- Jun 15, 2018
Ethereum is a blockchain-based distributed network that provides possibility to use smart contracts — digital protocols derived by using a computer code. The network is aimed to transfer data and to enforce terms of contracts by the two sides. Ethereum technology enables transactions registration on the basis of a distributed network of smart contracts, without traditional juridical procedures. A contract is executed by default when predetermined contractual terms is achieved, which must have a special mathematical formula. This allows network’s users to build markets, to transfer money in accordance with the instructions laid down in the smart contract in the past, without third party participation.The idea of a distributed network was first presented by Vitaliy Buterin, the Russian-Canadian programmer, in 2013. The Ethereum platform has been operating since June 30, 2015, after a successful ICO, which raised $ 18,439 million. In 2016 the Ethereum network was split in two blocks, one of which has given life to the Ethereum Classic cryptocurrency.