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**[Ethereum](https://leofinance.io/@crypto-guides/what-is-ethereum-eth)** is an open-source, decentralised blockchain platform that enables the creation of [smart contracts](https://leofinance.io/@leoglossary/leoglossary-smart-contract)	 and decentralised applications (DApps). **Vitalik Buterin**, a programmer and co-founder of [Bitcoin](https://leofinance.io/@leoglossary/leoglossary-bitcoin) Magazine, first proposed it in 2013 as a way to use the blockchain technology that underpins bitcoin to support a broader range of applications than just currency.

Buterin believed that the [blockchain](https://leofinance.io/@leoglossary/blockchain) could be used as a decentralised platform to execute any type of code, not just financial transactions. He believed that the blockchain's adaptability could make it a potent tool for numerous industries, including finance, law, healthcare, and supply chain management.

Buterin and a team of developers began a crowdfunding campaign in 2014 to raise funds for the development of Ethereum. The campaign was successful, raising more than 18 million dollars from backers around the world.

The Ethereum platform was launched officially in July 2015. It was designed to be more versatile and multipurpose than bitcoin, which was primarily intended as a digital currency. Ethereum's adaptability has made it popular among developers, who have used it to create a diverse array of applications, such as financial contracts, prediction markets, governance systems, and even video games.

Since its inception, Ethereum has become one of the world's largest and most influential blockchain platforms. It has inspired the creation of numerous other blockchain projects and helped to popularise the use of blockchain technology beyond the realm of monetary transactions.

The Ethereum network has experienced several significant events in its history, including the introduction of smart contracts, the creation of the [Ethereum Virtual Machine (EVM)](https://leofinance.io/@leoglossary/leoglossary-ethereum-virtual-machine-evm), and the establishment of the Ethereum Foundation, a Swiss non-profit organisation that supports the development of Ethereum. The network has also undergone several [hard forks](https://leofinance.io/@leoglossary/leoglossary-hard-fork), resulting in the creation of new blockchain projects such as [Ethereum Classic](https://leofinance.io/@leoglossary/leoglossary-ethc) (ETC).

In recent years, Ethereum has become a key player in the [decentralised finance (DeFi)](https://leofinance.io/@leoglossary/leoglossary-decentralized-finance-defi) space, with many financial applications being built on the platform. In addition, scalability issues have led to delays and high transaction fees. To address these issues, the Ethereum Foundation has been working on Ethereum 2.0, a major upgrade to the Ethereum network that includes improvements such as [proof-of-stake](https://leofinance.io/@leoglossary/leoglossary-proof-of-stake-pos) consensus and sharding.

Ethereum has also garnered the interest of major corporations, such as JP Morgan and Microsoft, which have investigated the platform's use for various applications. The Enterprise Ethereum Alliance (EEA) was founded in 2017 by a group of Fortune 500 companies dedicated to promoting the adoption of Ethereum in the enterprise sector.

Today, Ethereum is utilised by a variety of organisations and individuals, ranging from Fortune 500 corporations to individual developers working on small projects. It has become a key player in the blockchain industry, and its influence continues to grow as more and more people discover the power of decentralised technologies.

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