Origin of Ethereum
Created by 19 year old math-prodigy Vitalik Buterin, Ethereum is second only to Bitcoin in the hierarchy of cryptocurrencies. Like Bitcoin, Ethereum is a distributed public blockchain network. Although there are some significant technical differences between the two, the most important distinction to note is that Bitcoin and Ethereum differ substantially in purpose and capability.
Differentiator from Bitcoin
Bitcoin offers one particular application of blockchain technology, a peer to peer electronic cash system that enables online Bitcoin payments. While the Bitcoin Blockchain is used to track ownership of bitcoins, the Ethereum blockchain focuses on running the programming codes of decentralized applications, or “dapps” for short.
Disruption in Blockchain Space
Before the creation of Ethereum, blockchain applications were designed to do a very limited set of operations. Bitcoin and other cryptocurrencies, for example, were developed exclusively to operate as peer-to-peer digital currencies. Ethereum’s creator, Vitalik Buterin took an entirely new approach, and with it forever changed Blockchain, applications, and the (new-coming)Internet as we know it.
Ethereum’s core innovation, the Ethereum Virtual Machine (EVM) is a Turing complete software that runs on the Ethereum network. It acts as both a cross communication layer between the thousands of dapps on the Ethereum Network, a security layer ensuring one blockchain or program can not interfere with another, and a test environment for developers to safely execute new dapps and protocols on the Ethereum Blockchain.
The Ethereum Virtual Machine makes the process of creating dapps easier and more efficient than ever before. Instead of having to build an entirely original blockchain for each new application, or hi-jack and modify an existing open-source blockchain, every Ethereum Node serves as a home-base for dapps to run.
In February 2017, Ethereum organization announced the Enterprise Ethereum Alliance (EEA), aimed at developing massive business solutions with Ethereum.
More companies and corporate giants become involved with Ethereum everyday: Microsoft, Mastercard, BP, Intel, Samsung, JP Morgan, Toyota, Cisco, Consensys, National Bank of Canada, and Scotiabank to name a few.