Blockchain is awesome.
Tracking transactions over blockchain (Bitcoin) are even cooler.
But what if you are equipped with the power of programming them?
That’s when you can literally hold an “S” on your chest…
…Because you’ll be able to do everything with your money- Smart Contracts.
And today we have something which will make you feel like you have some freaking financial powers:
Presenting you the brand new sensation in digital money and finance- Ethereum
What is Ethereum?
Yes, Ethereum is the separate blockchain network or protocol than that of Bitcoin to build and distribute the next generation decentralised applications. As we already know that over such a network all the works are public like Internet and therefore, you can develop and distribute your project publicly.
Who has developed it?
“One thing leads to another!”
Exactly, Vitalik Buterin, a programmer involved in Bitcoin technology first mentioned it in his white paper in late 2013. Later, in the year 2014, a formal development of Ethereum software project was set up by a Swiss Company- Ethereum Switzerland GmbH (EthSuisse).
So it’s developers and founders are not that anonymous like Satoshi Nakamoto.
How does it work?
Most people think that it’s same as the Bitcoin technology, which tracks the transaction on a public ledger and more or less is a payment technology.
But here’s the difference:
It’s not just a global payment mechanics; Ethereum facilitates the whole money functions or scripts, popularly known as Smart contracts that, literally allows you to invest, spend, and save all on its own without any- middleman.
Let’s have a more easy understanding of Smart contracts:
“It’s like your ultimate candy bar vending machine, where you can just deposit the crypto currency for the particular product, you want, and the automated mechanized transaction will happen right down to the penalty if you don’t hold up your end of the bargain!”
Going a bit more technical; these smart apps or contracts are stored over Ethereum block chain and are run on “Ethereum Virtual Machine” (EVM), an environment where the instructions embedded in smart apps are executed.
Want to know the best part?
This EVM is completely detached from the network, database, or any kind of host server making it less susceptible to central failure. As a matter of fact, each Ethereum node on the network runs EVM implementation and executes same instructions which mean every terminal is a- host in itself. (Wow!)
We must agree on the fact that most of the services which we use today are centralized, e.g. banks, any Kiosk centers, or Social Media sites like Twitter and history has proven time and time again that these models are flawed- your data/value can vanish for no reasons.
Here’s the deal:
The smart contracts developed at Ethereum platform do not require the users to trust the developers as their personal information, funds, or the content stays their own. (Cool!)
Some applications of Ethereum
#1. To make your creativity, your Business:
“Now everybody will become the entrepreneur!”
Yes, with the Ethereum, as the platform for developing decentralized applications, you can build your own token of value and lure users to invest in your creativity; making it your personal- IPO.
Now, imagine when the users will start supporting your work by buying those tokens & exchanging it over millions of other users; the currency will become the representation of your value and not just a mean of exchange.
#2. To generate the Revenue like never before:
Whenever you help identify an artist on Instagram or Twitter who subsequently become famous by clicking on like buttons; that particular value goes to the website advertiser and not you or the content producer.
It’s not in the case of Ethereum:
On this platform, both the parties i.e. content producers and early adopters will be rewarded with the token of value which can be exchanged over the decentralized network. This is a brand new revenue model that can completely revolutionize the way we think about revenue generation over-Internet.
#3. Get your reputation to finance yourself
Have you ever been banished for a loan because of your past default?
Yeah, many of us have experienced the same, when our so called “old school financial institutions” have banned us from getting credit just on the basis of past reputation; we were defaulters for some odd reasons despite having assets.
But here’s the kicker:
The above method is successful in developing the world but has never passed to the small group of individuals whereas, in Ethereum we can spread reputation to millions of people and the same is not limited to credit only; users can get their stocks, bonds, derivatives, and exchanges for them.
Fun fact: Ether is the second highest valued crypto currency among its contemporaries.
Now it’s your turn:
You have just seen the advent, working, and applications of Ethereum…
Now it’s time to change and use your creativity to build your own planet.
The first step?
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