Ethereum

Ethereum is a digital platform that helps people in building a range of decentralized applications. The applications may include voting systems, security programs, and payment methods. Ethereum tends to operate around the mandate of the central authorities like the banks and governments.

Vitalik Buterin is a person who created the idea behind Ethereum. The first version of the platform was launched in 2015, with the help of several co-founders. Since then, there has been quite a rapid growth in popularity and has helped prompt an increase in the new Bitcoin rivals.

What is Ethereum?

The tokens that are used for the payment on this network are known as ether. Ether, in other words, is the crypto-fuel or cryptocurrency for the Ethertuem network. When we talk about trading, the prices that we see refer to ether. Nevertheless, we usually know this cryptocurrency referred to as Ethereum.

How does Ethereum work?

Ethereum is an open software platform that functions on blockchain technology. Many computers around the world host this blockchain, and therefore, it is decentralized. Every computer contains a copy of the blockchain, and there must be a widespread agreement before any changes to the network can be implemented.

The Ethereum blockchain is quite similar to the Bitcoin blockchain because it records the transaction history. However, with the Ethereum network, the developers are allowed to deploy the decentralized applications or dapps. Along with the records of the transactions, these are also stored on the blockchain.

What are dapps?

The open-source software that uses blockchain technology is known as dapps. As compared to the traditional apps, they don’t require any middleman to function. As they are still a new concept, it might not be easy to pinpoint their exact definition. However, their main features include that they are decentralized and open source.

In order to create dapps, groups of smart contracts are used. Smart contracts are the scripts of code to facilitate the money exchange, content, shares, or anything that has value. Ethereum Virtual Machine (EVM) is used to form smart contracts. When a smart contract runs on a blockchain, it starts to act like a self-operating computer program.

Benefits of decentralized Ethereum platform

  • Immutability

The third-party can make no data changes.

  • Corruption and tamper-proof

It is impossible to make censorship because the Apps are based on the network formed around the principle of consensus.

  • Secure

All the applications are well protected against any fraudulent activities and hacking attacks because there is no central point of failure, and therefore, cryptography is secured.

  • Zero downtime

One cannot switch off the apps, and these apps never go down.

Conclusion

The Ethereum platform is beneficial to shift the way the internet is used. The decentralized applications can push a fundamental change from the internet of information where one can quickly view, exchange, and communicate any information to the internet of value, where people can exchange immediate value without any intermediaries.

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