Vitalik Buterin: Threat to Modern Financial System?
One day a 17 year old guy got acquainted with Bitcoin. And nothing would happen, if it would not be Vitalik Buterin, a young programming genius, who started coding at the age of 10 and whose favorite author was a techno-thriller writer Daniel Suarez. So what happened next?
Vitalik was really enthusiastic about how the Bitcoin blockchain is working. In 2012 he even founded a magazine about crypto-currency “Bitcoin Magazine”. Soon Buterin understood that the principle of blockchain can be used not only for the payment system. In the age of 19 he dropped out University of Waterloo and went on a half a year trip around the world for his Bitcoin savings – to think of his idea on universal register of everything.
Buterin formulated the document which united the ideas from politics, math, game theory, and called his creation Ethereum – in honor of Aristotel’s idea of overall fifth element – ether. The new blockchain ought to become an overall worldwide computer.
After he sounded his idea among the enthusiasts, the team of highly professional programmers gathered to try to implement Buterin’s idea into life. Buterin announced a crowdfunding project of decentralized platform. The fundraising beat all records: the project gathered $18 million in four weeks.
Well, the financial gurus believe that Ethereum is the revolutionary project that has the potential of changing the established world of banks and traditional financial relationships. And Vitalik Buterin, it seems, is going to lead this revolution.
Ambitious Goal of Vitalik Buterin
Young genius Vitalik Buterin is a Russian guy, living in Canada from age of 6. His children’s “toys” were Excel tables, where he was exploring the world with the help of statistical analysis. His first acquaintance with coding happened in the age of 10 from C++ - Vitalik wrote his first game. By the end of school Buterin coded several games, from simple versions to quite serious 3D-project. Vitalik says that his first game had only five users, next ones – several hundreds. But his goal was creating something that would have millions of users. And, it seems, he achieved his goal.
Buterin’s idea about Ethereum would sound like utopia, if it was not about the team of extremely talented programmers headed by Vitalik.
In 2009 the world market saw an openly distributed code of unusual digital currency – Bitcoin. Bitcoin didn’t have a single emission center, nor had it a server where the data were collected and processed. Fast, free, safe and belonging to no one – these principles seemed quite promising to Vitalik. So he decided to make the Bitcoin idea as abstract as possible – so that its principles could be used to any project.
In 2013, the first lines of Ethereum code were written. And soon the project became interesting for many investors. However, Buterin didn’t feel enthusiastic about it – he believed that the project on this market must remain independent. However, money was needed anyway, and Ethereum started to produce and sell its own crypto-currency – Ether. The trading showed the real position of the Ethereum on the market – people are really enthusiastic about the project. Ethereum became one of the highest funded crowdfunding projects ever.
Why people buy coins of some unknown company, you may ask. Well, imagine you’re a talented musician. On Facebook, people like your page, showing their interest and admiration. Ethereum gives you the possibility to create your own crypto-currency, and people, by buying it, show their interest, just like “liking” your page on Facebook. However, the second option is advantageous for you and your fans, and not for Facebook (on your popular page, liked by many users, Facebook puts the ad and has money from it, you have nothing). Vitalik created something that is really admired by public, and that’s why Ether gathered $12 million in just 42 days. It seems, his initial goal of having millions of followers, is fulfilled.
Buterin’s Speech in Coinbase Headquarters
Vitalik Buterin, the founder of Ethereum, has given a presentation at Bitcoin exchange Coinbase headquarters, during which he explained his further vision of the project development.
The presentation of the Ethereum happened several days after the release of Homestead, the first stable version of platform protocol, and caused multiple discussions in crypto-currency communities.
One of the most popular rumors became the possible integration of Ether tokens into Coinbase platform. The presentation was visited by the Coinbase founders Brian Armstrong and Fred Ehrsam, which has increased the interest to the possibility of such integration, however, no official announcements were given.
During his speech Vitalik Buterin told about the past, present and future of the Ethereum. In addition, he accented on the differences with Bitcoin, or, as Buterin himself called it “old technologies” and Ethereum.
During the presentation the question of Ethereum network scaling has rose, which was especially interesting for Coinbase representatives. The market value of Ether tokens and increasing interest to platform all over the world, which is reflected by the big amount of events and meetings associated with it, was discussed as well.
According to the witnesses’ words, Buterin completely answered the whole questions, making a very positive impression by his presentation. At the same time he admitted that developers are still to do the hardest work in the future.
Among the main problems that are at work are the possibility of anonymity in the network according to the user’s wish, and the providing evidences of the possibilities of network scaling.
Certainly, among the audience there were skeptics that feel suspicious about everything that isn’t connected with Bitcoin. However, the organizers of the event, and Brian Armstrong personally, demonstrated that they are open to the exception of new vectors in the development of digital currencies, including the creation of new applications.