Ethereum Light Report


The World Computer - the world’s first programmable money

  • Ethereum is a blockchain network created by Vitalik Buterin in 2013. The network allows anyone to write programs called smart contracts, which can then be executed by the network. 
  • Ether (ETH) is the native token of the Ethereum network. It is used to pay for the fees (gas) necessary for computation. The market capitalization of ether is second only to Bitcoin. 
  • Since its ICO in 2015, Ethereum has used proof of work (PoW) as its consensus mechanism. It is in the roadmap of Ethereum to transit into proof of stake (PoS). The Beacon Chain, which introduces PoS to Ethereum, was launched in December 2020, paving the way for ETH 2.0. 
  • Ethereum was conceived with a realization that blockchains aren’t just useful for simple transferrals, but for complex financial transactions and many other applications such as voting, prediction markets, and on-chain identity. Back when Ethereum was invented, the Bitcoin network featured only one application on top of its blockchain (bitcoin itself). The Ethereum network was built as a general-purpose blockchain where anyone can build any application on top of it. 
  • The programming language used to build smart contracts (applications) on Ethereum is called Solidity. 
  • At the original distribution event managed by the Ethereum Foundation, 60 million ethers, approximately 80% of the initial 72 million ETH supply, was sold to the public in exchange for bitcoin (BTC). 
  • There is no maximum supply of ether. As at the moment of writing, there is a circulating supply of 119,633,864 ETH. Ether could be mined just like BTC. After the implementation of Ethereum Improvement Proposals (EIP) 1559, which changed Ethereum’s fee market mechanism. EIP1559 introduced a base fee to gas payments on Ethereum. This base fee would then be burned. It introduced deflationary pressures to Ethereum. 
  • Conceived in 2013 by Vitalik Buterin, who published Ethereum’s whitepaper in 2014, and with its formal specification, the Yellow Paper in 2015, the Ethereum mainnet went online on July 30, 2015 at the Frontier update
  • Ethereum was founded by Vitalik Buterin, Anthony Di Iorio, Charles Hoskinson (founder of Cardano), Mihai Alisie, Amir Chetrit (the initial 5) in December 2013. Joseph Lubin (founder of ConsenSys), Gavin Wood (founder of Polkadot) and Jeffrey Wilcke were added in early 2014 as founders.



Yellow Paper 





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