Wed. Feb 1st, 2023

2nd Generation Cryptocurrency Ethereum

Ethereum, commonly called the second-generation cryptocurrency, was developed by Vitalik Buterin, a Russian-born Canadian who dropped out of college. 바이빗 After first hearing about Bitcoin from his father, a programmer, in 2011, at the age of 17, he published a white paper equivalent to the design of Ethereum in 2013 when he turned 19 and released Ethereum to the public in 2015.

In recognition of these contributions, Vitalik Buterin was selected as the winner of the IT software category by beating Facebook founder Mark Zuckerberg at the World Technology Awards co-hosted by Forbes and Time in the winter of 2014.

Virtual Currency Ethereum Features

To express Ethereum’s characteristics in a single word, it can be said to be a world computer. While Bitcoin simply stores cryptocurrency transactions in the blockchain, Ethereum allows various computer program codes (aka “smart contracts”) as well as currency transaction records on the blockchain to be stored and executed.

For example, suppose a Druking group buys a high-performance server and runs a macro program for comment manipulation. In this case, it is expensive to purchase a server, and it is also difficult to install and operate it properly. But using Ethereum is simple.

Ethereum with Compensation System

First, Druking registers (stores) a macro program on the Ethereum blockchain. It should be noted that the macro program is designed to automatically pay cryptocurrency as a reward to the person who runs the program instead because there is a kind of reward called “gas.”

Once a program is registered on the blockchain, even the original author cannot modify it, and it is transparent to all users.

Now any Ethereum user can run this macro program instead and get rewarded, and the Druking party no longer has to be bothered by high-performance servers.

the influx of Ethereum

The first example of how to use blockchain and smart contracts in real life, which felt far and difficult to the public, is Axiomgen’s Cryptokitty.

Cryptokitty, which was released in November 2017 and became so popular that it paralyzed the Ethereum network, is a type of pet collection and development game that can collect or exchange digital cats, and the game itself is simple.

Using cryptocurrency, you can buy and collect cats with their own genes, and cross them with different species to create species with new genes. If you don’t like it, you can sell it, and if you want a cat, you can buy it.

However, the difference from existing pet games is that they use blockchain technology, so once purchased, each cat will forever be mine even if the game company goes bankrupt, and illegal copying, forgery, and alteration are impossible. In other words, game items are permanently my property. Due to these characteristics, more than 100 cats worth more than $10,000 have been traded since the launch of Cryptokitty, and some users have even traded more than $100,000 cats (as of April 2018).

These significant programs such as Cryptokitty are called decentralized apps, short for Daps.

Why Ethereum Prospects Are Bright

Just as Google and Apple do not create their own smartphone apps (software), Ethereum provides space for people to upload their own apps through the Google Play Store or the Apple App Store.

For this reason, virtual currency Ethereum is not just a currency like Bitcoin, but is also called a currency, a platform, and a coin that helps develop other coins, and some compare Bitcoin to “golden, Ethereum” oil.

By Andrew