Ethereum is a decentralized open-source platform, which sets it apart from other blockchains since Ethereum is programmable, this means that developers can make use of its source code to create new applications. This type of decentralized applications, called dapps, obtain the benefits of cryptocurrency and Blockchain technology.
These decentralized applications are considered reliable and predictable, this means that once they are loaded into Ethereum, they will always run as scheduled. Likewise, they can control digital assets in order to create new financial-type applications, being able to decentralize, which also means that no financial entity or authority exercises control over them.
About the future of Ethereum
Today, many developers worldwide are dedicated to creating various Ethereum applications, which can be used today, let’s see:
- Financial applications: That allow you to request or make loans.
- Cryptocurrency wallets: They allow you to make low-cost payments instantly with ETH or another asset.
- Games: In which you have assets in the game as such.
- Decentralized markets: In which you can exchange digital assets, or also exchange predictions about some events in the real world.
What is Ethereum?
Explained in a simple way, as stated above, it is an open software platform, which bases its blockchain technology that allows developers to create and implement decentralized applications.
Similarity to Bitcoin
Like Bitcoin, Ethereum is a public blockchain distributed network. Although there are some technical differences between the two, the most important difference is to note that Bitcoin and Ethereum differ substantially, in terms of purpose and capacity.
We see that Bitcoin offers a particular application of block technology, in addition, a peer-to-peer electronic cash system that supports making Bitcoin payments online. The Bitcoin blockchain is used to keep track of the digital currency, instead, the Ethereum blockchain is profiled in running the programming code of any decentralized application.
On the Ethereum blockchain, instead of mining Bitcoins, miners earn “Ethers” which is a type of cryptocurrency that powers the network. In such a way, that beyond being a tradable cryptocurrency, Ether is also used by its developers, to make payments of transaction fees and services on the Ethereum network.
A Blockchain beyond money: Ethereum
Ethereum is also a Blockchain or distributed accounting technology, in addition to that, it has a Turing programming language, which allows anyone to create smart contracts or so-called decentralized applications just by writing the logic in a few lines of code. The idea of Ethereum creator Vitalik Buterin was to improve the Bitcoin version, in terms of blockchain custody, financial contracts, withdrawal limits and the gambling market, and all this to through a well-generalized programming language.
At its core, Ethereum’s protocol moves beyond the same currency, as its platform offers storage for decentralized assets, decentralized forecast markets, decentralized computing and applications that are unrelated to money.
What do you think about this topic? Did you know the scope of the Ethereum blockchain?
If you want more information about buying and selling cryptocurrencies, you can contact us or write your query at the bottom (comments section).
Image from Cliphord Photography via unsplash.com under Creative Commons license.