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Ethereum is an open sourcepublicblockchain-based distributed computing platform and operating system featuring smart contract (scripting) functionality. It supports a modified version of Nakamoto consensus via transaction-based state transitions.

Ether is the cryptocurrency generated by the Ethereum platform as a reward to mining nodes for computations performed and is the only currency accepted in the payment of transaction fees.[2]

Ethereum provides a decentralized virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes.[3] The virtual machine’s instruction set, in contrast to others like Bitcoin Script, is Turing-complete. “Gas”, an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.[3]

Ethereum was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer. Development was funded by an online crowdsale that took place between July and August 2014.[3] The system then went live on 30 July 2015, with 72 million coins minted.[4][5] This accounts for about 68 percent of the total circulating supply in 2019.[6][non-primary source needed]

In 2016, as a result of the exploitation of a flaw in The DAO project’s smart contract software, and subsequent theft of $50 million worth of ether,[7] Ethereum was split into two separate blockchains – the new separate version became Ethereum (ETH) with the theft reversed,[8] and the original continued as Ethereum Classic (ETC).[9]

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