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15 insights on how Ethereum did its ICO in 2014

Jul 07, 2017 Posted /  6380 Views

15 insights on how Ethereum did its ICO in 2014

15 insights on how Ethereum did its ICO in 2014:

Ethereum is a cryptocurrency based on blockchain technology which was initially proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher, and programmer. Ether is a token of the Ethereum protocol for operating smart contracts on the network. It is an open network managed by the users and network where transaction details are stored in a ledger accessible to all the nodes in the network, just like bitcoin, but with a more sophisticated algorithm. Before Ethereum was invented, the blockchain technology was able to be applied to a very limited number of applications. So the solution was either to expand the set of functions offered by Bitcoin or any cryptocurrency which is a time-consuming task or to develop an entirely new blockchain application and a new platform for it.

Ethereum was the first crypto coin to use an Initial Coin Offering for their crowd funding. The Ethereum ICO happened from 20th July to 2nd September 2014 for a total of 42 days. 31.5k BTC (Bitcoins) or equivalently $18.4 million fiat money was raised during the ICO which makes Ethereum the 6th highest funded ICO till date. Ethereum has increased its market value since it's released and several projects have been built on the Ethereum Virtual Machine, like Singular-DTV, Ardor, Iconomi, etc.

Here are 15 of the insights on how Ethereum held its ICO in 2014:

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1. Ethereum ICO:

The ICO was conducted from 20th July to 2nd September of 2014 ie 42 days. Total supply of the coins was limited to 60,000,000 tokens. 31.5k BTC (Bitcoins) or equivalently $18.4 million fiat money was raised during the ICO which makes Ethereum the 6th highest funded ICO till date.

2. The price of Ether at ICO:

The initial price of Ether was set to a discounted price of 2000 ETH = 1 BTC and happened this way for 14 days before decreasing to a final rate of 1337 ETH per BTC. The sale lasted for 42 days, concluding at 23:59 Zug time September 2, 2014.

3. The algorithm used in Ethereum:

Ethereum works with Proof-of-Work (PoW) blockchain currently, but they are trying to shift to Proof-of-Stake blockchain which will change all the concepts of mining of ETH. By specifically designing the PoW algorithm in an ASIC resistant way, the Ethereum team tries to reduce mining incentives, at least till the PoS algorithm for Ethereum can be designed and applied. Ethereum blockchain has blocks of different sizes. It can process around 25 transactions per second.

4. It's open source:

The algorithm for Ethereum is an open source software which can be accessed by any programmer or developer. It does not need any permission for correcting or improving the code. The projects of many different companies and industries working based on Ethereum can be collaborated and improved the efficiency and quality of all of those projects by this property of Ethereum.

5. Fast transactions compared to bitcoin:

Because of its sophisticated protocol called ghost protocol, the transactions using Ethereum can be very fast, unlike the bitcoins. Due to the different algorithm employed in the mining for Ethereum, transactions can be much faster. In fact, the standard “block” time for Ethereum is almost 12 seconds whereas it is about 10 minutes for Bitcoin. ie Ethereum can be used for fast transactions than any other crypto coin.

6. Messages in Ethereum:

"Messages" in Ethereum are somewhat similar to “transactions” in Bitcoin, but with three important differences. The first difference is Ethereum message is created by either a contract or by an external entity whereas Bitcoin creates its transaction externally only. The second thing is Ethereum messages can sometimes deliver data. Lastly, if it's a contract account, the message recipients can sometimes reply.

7. Smart contracts:

Smart contracts are the exchange mechanisms that control and store the details of the transactions happening between two untrusted parties by digital means or in a digital ledger. In Ethereum, smart contracts are treated as scripts which are autonomous or efficient decentralized applications and they will be stored in the Ethereum blockchain for later execution. Transactions in Ethereum network involves the payment by tokens called ether or more specifically gas.

8. Can be used for multiple applications, not only money transactions:

Bitcoin and other cryptocurrency are used for the exchange of money between two nodes in a network. Etherium can be used for multiple applications without the need for creating different platforms for different applications due to the efficiency of its algorithm. This way Ethereum is solving the most important disadvantage of blockchain technology.

9. Can be created in different programming languages:

Smart contracts are normally created in high-level programming languages and they will be compiled into Ethereum Virtual Machine (EVM) bytecode. This bytecode will be stored in the block chain for later execution. The programming languages commonly used are Solidity, a language similar to C and Javascript, Serpent which is similar to Python, LLL which is an LISP-like language, and Mutan. There is another python based language under construction which is Viper.

10. Decentralisation:

A large network of computers around the world uses the Ethereum and blockchain technology to jointly manage the transactions that occur between two nodes and store the records of those transactions. Decentralization works on a P2P basis and it's not under the control of a central authority like a bank, but controlled by the network.

11. Fraudless transactions:

Fraudproof transactions can be obtained due to decentralized nature of Ethereum network. In Ethereum network, there is no chance for tampering or data loss. Another thing is the proof of the transaction already happened cannot be destroyed even by the data miners or programmers.

12. Security is high:

When we use a bank account, there is some logic for creating transactions on a monthly basis. The code is stored in the bank's computer and there is validations and approval by a central authority. Transactions via Ethereum blockchain are secure because of the concept of smart contracts.

13. No transaction fees:

Since Ethereum uses the EVM for the ether transactions, all the account objects will be in a common execution environment. Accounts will be communicating with each other via transactions. Based on the codes of the accounts, they can act on or ignore communications sent to them. That is, if the address is correct, the transaction occurs or else, it will be ignored.So in this process, there is no transaction fee needed.

14. Intermediaries can be avoided:

The main advantage of Ethereum blockchain is that the intermediaries involved in the traditional transaction systems like lawyers, notary, banks, etc can be avoided. The transactions need no validations from any central authority and it just depends on the network and software.

15. Permissionless transaction:

There is no permission giving central node in the Ethereum network. Everybody who has access to the internet can do a transaction if they have installed the necessary software so that Ethereum can be used for multi-applications without any difficulty. There are a very large number of people who have access to the internet and mobile phones, but they can't just involve in the traditional exchange systems. But Ethereum helps in permissionless transactions.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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