Ethereum is a smart contract based platform, which has it's own cryptocurrency called ether.
The Ether token is used to compensate the nodes for the computations performed. When you send ethereum, a 'gas' fee is taken from your balance, which will mitigate spam so that they can focus their resources on the ethereum network.
The ethereum network runs with the algorithm: daggerhashimoto (AKA eth hash) which is can be used to mine ether tokens, unlike the SHA-256 algorithm, daggerhashimoto can be used with an ASIC and GPU miners.
ethereums origin:
Vitali buterin, a programmer, described ethereum on his whitepaper, which his goal was to create decentralized apps (Dapps). The project to develop the ethereum core software began in 2014 by the Swiss company:ethSuisse, who also created the ethereum foundation.
The fundings for the development of ethereum came from a crowdsale that started in July-August 2014 by letting users to buy ether with bitcoin.
The Ethereum Classic hard fork (ETC)
In 2016, the DAO (the Decentralised Autonomous Organisation) was the smart contracts on the ethereum network, who raised record number of $150 million during their crowdsale. But things took the turn for the worst when DAO got exploited by a anonymous entity who managed to steal $50 million (1/3rd of the amount from the crowdsale). The event sparked a lot of controversy on the cryptocurrency community, and questions raised whether ethereum should get a hard fork or not.
But the network got forked and that resulted in a new cryptocurrency emerging called ethereum classic (ETC).
the events after the hard fork and the creation of 'gas' fees
After the DAO related fork, ethereum forked subsequently in the Q4 of 2016, but in November of that year, ethereum got a better DDOS-protection, and they created 'gas' fees to mitigate the spam attacks of hackers.
i just read your total post but i cant understand the whole process
What do you mean? If there's something on the text that you want me to explain, then feel free to tell me :)
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