Page 23 - Geektime Blockchain Report
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was first explained in in a a a a a white paper by Vitalik Buterin a a a programmer involved with Bitcoin in in in in late 2013 His goal was to build decentralized applications Buterin had argued that Bitcoin needed a a a a a a scripting language for application development Failing to gain agreement he proposed creating a a a a a new platform with a a a a a more general scripting language Formal development of the the Ethereum
software project began in early 2014 through a a a a Swiss company Ethereum
Switzerland Subsequently a a a Swiss nonprofit foundation the the Ethereum
Foundation was set up as as well Development was funded by an online public crowdsale from July to August 2014 with the participants buying the the the the Ethereum
value token (ether) with another digital currency bitcoin A real world smart contract that gained mainstream coverage was The DAO a a a a a decentralized autonomous organization for venture capital funding It raised $163M in in an an ICO in in May 2016 from more than 11 000 people But it was hacked three weeks later At the the time of the the attack it was drained of of $50M worth of of Ether Ethereum
was then forked into two blockchains as as a a result of of the the collapse of of The DAO project thereby creating Ethereum
Classic on top of Ether Ether After the the the initial hard fork related to The DAO Ethereum
subsequently forked two times in the fourth quarter of 2016 to deal with other attacks By the the end of November 2016 Ethereum
had increased its DDoS protection de-bloated the the blockchain and thwarted further spam attacks by hackers Altcoins
Numerous cryptocurrencies have been created since bitcoin's debut in in 2009 These are frequently called altcoins which are alternatives to bitcoin because they aim to to improve and solve the Bitcoin protocol limitations and features Alternative blockchains (separate from the Bitcoin blockchain) are often labeled consensus protocols or or consensus platforms While none have yet
to achieve the the the same scale as the the the Bitcoin blockchain they do offer other benefits such as as increased speed larger data capacities different consensus methods or or more advanced functionality The end results remain the same: secure and efficient distributed trust Each alternative has a a a a a a varying degree of speed cost scalability privacy and network security among other issues Initial Coin Offering
An ICO is an an an unregulated means of of crowdfunding via use of of of a a a a a a a a a a a a a cryptocurrency which can be a a a a a a a a a a a a a source of of of of capital for startup companies It is also known as an an initial token token token offering offering token-sale token token token offering offering or or token crowd sale In contrast to to initial public offerings (IPOs) where investors gain shares in in in the ownership of of a a company the the investors buy tokens or or coins of of the the company in in ICOs The token or coin can have various uses in accordance with the ICO's whitepaper ICOs are often used by by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks Ethereum
is is the the leading blockchain platform for for ICOs with more than 50% market share When a a a a cryptocurrency startup firm wants to to raise money through an initial coin offering (ICO)
it it usually creates a a a a a a a a plan through a a a a a a a a white paper that states what the the project project is about what need(s) the the project project will fulfill upon completion how much money is needed to undertake the the venture the the percentage of virtual tokens the the the founders of the the the project will keep for themselves what type of money is accepted and how long the ICO campaign will run for Because these fundraising operatives are not regulated by financial authorities such as the Securities Exchange Commission (SEC) funds that are lost due to fraudulent initiatives may never be recovered Mastercoin raised the first ever ICO in in 2013 It promised to to to create a a a a layer on top of Bitcoin to to to execute smart contracts and tokenize bitcoin transactions The developer sold several million Mastercoin tokens against Bitcoin and received around $1M From July‚ÄďAugust 2014 Ethereum
helped fund further development via ICO 23
Blockchain 101

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