332: Ethereum: The World’s Computer
When trust becomes programmable—agreements run on code, not promises
With Crypto back in the hype cycle, I thought of sharing my understanding of one of the technologies in the crypto ecosystem, which I find fascinating. Etherium - The World’s Computer!
Over the past decade, Ethereum has experienced remarkable growth. Launched in July 2015, Ethereum's price started at approximately $0.80 per ETH. As of August 26, 2025, the price has surged to around $4,461.77 per ETH, reflecting an increase of over 550,000%. Ethereum's market capitalization has expanded from about $18 million to approximately $535.93 billion.
Vitalik Buterin, now a legend in the developer community, was born in 1994 in Russia to tech-savvy parents—his father a computer scientist, his mother involved in finance. When the family moved to Canada, they encouraged his curiosity. As a teenager, Vitalik discovered Bitcoin and began asking a bigger question: What if blockchain could do more than move money? What if it could run programs anyone could access, without relying on banks or governments?
Around 2012, at the same time, hobbyists were using tiny, $35 Raspberry Pi computers to build everything from robots to weather stations. These small, accessible devices taught a generation that powerful things could be built with inexpensive, open tools. Ethereum aimed to do the same—but on a global scale, with money, contracts, and digital communities. Vitalik Buterin published the Ethereum white paper in late 2013, and the network officially launched on July 30, 2015.
Ethereum is a blockchain like Bitcoin, but with an upgrade: it doesn’t just record transactions; it runs smart contracts. A smart contract is a self-executing agreement written in code. Decentralization also makes Ethereum remarkably resilient: no single country, company, or server can shut it down, because thousands of computers around the world collectively maintain the network. This is what earns it the name “world computer”—anyone, anywhere, can run programs and enforce agreements without relying on a central authority. Unlike traditional systems, where a government or company can block services, censor transactions, or seize servers, Ethereum operates on a global, distributed network that keeps running even if parts of it go offline.
To make this work, Ethereum originally used a system called Proof of Work—computers solved puzzles to validate transactions, like miners digging for digital gold. But this consumed enormous energy. In 2022, Ethereum switched to Proof of Stake, where participants lock up some of their Ether (its native currency) as collateral. If they play fair, they earn rewards; if they cheat, they lose their stake. It’s a system of carrots and sticks that keeps the machine running smoothly with far less electricity.
Why does this matter for ordinary people? Because history tells us that when shared, low-cost platforms appear, entire industries are born. Think of the personal computer in the 1980s—once a geeky hobby, it fueled the growth of Microsoft, Apple, and the modern office. Think of the internet in the 1990s—initially dismissed as “just email,” it rewired commerce, media, and communication. Ethereum could be the next chapter in that lineage: a programmable layer for trust.
If this sounds too abstract, consider Kenya’s M-Pesa. Long before Silicon Valley embraced mobile payments, Kenyan telcos let people send money via SMS. With no need for bank accounts, M-Pesa gave millions their first access to digital finance. Street vendors could accept payments instantly; families could send money safely across villages. It wasn’t called “blockchain,” but it was the same principle: leapfrogging old infrastructure with a new shared system. Ethereum has the potential to do this globally, not just with payments but with law, contracts, identity, and ownership.
Competitors exist—Solana, Cardano, Polkadot, and others are racing to build faster or more specialized blockchains. But Ethereum has the first-mover advantage and, more importantly, the largest community of developers. Just as Windows became dominant not because it was perfect, but because everyone built software for it, Ethereum benefits from the network effect.
So what could the future look like? Imagine:
Healthcare: Your medical records follow you securely, accessible by any doctor with your consent.
Real Estate: Buying land or a home is instant, with no middlemen, fraud, or endless paperwork.
Creativity: Musicians, writers, and artists earn royalties directly every time their work is shared, without relying on opaque intermediaries.
Governance: Communities vote on budgets and rules transparently, with outcomes enforced automatically.
Ethereum may still feel experimental, like a Raspberry Pi compared to a modern laptop. But that’s the point: experiments at the edges grow into revolutions at the center. Just as M-Pesa showed how one innovation could transform daily life in Kenya, Ethereum is showing how programmable trust might reshape the entire global economy.
The story isn’t finished—but if history is any guide, when ordinary people gain access to powerful new tools, industries shift, and the world changes.