Ethereum: The idea of Smart Money and Smart Wallet
- 6 May 2017 | 2258 Views | By Mint2Save
Ethereum, a brain child of Russian Canadian citizen Vitalik Buterin, was initially released as the Ethereum whitepaper in later 2013. He is a cryptocurrency programmer and was just 19 years old when he ideated this Blockchain. Ethereum is slightly similar, but complicated and statistically better when compared to Bitcoin.
Ethereum is a decentralised application that allows you to write, organize and use smart contract functionality. Ethereum block chain allows you to hold and secure ether and other crypto assets based on Ethereum where you can pay for things online, easily trade money, and purchase and sell anywhere that accepts it. It also offer a value token known as ether. Ether is the incentive which makes sure that developers write eminence applications and that the network remains healthy. Less than one year after launching in market it now exceeds $1 billion.
Similarly like any other block chain, Ethereum also consist a peer-to-peer network protocol. The Ethereum blockchain folder is kept updated by several nodes connected to the network. Every node of the network runs the Ethereum Virtual Machine (EVM) and implements the same instructions.
Ethereum is doing lot of new things though leads to increasing efficiency, but the core difference is that every operation in scripting language is having a specific cost that notify the fee required for each transaction. As a result you can now you can write much more powerful contracts than you could have ever written with Bit coin. As well, when the contracts are deployed you can interact with them and make each smart contract similar to a web service. While in Bit coin smart contracts cannot be further interacted when once deployed.
How does Ethereum work?
Ethereum offers many similar features and technologies of bit coin that users are familiar with. While Ethereum carry its own modifications and innovations.
Ethereum’s key unit is the account. The Ethereum blockchain tracks the position of every account. There are two types of accounts:
- Externally Owned Accounts i.e. EOAs
- Contract Accounts
EOAs can control the private keys and on other side Contract accounts are governed by their internal/contract code. The well known term smart contracts refer to code in a Contract Account, programs that execute when a transaction is sent to that account.
Ethereum is a blockchain that let the users to make their own operations of any difficulty they wish instead of giving users a set of pre-defined operations as bitcoin transactions does. In such as manner, it provides a platform for a lot of dissimilar types of decentralized blockchain applications.
Benefits of Ethereum decentralized platform:
Unchangeable: A third party cannot do any changes to data.
Internal crypto currency: People can use it for transferring several information such as domain names, agreements, contracts, election results,etc.
Convenient: Ethereum is a convenient device for individuals who create exchange deals and allow them to be at the top of the new crypto currency system. Thus, ethereum is still young, it is continually developing. Ethereum helps to avoid legal formalities and allows to register any deals on the basis of block chain.
Tamper proof: Apps depend on a network formed by the principle of consent, making censorship not possible.
Safe & Secure: An application is well protected from the attacks of hacking and false activities. It is secured using cryptography with no central point failure.
Zero downtime: Apps can never be switched off and can never go down..
There are many others benefits of ethereum such as:
- Regular Updating
- Provides opportunity for mono mining.
- Easier to purchase this crypto currency at any open crypto currency platform.
Applications of the Ethereum Platform
Ethereum has certainly triggered a new dimension in the field of financial and service based transactions. The above image shows various platforms that have emerged on the basis of Ether and Ethereum.
With Chrome Extensions such as that of Metamask, storing and transaction of Ether is not only become secure, but also portable.
Ethereum and Bitcoin
One of the main reasons of release of Ethereum Blockchain is the flaws that Vitalik had pointed out in Bitcoin. He realised the need for a more robust platform and with the help of Consensys, was able to derive a new cryptocurrency network. His vision is to make Blockchains reach out more than just cryptocurrency.
Cut short to the present and now we are witnessing the era of Distributed Applications, known as DApps. Moreover, all the computers in the world can now come together to make a single Computer based on the distributed technology. There can be multiple users on this computer who can choose to share resources accordingly. As told before, Ethereum is not just distributed, but also carried one of the highest levels of cryptosecurity. Thus, the idea of Proof of Work remains intact and untampered. Anyone with a vision and idea can realize Ethereum’s potential for future leadership and entrepreneurship.
Let’s be truthful, Ethereum cannot fight with Bitcoin easily, though it will have to do it in a few ways. Ethereum is something much larger whilst Bitcoin is generally a cryptocurrency. Quite a bit experts think that Ethereum guys are planning to change the entire world of cryptocurrencies.
On other side, the guys of bitcoin are quite positive and even have right minded to Ethereum. So until Ethereum gets global Bitcoin don’t believe in serious competition as there are lots of altcoins today which come and go.
No doubt Ether is quite attractive crypto currency for investing and at present more and more users do it. Anyhow, Ethereum still remains a risky asset. We will observe that if this new crypto platform has a capability of making new uprising within the next years for Ethereum developers. But I believe Ethereum has many chances to grow in upcoming years.