptable and
flexible and to easily create new applications. Ethereum is a Programmable
Blockchain that does not limit itself to providing predefined and standardized
“operations”, but allows users to create their own
“operations”. In fact it is a Blockchain platform that allows to give
life to different types of decentralized Blockchain applications not
necessarily limited to cryptocurrency alone.
exchange currency of Ethereum
The use of Ethereum’s computational resources is
remunerated with a special “virtual currency” called Ether which
represents itself both the processing power necessary to produce contracts and
the cryptocurrency that allows “pay” for the realization of
contracts. Ether is fundamentally and concretely a token that is treated as a
cryptocurrency exchange with ETC’s ticker symbol.
Ethereum then has an Internal Transaction Pricing
Mechanism called Gas which aims to optimize network resources, prevent spam and
allocate resources in a proportionate and correct way according to requests.
Virtual Machine EVM: the “engine” of Ethereum
Ethereum is a “Turing complete” system that
allows developers to create applications that run on the EVM using programming
The Ethereum engine is represented by the Ethereum
Virtual Machine (EVM) which represents the runtime environment for the
development and management of Smart Contract in Ethereum. EVM operates in a
secure way, ie it is completely separate from the Net. The code managed by the
Virtual Machine does not have access to the Network and the Smart Contract
generated themselves are independent and separate from other Smart Contract.
In 2016 Ethereum was divided into two different
Blockchain Ethereum Classic and Ethereum Foundation.
What is Ethereum Foundation? The Ethereum Foundation is the organization that aims to manage all the development, research and support activities of the Ethereum platform. In 2014, when the developer team composed of Vitalik Buterin together with Anthony Di Iorio, Mihai Alisie and Charles Hoskinson Ethereum became a reality also in the form of a company with the Swiss company Ethereum Switzerland GmbH. It was then the non-profit foundation Ethereum Foundation to take the reins of the project.Ethereum has been characterized by a series of prototypes and development actions financed and managed by the Ethereum Foundation based on the concept and design of Proof of Concept up to the launch of the Frontier network project in order to improve safety and usability. Among the various initiatives, mention should be made of the Olympic project which, among other things, aimed to test the performance and the limits of the Ethereum Blockchain network with a “Stress Test”. With the Olympic project then comes the aforementioned Frontier network. More recently, the Ethereum Foundation is involved in the Homestead project designed to improve the transactional component, the logic of Gas for the management of pricing and security. Next to Homestead, the Metropolis project is active to simplify the use of the Ethereum Virtual Machine and allow developers to act with greater flexibility and speed. Another project, Serenity should bring a series of innovations in the management logic of the algorithm that manages the consent of Ethereum. What is Ethereum Classic? Ethereum Classic is the result of an important division in the original core of Ethereum at the Ethereum Foundation level. In particular, Ethereum Classic is made up of Ethereum members who have decided to give life to a “new” version of Ethereum, in fact not sharing the development lines of the Ethereum Foundation. Ethereum Classic is managed by a different team than the Ethereum Foundation. Ethereum Classic is a network that in the intentions of its promoters remains 100% compatible with the Ethereum technology, but with a series of services designed to increase security and usability. Ethereum Classic is based on the development of a non-hackerable Blockchain and has developed a token emission strategy in proportion to the development of the network over time, in order to limit the risks of deflation of cryptocurrency.
Ethereum and Ethereum Classic: what are the differences? Ethereum represents the “official” version of the Blockchain and is managed and updated by the developers who conceived and created it, Ethereum Classic instead is a Blockchain that starting from Ethereum stands as an evolution or as a form of “alternative”. The reason that led to this division is linked to a specific hacking event that hit an Ethereum project (precisely, The DAO) and that had led the Ethereum community to change the Ethereum code to remedy the consequences of this hacker attack . This decision has opened a fracture on the very concept of Blockchain, that is, on the basic principles of this paradigm. On the one hand there were all those who claimed that the Blockchain live on the principle of the community and is the majority of the community that decides on the possible evolution of the Blockchain itself. And based on this belief if the majority of the community agrees, the Blockchain can be changed. Then there is a different school of thought that instead claims that the Blockchain can not be changed, must be firmly protected from any form of tampering. This division has placed developers at a crossroads and the so-called “purists”, when Ethereum created a new Blockchain, have chosen to continue operating on the old version of the Blockchain. Concretely with this passage two Blockchain Ethereum have been created and in particular Ethereum Classic operates today as a parallel version of the Blockchain.