The Birth of Ethereum
The concept of Ethereum emerged in 2013 when Vitalik Buterin (commonly known as “Vitalik” or “Vē„” in crypto circles), then a programmer in the Bitcoin community, proposed creating a developer-friendly programming language to simplify application development. When Bitcoin core developers rejected the idea, Vitalik decided to build an entirely new platform.
The Ethereum Whitepaper and Crowdfunding
In 2013, Vitalik authored the Ethereum Whitepaper, outlining his vision for decentralized applications. By 2014, development began after a successful crowdfunding campaign raised the necessary resources.
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Ethereum’s Hard Forks: Key Milestones
Ethereum underwent four major hard forks to improve functionality and security:
- First Fork: Adjusted mining difficulty parameters.
- Second Fork (“Homestead”): Launched a stable mainnet version.
- Fourth Fork: Addressed DDoS vulnerabilities and optimized network efficiency.
The DAO Incident: Ethereum’s Defining Crisis
Timeline of Events:
- July 2015: Vitalik and the Ethereum Foundation deployed the first smart contract platform, including The DAO.
- April 2016: The DAO completed a record-breaking $150M crowdfunding (surpassed later by EOS’ $5B raise).
- June 2016: Hackers exploited a vulnerability, stealing ~$50M worth of ETH, causing prices to plummet from $20 to $15.
The Fork That Created Ethereum Classic
On July 20, 2016, at block height 1,920,000, Ethereum executed an emergency hard fork to reverse the hack:
– New Chain: Ethereum (ETH) ā Adopted by most users and developers.
– Original Chain: Ethereum Classic (ETC) ā Maintained by proponents of immutability.
Key Differences: ETH vs. ETC
| Feature | Ethereum (ETH) | Ethereum Classic (ETC) |
|---|---|---|
| Philosophy | Pragmatic upgrades | Code immutability |
| Consensus | Transitioned to Proof-of-Stake (PoS) | Maintains Proof-of-Work (PoW) |
| Market Cap | Larger ecosystem support | Smaller niche community |
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