Ethereum, as simply put, is an open blockchain-based distributed computing platform and operating system featuring smart contract functionality that allows developers to create and deploy decentralized applications.
Ethereum Vs. Bitcoin
Ethereum and Bitcoin are both a distributed public blockchain network, but they are different when it comes to their purpose and capability.
First of all, Bitcoin blockchain is utilized to track ownership of digital currency (bitcoins), while the Ethereum blockchain concentrates on managing the programming code of any decentralized application.
Instead of mining for Bitcoin, miners work to earn Ether. Ether is a type of crypto token that fuels the network. It is also used by application developers to pay for transaction fees and services on the Ethereum network.
Ethereum Smart Contract
The smart contract is a self-operating computer program that automatically performs without the need for a trusted third party to hold the money and sign off on the transaction. It represents computer code that can facilitate the exchange of money, shares, content, property, or anything of value.
Ethereum Virtual Machine
The Ethereum Virtual Machine, also known as EVM, concentrates on giving security and executing untrusted code by computers worldwide. Secured communication can be established without any potential interference or manipulation from a third party.
Use Of Ethereum
Ethereum basically allows developers to build and deploy decentralized applications.
Decentralized application or Dapp are made up of code that runs on a blockchain network. It is not easily manipulated by an outside force. Any services that are centralized can be decentralized with Ethereum.
Benefits Of Ethereum’s Decentralized Platform
- The immutability wherein an outside or a third party cannot change any data.
- Apps are based on a network designed around the principle of consensus, making censorship difficult.
- The heightened security wherein applications are fully protected against hacking attacks and fraudulent activities.
- Apps are on the go and can never be switched off.
Apps Being Developed On Ethereum
Since Ethereum platform is also a tool to create applications across a wide range of services and industries. Here are a few interesting projects.
- Weifund offers an open platform for crowdfunding campaigns that holds smart contracts.
- Uport offers users with a secure and convenient way to take full control of their identity and personal information.
- BlockApps offers the easiest way for enterprises to build, manage and deploy blockchain applications.
- Provenance is using Ethereum to make vague supply chains clearer.
- Augur is an open-source prediction & forecasting market platform that enables anyone to predict events and get rewarded for foretelling them accurately.
Ethereum looks to have a bright future in the long run. With many of the compelling applications soon to be developed, we can only imagine the unexpected possibilities that await.
Meanwhile, latest on the crypto news, Ethereum is one of the most formidable, and ambitious, blockchain projects. Now that the firm has set up its “Layer One”, what’s next? Joseph Lubin declared in a speech at Hong Kong’s Rise conference that 2018 is the year we catch a glimpse of Ethereum’s Layer Two systems mature.