Just before last New Year’s, 19-year-old Vitalik Buterin, a Canadian college dropout and Bitcoin enthusiast, had an idea. By the end of last week, that idea had attracted more than $5 million in the first week of its pre-sale — a new kind of crowdfunding that crypto-currency makes possible. Not bad, especially considering that nobody knows whether the idea will really work.
Buterin’s idea was Ethereum, a platform designed to be what Bitcoin is to money for just about everything else. Bitcoin works by spreading the currency's entire history of transactions — the blockchain, it's called — out across the whole network of its users. Rather than just recording transactions, Ethereum's blockchain would be able record and execute any program you can code. Bitcoin is a pretty interesting fish, but Ethereum is poised to be the whole ocean. Voting systems, file storage, financial instruments, all sorts of contracts — these things and more could become cheaper, faster, and more widely accessible over a distributed network.
In theory, it could transform the architecture of the Internet and the infrastructure of the economy. In practice, who knows.