Ethereum – History and Use Cases of This Popular Cryptocurrency

Ethereum is undoubtedly the second largest cryptocurrency in the digital currency space. It represents the 2nd generation blockchain technology while the first one was pioneered by Bitcoin. It’s to note here Ethereum was developed to overcome the scripting limitations of Bitcoin. The Ethereum blockchain is bustling with advanced scripting facilities which have led to the realization of many vital use cases in real life that were unheard of before.

History of Ethereum

ethereum-blockchainEthereum was founded by Vitalik Buterin, Joseph Lubin and Gavin Wood. However, crypto researcher & programmer Buterin was the main man behind the revolutionary cryptocurrency. Interestingly, Buterin started his journey in the crypto scene with the esteemed Bitcoin Magazine. He was quick to find out the scripting difficulties of Bitcoin and he even presented a lengthy white paper detailing his views in 2013. He advocated for a state of the art scripting language to overcome the persistent scripting issues of Bitcoin. But his views did not receive consent in the Bitcoin community.

The denial inspired him to come up with a completely new blockchain platform equipped with more general and better scripting abilities- and thus Ethereum was born. The word “Ethereum” was derived from the term “Ether”. The public announcement of Ethereum was made in 2014 and that year only the development of the software project started. Renowned Swiss tech firm, Ethereum Switzerland GmbH was at the helm of the developing the project. The Ethereum team took to crowdsale to fund the project in July & August, 2014. The project was made live in 2015, with around 11.9 million ETH coins “premined” especially for crowdsale. At present, Ethereum’s value has grown over to 13,000%.

Use cases for ETH

Ethereum is a functional cryptocurrency and commands several use cases-

For bank & finance sector

The ETH smart contracts assure multiple use cases in the fiscal and banking sector. These smart contracts are easily applicable in various relevant areas including- mortgages, national bonds, isnuyrance claims, settlements and payments.

For ICOs and DAICOs

The smart contracts of Ethereum can make the whole ICO process more transparent, democratic and effective. DAICO is a hybrid of ICO and DAO. When these smart contracts are deployed in DAICO model, they help to keep tab on developers to ensure they don’t gobble up the entire contributed sum.

Escrow replacement

You can use smart contracts now to get rid of middlemen in the escrow space. Smart contracts are able to effectively replace these middlemen.
Prediction markets

Prediction platforms can be built on Ethereum blockchain and today we can already see a few of such advanced platforms. These platforms pay participants using smart contracts for accurate predictions.