Before to understand what is ethereum? It is important to get a concept of bitcoin because it is the basic reason from where ethereum was born. You all better understand from our previous articles that bitcoin is a form of decentralized money. Before the invention of bitcoin, there was the only way of using money digitally through an intermediary such as a bank, or Paypal.
This way, the bitcoin has changed the process of decentralized form of currency that individuals could trade directly without the need for an intermediary. After that, blockchain was introduced. It was a new method of decentralized money. Blockchain is the technology created by fusing already existing technologies such as cryptography, proof of work. Through this, people got very excited or think about what else we can decentralize. Then, ethereum has invented. It is the process of decentralized programs also known as Dapps – decentralized apps.
Ethereum is introduced by a 19 year old Vitalik Buterin in the year 2013. It is a decentralized computing platform, open-source and a public blockchain that has featured turing-complete smart contract functionality. It is a platform that could hypothetically leverage the blockchain execute and to store computer programs across an international network of distributed nodes. Ethereum has become the most trustable and well-known established cryptocurrency outside of bitcoin.
Ethereum has gained a lot of attention from investors and crypto enthusiasts. It has become the second largest market cap in the cryptocurrency world. It is the platform of does it yourself? The clear meaning is no single person can control you. All you have to do is to learn the Ethereum programming language called Solidity and begin coding.
One thing you should understand that ethereum is not a currency, it’s a platform of decentralized the internet. The currency which is used to incentivize the network is called as ether. Today, there is no activity done on the internet like Amazon, Google, Facebook, Netflix and other giants where a third party is not included for a deal. Everywhere, there is a mediator available for making a deal of two persons. But ethereum is the process which allows connecting people directly without any mediator. It saves a lot of money of the peoples. It’s a network of computers that together combine into one powerful, decentralized supercomputer.
A machine named as Ethereum Virtual Machine (EVM) is included in the working of ethereum. It is Turing-complete software that runs on the Ethereum network. All those scripts which are executed across a distributed network of computers, it enables the execution of them and storage of everything from smart contracts to DAOs. Ethereum allows developers to build decentralized applications on top of it functionally. It may be include games, distributed registries, organizations, and many more.
On the basis of white paper, the design of ethereum intended to follow the principles of mentioned below:
Modularity: The protocol of ethereum should be designed to be as separable and modular as possible.
Simplicity: If the cost of data or time is inefficiencies then the protocol must be as efficient as possible.
Agility: The protocol is not set in any stone and any opportunities to improve the protocol architecture or the EVM in scalability or security will be exploited.
Non-Discrimination/Non-Censorship: The protocol should not secure any particular categories of usage or attempt to actively restrict.
There are lots of benefits of ethereum, not only as a blockchain-based platform itself but also compared to other blockchain-based platforms includes:
Immutability: Now, no third party can able to change the data.
Corruption/Tempor proof: Censorship is unfeasible with the PoW consensus of the vast and decentralized network agreeing on its global state.
Security: There are lots of contracts which will become secure like combination of the PoW consensus, cryptographic techniques used in the transaction model, and lack of a central point of failure protects the network against hacking and manipulation.
No Downtime: Applications, smart contracts, organizations, etc, these all will run on the Ethereum blockchain are always running and cannot be turned off.
There is no one which can take place of ethereum alongside Bitcoin, as the center of the cryptocurrency world. It is completely irreplaceable. The future of ethereum is as bright as standards have been raised, standards are being proposed. There is a huge number of the community of developer and different types of other contributors behind it. Many vocals and talented leader in Vitalik Buterin leading. So, we can aspect that the future of ethereum is as bright as today.
Ethereum also included huge number of future technologies they are actively or potentially developing that includes:
Ethereum is one of the most important and popular platform in the blockchain/cryptocurrency industry today. As there are so many space tech and other organizations is adopting ethereum process adoption becomes more mainstream, and scaling solutions are implemented, Ethereum looks to remain the distributed world computer for the decentralized applications of tomorrow.
I am a freelance blockchain writer. Having 4 years of experience in blockchain industry, I have written many articles and blogs on cryptocurrency. My goal is to work with dedication, deliver accurate and transparent information that helps to companies and users to grow.