The evolution of the wave function in quantum mechanics is deterministic like that of classical waves. Only when we bring in observers the fundamentally different quantum reality emerges. Similarly the introduction of observers changes the nature of spacetime by causing a split between past and future, concepts that are not well defined in the observer-free world. The induced temporal boundary leads to a resonance condition for the oscillatory vacuum solutions of the metric in Euclidean time. It corresponds to an exponential de Sitter evolution in real time, which can be represented by a cosmological constant , where r u is the radius of the particle horizon at the epoch when the observer exists. For the present epoch we get a value of Λ that agrees with the observed value within 2σ of the observational errors. This explanation resolves the cosmic coincidence problem. Our epoch in cosmic history does not herald the onset of an inflationary phase driven by some dark energy. We show that the observed accelerated expansion that is deduced from the redshifts is an ‘edge effect’ due to the observer-induced boundary and not representative of the intrinsic evolution. The new theory satisfies the BBN (Big Bang nucleosynthesis) and CMB (cosmic microwave background) observational constraints equally well as the concordance model of standard cosmology. There is no link between the dark energy and dark matter problems. Previous conclusions that dark matter is mainly non-baryonic are not affected.