🌟 Ethereum (with Packy McCormick)

Continuing our trend of picking some lefter-field topics, here we have another from the Acquired team. It’s less about product but pretty interesting nontheless. It’s obviously close to home for me and what with Bitcoin’s ETF approvals last week it seemed a good time to include it.

Why? Well, if you were impressed by Mark Zuckerberg taking Facebook public with a $100 billion valuation at 27, prepare to be amazed by a high school junior who, by the same age, generated a staggering $500 billion in market capitalisation. This story isn't just about financial milestones; it's also about potentially challenging the dominance of major tech giants like Facebook, Google, and Amazon. Whether you're new to cryptocurrency, an enthusiastic supporter, or a cautious sceptic, this is a story you need to hear, and Ethereum is an innovation you need to understand.

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📆 Published: July 6th, 2021

🕒 Estimated Reading Time: <2 mins. Time saved: 178 minutes🔥 

🎯 The Genesis of Ethereum

As a high school student, Vitalik Buterin was deeply involved in the Bitcoin community. He had a keen interest in earning Bitcoin and writing about the emerging technology. This led him to join the BitcoinTalk forums, where he quickly made a name for himself with his insightful posts and technical expertise.

In 2011, Vitalik co-founded Bitcoin Magazine, a publication dedicated to covering the latest developments in the Bitcoin space. Through his work at the magazine, he became acquainted with various projects in the Bitcoin 2.0 movement, which aimed to build additional functionality on top of the Bitcoin network.

However, Vitalik soon realised that these projects were only scratching the surface of what could be achieved. He saw the potential for a truly decentralised and programmable platform that could support a wide range of applications beyond just currency. This idea sparked the birth of Ethereum.

🧠 The Ethereum White Paper

In November 2013, Vitalik wrote the first draft of the Ethereum white paper. He outlined his vision for a platform that would enable the creation of decentralised applications (DApps) and smart contracts. These smart contracts would be self-executing agreements with the terms of the agreement directly written into code.

Vitalik's white paper caught the attention of the crypto community, and he received an overwhelming response from people who were excited about the project. This led to the formation of a core group of individuals who would work together to turn Vitalik's vision into a reality.

🤖 The Core Team and Development

The core team consisted of Vitalik Buterin, Mihai Alisie, Amir Chetrit, Anthony Diorio, Charles Hoskinson, Gavin Wood, and Jeff Wilke. Each member brought their unique skills and expertise to the project.

Gavin Wood and Jeff Wilke were tasked with developing the Ethereum client, the software that would run on the Ethereum network. Gavin worked on a C++ implementation, while Jeff focused on a Go implementation. This redundancy proved to be a wise decision, as it ensured that any misimplementation in one language would not affect the entire network.

🚀 The Launch of Ethereum

In January 2014, the team gathered at an Airbnb in Miami ahead of the Miami Bitcoin Conference. They decided that this would be the perfect opportunity to announce and launch Ethereum to the world. Vitalik was scheduled to give a talk at the conference, although initially, he was not given a main stage slot.

Despite the initial challenges, the team was determined to make Ethereum a success. They believed in the potential of the platform to revolutionise the way we think about blockchain technology. With their combined efforts, they were ready to introduce Ethereum to the world.

💥 The Impact of Ethereum

Since its launch, Ethereum has had a profound impact on the blockchain and cryptocurrency industry. It has become the foundation for countless decentralised applications and smart contracts. Developers from around the world have flocked to the platform, leveraging its capabilities to build innovative solutions.

One of the most notable examples of Ethereum's impact is the rise of decentralized finance (DeFi). DeFi applications, built on the Ethereum network, have transformed traditional financial services by providing open and permissionless access to financial products and services.

Additionally, Ethereum has paved the way for the concept of decentralised autonomous organizations (DAOs). These organisations operate without a central authority and are governed by smart contracts. DAOs have the potential to revolutionise traditional organisational structures and create new models of governance.

🧠 What can I do with this as a founder or PM?

OK so what should you think about taking away as a Product Manager or founder?:

1. Understand the potential of Ethereum: Ethereum is not just a cryptocurrency, but a decentralised computer that allows for the execution of smart contracts. This opens up a wide range of possibilities for building decentralised applications and creating new business models.

2. Explore the concept of smart contracts: Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They can automate processes, eliminate intermediaries, and provide transparency and security. Consider how smart contracts can be applied to your product or business to streamline operations or create new opportunities.

3. Evaluate the benefits and challenges of decentralisation: Ethereum's distributed nature offers benefits such as increased security, censorship resistance, and elimination of single points of failure. However, it also presents challenges such as scalability, network congestion, and potential security vulnerabilities. Assess whether the decentralised nature of Ethereum aligns with your product goals and consider the trade-offs involved.

4. Stay informed about the Ethereum ecosystem: Ethereum has evolved significantly since its inception, and it continues to be a dynamic and rapidly changing space. Stay updated on the latest developments, including new protocols, tools, and applications being built on Ethereum. This can help you identify potential partnerships, integration opportunities, or areas for innovation within your product.

5. Consider the broader implications of blockchain technology: Ethereum is just one example of how blockchain technology can revolutionise industries beyond finance. Explore how blockchain can be applied to your specific industry or use case, whether it's supply chain management, identity verification, or data privacy. Assess the potential benefits and challenges of implementing blockchain solutions in your product or business.

In conclusion, Ethereum's journey from a bold idea to a world-changing platform is a testament to the power of innovation and collaboration. Vitalik Buterin and the core team's vision and dedication have reshaped the blockchain landscape, opening up new possibilities for decentralised applications and smart contracts. Ethereum continues to evolve and inspire the next generation of blockchain projects, pushing the boundaries of what is possible in the world of technology and finance but now also has a host of challengers snapping at its heels.

I’ll cover one of those (Solana) in a future post.

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