What is Ethereum?
Ethereum is a cryptocurrency which is getting popular day by day making itself to top. Ethereum was created in 2015 by Vitalik Buterin and Joseph Lubin. Ethereum is based on block chain technology which enables secure, transparent and timber proof transactions. It is a second major innovation is blockchain after Bitcoin. While bitcoin can be described as digital money, Ethereum is a decentralized app for programming digital money. Both Bitcoin and Ethereum are often compared to each other, but, the two were designed with different vision and goals. Bitcoin is an established cryptocurrency used for trading, Ethereum is a multipurpose platform with its digital currency as the fuel for Smart Contracts functionality.
Ethereum is a public, open-source distributed computing platform that uses blockchain technology to create decentralized applications. What is Ethereum? – Ethereum Icon. Therefore, prior to the development of Ethereum, blockchain applications could only perform a relatively small number of functions. For instance, peer-to-peer digital currencies like Bitcoin and other cryptocurrencies were created specifically for this purpose.
Ethereum was intended by Vitalik Buterin to serve as a platform for programmers to create blockchain-based applications. He modified Bitcoin’s Blockchain architecture and protocols to accommodate applications other than currency issuance in order to achieve his goal.
The term “World Computer” refers to the fact that anyone in the world can connect to the Ethereum blockchain to create a software and maintain the network’s present state. It can basically create a Programmable contract between peers.
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.
Why blockchain is important? Business runs on information. The faster it’s received and the more accurate it is, the better. Blockchain is ideal for delivering that information because it provides immediate, shared and completely transparent information stored on an immutable ledger that can be accessed only by permissioned network members. A blockchain network can track orders, payments, accounts, production and much more. And because members share a single view of the truth, you can see all details of a transaction end to end, giving you greater confidence, as well as new efficiencies and opportunities.
The native token used by Ethereum, called, has two primary functions.
- Applications must be paid in ether for all operations in order to prevent the spread of harmful and defective software.
- Similar to how the bitcoin network is set up, miners that donate resources to the Ethereum network are paid with ether as an incentive.
Ethereum uses a coin called “gas” to do computations each time a contract is executed. Every action taken on the Ethereum blockchain requires the payment of gas. The miners set the price, which is stated in ether, and they have the option to reject a transaction if the gas price is too low.
Ethereum can be used to create applications called D-apps or Decentralized apps.
DECENTRALIZED APPLICATIONS (D-APPS)
- DApps are computer applications that operate over a blockchain enabling direct interaction between end users and providers
- It can be comprised of single DAO or even a series of DAO that work together to create an application
The dispersed computer nodes of the network serve as a means of facilitating the spread of this data when a user has to exchange Ether in order to settle a contract with another user.
WHAT WILL BE ETHEREUM BE USED FOR
Aside from all the things mentioned above there are millions of things Ethereum can be used for millions. By creating D-apps which can be further used to disrupt hundreds of establishment industries like
- REAL ESTATE
And much more like these. It’s safer to state that the future of Ethereum as a platform appears to be quite promising given the current technological trends and achievements. The blockchain community will continue to thrive as long as business and developers continue to put their money, time, and faith in the technology.