Ethereum (ETH) is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality, which facilitates online contractual agreements. Ethereum also provides a cryptocurrency token called "ether", which can be transferred between accounts and used to compensate participant nodes for computations performed. "Gas", an internal transaction pricing mechanism, is used to mitigate spamand allocate resources on the network.
History of Ethereum
- Ethereum was initially described in a white paper by Vitalik Buterin, a programmer involved with Bitcoin, in late 2013 with a goal of building decentralized applications. Development was funded by an online public crowdsale during July–August 2014, with the participants buying the Ethereum value token (ether) with another digital currency, bitcoin.
- As of may 2017, the value of ether had risen to more than $400, a 5,000% rise since the beginning of the year. ETH has become the second most valuable cryptocurrency to Bitcoin.
The value token of the Ethereum blockchain is called ether. It is listed under the diminutive ETH and traded on cryptocurrency exchanges. It is also used to pay for transaction fees and computational services on the Ethereum network.
Tokens can be volatile per circumstances, such as ether's plunge from $21.50 to $8 when The DAO was hacked on 17 June 2016. As of June 2017, the value of ether had risen to more than $400, a 5,000% rise since the beginning of the year. Volatility continued, however, including a "flash crash" triggered by a large sell order on one exchange which briefly dropped the price to $0.10, after which it recovered to more than $300.