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These are the user uploaded subtitles that are being translated: 1 00:00:00,570 --> 00:00:04,170 Now that we've gotten through some administrative work, it's time to start learning about a theory 2 00:00:04,380 --> 00:00:09,270 and using it to build actual applications in the section, we're going to start off with a little bit 3 00:00:09,270 --> 00:00:10,200 of a history lesson. 4 00:00:10,830 --> 00:00:16,290 Normally, for any technology that you learn, the history of how it was created is not always super 5 00:00:16,290 --> 00:00:16,790 important. 6 00:00:17,400 --> 00:00:22,930 For example, when you learn about HTML, you don't always learn about who first created HTML. 7 00:00:23,490 --> 00:00:29,040 However, in the world of Ethereum, development is changing so rapidly at this point in time that I 8 00:00:29,040 --> 00:00:34,200 think getting an idea of why, if the dream was created, can serve to help you understand about what 9 00:00:34,200 --> 00:00:36,050 the project is and where it's headed. 10 00:00:36,690 --> 00:00:38,820 So little history lesson here. 11 00:00:39,150 --> 00:00:42,650 We're going to first start off back in October 31st, 2008. 12 00:00:43,200 --> 00:00:47,200 This is the first notable event and it's not actually tied to a theory at all. 13 00:00:47,850 --> 00:00:51,810 Instead, this is the date of the original Bitcoin white paper. 14 00:00:52,260 --> 00:00:53,970 We refer to it as a white paper. 15 00:00:54,000 --> 00:00:56,310 It essentially was a academic paper. 16 00:00:56,820 --> 00:00:59,040 It was released by Satoshi Nakamoto. 17 00:00:59,610 --> 00:01:05,190 The paper described the creation of a system that would allow people to pay each other directly without 18 00:01:05,190 --> 00:01:10,560 the need for a central authority like a bank out of this paper. 19 00:01:10,770 --> 00:01:18,120 The Bitcoin network was eventually brought online in January of 2009, and this is the original Bitcoin 20 00:01:18,120 --> 00:01:18,570 network. 21 00:01:19,230 --> 00:01:23,900 One of the key characteristics of the Bitcoin network was the idea of a block chain. 22 00:01:24,450 --> 00:01:27,990 We'll talk about block chains in great detail throughout this course. 23 00:01:28,200 --> 00:01:34,890 But for now, just understand that the Bitcoin block chain was a tool to store a list of monetary transactions 24 00:01:34,890 --> 00:01:36,120 between different people. 25 00:01:37,290 --> 00:01:40,360 The Bitcoin network thrived and continues to thrive today. 26 00:01:40,980 --> 00:01:46,080 However, the only purpose of Bitcoin was to enable financial transactions. 27 00:01:46,080 --> 00:01:46,680 That was it. 28 00:01:46,800 --> 00:01:49,320 Send money from person to person B. 29 00:01:50,100 --> 00:01:56,430 Not long after its release, many people realized that they could use some of Bitcoins original innovations 30 00:01:56,730 --> 00:02:02,150 to not only handle the transfer of currency, but other types of exchanges as well. 31 00:02:02,910 --> 00:02:07,950 So one person who felt very strongly about this was named Retallack Budarin. 32 00:02:08,580 --> 00:02:10,970 The talent authored a white paper of his own. 33 00:02:10,979 --> 00:02:17,460 Again, a white paper is essentially an academic document, and he published it back in late 2013. 34 00:02:19,320 --> 00:02:24,780 Metalic was a proponent of the Bitcoin project, but he thought that the Bitcoin project was too simple 35 00:02:24,780 --> 00:02:25,350 in nature. 36 00:02:25,860 --> 00:02:31,750 He envisioned using block to block chain technology to create far more complex applications. 37 00:02:32,190 --> 00:02:39,120 In fact, he describes using a theorem to create sub crypto currencies, domain name registration systems 38 00:02:39,360 --> 00:02:40,980 and gambling applications. 39 00:02:41,460 --> 00:02:43,560 So the italics ideal world. 40 00:02:43,710 --> 00:02:46,140 He didn't want to just use Bitcoin to transfer money. 41 00:02:46,410 --> 00:02:51,930 He wanted to figure out some way to use these innovations to create much more advanced applications. 42 00:02:52,230 --> 00:02:54,420 And that's what we are here in this course to do. 43 00:02:54,450 --> 00:02:58,440 We're going to use this technology to build more advanced applications. 44 00:02:59,520 --> 00:03:04,440 Now, inside of his white paper Vitello, it goes on to describe the most important part of the theorem 45 00:03:04,440 --> 00:03:07,710 network, something called a smart contract. 46 00:03:08,370 --> 00:03:13,050 A smart contract is a piece of code that lives in the theory and block chain. 47 00:03:13,830 --> 00:03:19,650 This contract can be instructed to do certain things by having a person or another contract send a message 48 00:03:19,650 --> 00:03:20,060 to it. 49 00:03:20,850 --> 00:03:27,600 These contracts are at the absolute core of what a theorem is and really spending the vast, vast majority 50 00:03:27,600 --> 00:03:30,600 of this course to learn about the behavior of these contracts. 51 00:03:31,740 --> 00:03:38,070 The theorem system eventually went online on July 30th of 2015, and it also continues to flourish to 52 00:03:38,070 --> 00:03:38,460 this day. 53 00:03:39,540 --> 00:03:39,920 All right. 54 00:03:39,920 --> 00:03:41,160 So that's a little history lesson. 55 00:03:41,160 --> 00:03:46,080 Again, we don't usually talk too much about the history of the technology we use, but I wanted to 56 00:03:46,080 --> 00:03:52,230 share this short creation story with you just to highlight the fact that at the very point of its inception, 57 00:03:52,470 --> 00:03:58,590 the etherial network was designed around this idea of smart contracts that operate on a block chain, 58 00:03:58,860 --> 00:04:03,180 and their purpose is to allow for the creation of advanced applications. 59 00:04:03,990 --> 00:04:08,610 Now that we have a sense of one of the design goals of a theorem, let's continue in the next section 60 00:04:08,610 --> 00:04:11,280 and start getting some experience with the Ethereum network. 6285

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