Vitalik Buterin is a name that comes up throughout Ethereum's story. He proposed its initial white paper in 2013, and several co-founders and developers subsequently developed the project. Ethereum began operating in 2015. It is better understood as a public network built by many participants than as a service created entirely by one person.
What if a blockchain could run programs as well as transfer money?
Bitcoin brought attention to transferring value without an intermediary. Ethereum proposed an environment for running a variety of programs on a blockchain. Rules could be written in code and executed and verified in the same way by many participants.
For example, programs can issue tokens, exchange assets under specified conditions or keep records of votes on proposals. DeFi, NFTs and DAOs later became examples of these capabilities in use. This does not mean Ethereum guarantees the quality or safety of every program.
Ethereum and ETH are different
- Ethereum: The network that executes programs and transactions.
- Ether (ETH): Ethereum's native asset, used for transaction fees and participation in network security, among other purposes.
- Smart contract: A program deployed on a blockchain. The word “contract” does not make every piece of code equivalent to a legal contract.
- EVM: Ethereum's program execution environment. Other networks can also use EVM-compatible designs.
Can its creator change it at will?
Vitalik's proposals attract considerable attention, but network changes are not all decided by his word alone. Developers, researchers, node operators and others discuss proposals and choose software. Administrative powers in an individual application should also be distinguished from the process for changing its underlying network.
Ethereum's story is interesting not only for its price but because it broadened the question of what blockchains can do. When researching a project, look beyond a famous founder: examine what it does, who operates it and how much of its code and records you can verify.
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