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Homeopathy has originated from Greek word homoeos means similar or like,  pathos means suffering & so the combination of these two words means Similar Suffering. 

Homeopathy is a system of drug therapeutics based on law of similars. It was discovered by Samuel Hehneman in 1976 in 'An essay on a new principle for ascertaining the creative powers of the drug'

Advantages of Homeopathy

• It treats the individual as a whole

• Individualisation is given importance

• They use minimum potentized dose

• Homeopathy practices monophaenacy

• Drugs are proved on healthy human beings

• It is based on the natures law of cure

• It believes on vital force which animates the material organism

• Removes side effects of other pathy & give no side effects but only rapid, gentle permanent cure.

 
Discovery

In 1790, Samuel Hehneman was translating from English to German of William Cullen's "A Treatise On Maleria Medica. It was written that cinchona cures malaria because of its bitter taste and tonic effects. But he thought there were many substances which had bitter taste but did not cure Malaria. So he drank two  drachms. of cinchona & he found that he was attacked by symptoms to that of Malaria. This is how he derived Homeopathy. 

Also Check Better Health - The Ayurvedic Way.