Aetherium is also an open source project, which is based upon the blockchain technology. aetherium enables developers to build and deploy decentralized applications, like smart contracts. What are smart contracts? smart contracts are similar to legal contracts where you can perform business logic, or provision rules and regulations between two or more parties vitalik butor and developed aetherium in the year 2013, vitalik butor in was one of the initial coders for the Bitcoin blockchain. But soon after working with the Bitcoin blockchain, he realized that Bitcoin blockchain has various limitations for the users. Our Bitcoin, every participant needs to adhere to the rules and regulations as per the whole chain.

So he developed a theorem blockchain where you can set up rules and regulations between two or more users, instead of letting all the users follow the same set of rules. Ethereum blockchain uses the principle of aetherium virtual machine, which is a decentralized virtual machine similar to Java Virtual Machine. Ethereum virtual machine computes and compiles the smart contract code, and makes the code available to users to run the functions. A public crowd sale initially funded aetherium in 2014, where ether tokens were issued to the people providing the funds. The first beta release of aetherium network was known as Olympic which came up with a bug bounty of 25,000 ethers for testing the limits of Ethereum blockchain. The next aetherium live blockchain was named as frontier and was launched in 2015.

This was a stable version for aetherium. The current milestone of aetherium is known as homestead, which is also considered a stable release and offer various improvements such as transaction processing, gas pricing, and security on top of the classic aetherium blockchain currently, two more updates are planned for aetherium blockchain. And these updates are going to lead the Ethereum blockchain to a hard fork, as these upgrades plan to bring in the proof of stake consensus algorithm, replacing the proof of work consensus algorithm over the Ethereum blockchain