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What_is_Ethereum?
What_is_Ethereum?

What is Ethereum? (History & Current Trends 2018)

Ethereum – Introduction

Ethereum is a blockchain based distribution platform which also features smart contracts. It not only offers a cryptocurrency token, which is Ether, but it also presents a means of distributing services in a transparent way. It is an open source platform, meaning it is void of malware and other harmful files, being open to programmers for writing. Ethereum has undergone several upgrading processes, and itself is a form of improvement on the Bitcoin blockchain technology.

Because this platform was birthed from the same principles underlying the functioning of the Bitcoin, it is also decentralized and is maintained with the help of a reward system. Basically, it is not a digital currency but the digital currency, Ether, is used on it.

It has additional features to Bitcoin, because while the Bitcoin blockchain, carries out one specific function or application, which is to carry out the transfer of a peer-to-peer digital currency, Bitcoin, Ethereum blockchain allows many applications to be created and deployed, using Ether, as its fuel.

This platform became a model of how the blockchain technology created by the group of programmers under the alias of Satoshi Nakamoto, should be used. Just like the internet can be used for sending emails but isn’t limited to that, so can the blockchain technology be used for peer to peer financial transactions, but not limited to that. It was Bitcoin which first explored the blockchain technology, but Ethereum carried out what may be referred to as a more extensive expedition of this technology.

Can Ethereum be the next Bitcoin?

One question which has filled the minds of the members of the cryptocurrency world is if or when this currency will be the next Bitcoin. This is especially important for investors. It actually offers what Bitcoin cannot as a digital currency, namely a world of the extremely transparent rendering of services apart from financial transactions. Only Ethereum among all the altcoins offers this. Ripple (XRP) is another cryptocurrency which is quite similar to it but is specialized for only transactions.

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Ethereum Smart Contract

This open- source distributed computing platform, allows you to carry out a contract which is almost perfectly transparent and free from fraud, through what is known as a smart contract. A smart contract is a computer code which regulates the exchange of money, services, commodity, shares or other valuables. To use the smart contract is to be guaranteed because this service runs like a self-operating computer instruction, which executes a command once the pre-set conditions are met.  For instance one can raise funds, say for a charity program, through the smart contract, by setting the condition that if the target amount of funds is not met in the specified time, or if there is an attempt to spend the contribution on any other agenda except the charity, the exact amount of funds contributed by each person to the charity is returned. Hence there is no aperture for foul play, when smart contracts are involved, and in a way, it fulfills the aim of multi signatory accounts.

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What is the future of Ethereum?

Well, let’s begin here, the future of Ethereum is the future of cryptocurrency and the future of the financial world. Balaji Srinivasan, CEO, and co-founder of 21.co, bets that this digital currency will remain for the next ten years. It is well known that the Bitcoin blockchain technology has created a large number of possible applications to almost every sector, but the truth is that the Ethereum blockchain allows better and more direct applications than that of the Bitcoin.

Last year’s meeting of the Russian president, Vladimir Putin and the founder of Ethereum, Vitalik Buterin, yielded a lot of fruit. In fact, Vladimir believes this digital currency will help Russia diversify their economy beyond oil and gas. The Russian central bank has also set forth an Ethereum-based blockchain pilot project, which will help them process transactions faster and verify customer details. It has also aided Russia to develop their own cryptocurrency called Cryptorubble, which is aimed at improving the Russian payment system, and also offer deeply significant changes generally.

Decentralized Applications and Ethereum

Decentralized applications are run on the Ethereum platform, as this is the major purpose of this digital system. They are applications which have self-executing smart contracts, meaning they cancel out the need for a central control over them. One such decentralized application, known as a Vevue project, allows one to take 30-second videos of places around the world, including streets, restaurants, hotels, events and other exciting places, which anyone around the world can view. Using a smartphone, one can create such videos, based on the request and earn tokens for it.

KYC-Chain is another such application which uses Ethereum, to manage the identity of its users. It applies the ‘know your customer’ (KYC) principles, to help businesses to identify their employees or this about to be employed. It does this with the help of trusted “gatekeepers” which are people permitted by law to check the user’s ID and verify them on the KYC-Chain platform and authenticate them. It helps cancel out ghost workers.

Others include 4G Capital, which will aid the access of loans by small-scale businesses in Africa, Eth-Tweet, which gives improved blogging services, and Ampliative Arts, which will improve conditions for artists among others.

Let’s talk value of Ethereum Investment

Ethereum has a market capitalization of almost $50 billion, with over 96 million coins currently being circulated. Yet this digital platform, remains in a strongly opposed position, being briefly surpassed in November 2017 by the Bitcoin hard fork Bitcoin Cash, as the second largest cryptocurrency. However, it currently retains its number 2 position and does not look like it will drop anytime soon. Looking at the Bitcoin trend, Ethereum is likely to double in value in the next 12 months.

The birth of this distribution platform, by Vitalik Buterin, has shone a light about just what the blockchain technology can be used for.  There is more to the use of this technology and for this reason, Ethereum undergoes improvements. If at all any service rendering cryptocurrency platform is to surpass or replace the Bitcoin in versatility, it is Ethereum.

What_is_Ethereum?
What_is_Ethereum?

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About Tayyab M

I love to talk about global tech-happenings, startups, industry, education and economy.

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