Ethereum is a blockchain based cryptocurrency platform which generates cryptocurrency called ether.It is a global, decentralized, open source based platform that features blockchain smart contracts. The code built on ethereum platform , helps build global applications that control the execution of monetary transactions.
It is a platform for 3 of the top 10 currencies running in the marketplace, namely, Tether, Ether (its native cryptocurrency) and bianance coin. It is completely built on open-access infrastructure which is not centrally controlled by any third party organisation. This programmable blockchain was proposed in 2013 and was launched in 2015. Developers use Ethereum to build new applications, also called d-apps, which are cryptocurrency and blockchain based.
How is Ethereum different from bitcoin:
Both ethereum and bitcoin are cryptocurrencies but there is a difference in the methods that they both work. Bitcoin is a form of payment transacted with the use of digital currencies. However, ethereum functions on token basis, where the people involved in a smart contrat run applications and use tokens for execution. Smart contract makes ethereum different from other digital currencies available in the market. Smart contracts are a set of programmable code written on top of blockchain.
Smart contracts allow the systems to be secure, transparent and free from centrally controlled mechanisms. This makes the application/ system more reliable.
of decentralized ethereum platform can be stated as:
Applications are sacred from fraud activities and hack attacks as the system is immutable.
The applications built on ethereum can be switched off or they can be said to have zero downtime.
The peers of networks running on Ethereum protocol are distributed all around the world, hence there is no fraud or corruption possible.
Immutable & Tamper Proof:
Once updated, the data cannot be changed or tampered with. Even if a particular node is hacked and the data is changed, the data on all other nodes need to be changed for further processing which is practically impossible.
Censorship is not possible as the system is totally decentralised and runs on the network built on consensus mechanism. Hence no central authority can take the charge.
Various services and industries are open to create applications on ethereum due to its advantageous features. However as it’s in its initial phase and still developing, some applications may succeed and some may not.
Some of the examples of applications built on ethereum can be:
Uport : It provides the users complete control of their identification details in the most,secure and convenient way.
Provenance traces the origins and historical details of the products. By making the project framework open source, it focuses on consumers making wise decisions regarding buying products.
Agur is the open source ethereum application that allows users access to no-limit betting exchange by predicting and forecasting the market events and getting rewarded instead.
Gitcoin is the network of developers that process on incentivized open source platforms.
Dharma is another ethereum application that is developed to earn interest in the cryptocurrency in the easiest way.
Ethereum is gaining a major lead amongst all the blockchain platforms. As it’s in its early stage yet , there shall be many challenges to face and issues to resolve around ethereum. However we can look forward to some exciting projects to be built on ethereum, in the near future.