If you think about it, Bitcoin has already got old and the newborns are ruling the battlefield. Back then, the blockchain technology was solely used for validating transactions and more of a digital cash system. Well, that’s just a single use of the technology created by Satoshi Nakamoto. Ethereum is the first blockchain network that showed the world that a blockchain can be much more than a currency maintenance system. The benefits of Ethereum decentralized platform are countless and it can re-define the very internet as we know.
What is Ethereum?
Ethereum is a blockchain based decentralized software platform where you can build and launch your applications. The core difference between Bitcoin and Ethereum is within their applications. Bitcoin used the blockchain technology to create a new transaction system that resolves the need for a third party validator like banks.
Ethereum also has a currency and transaction system of its own but actually is much more than that. It is the first system that introduced Smart Contracts for us.
The Smart Contract: Explained Simply
Smart Contract is a fancy name for a code that enables a user to transact anything having value. It could be money, property, company shares, and gold, basically anything!
But, how? Let’s assume a scenario. John wants to pay Lisa when she finishes writing a book for him. But John wants a great book! He decides he will pay only if Lisa writes up 20 chapters each containing 3,000 words and finishes it within 30 days. But John was a fraud who vanished up in the thin air although Lisa fulfilled all the conditions.
A Smart Contract can save Lisa from such scenarios. It is a contract between two individuals. There are codes inside each block of Ethereum. When two parties agree to the conditions that they decided earlier, the system validates it automatically. So, Lisa could save herself if she made a Smart Contract with John.
Both parties will remain anonymous yet the contract will be in the public ledger for validation.
The Ethereum Virtual Machine (EVM)
The EVM is a bit complex idea. So, listen very carefully! EVM is basically a suitable hardware and software co-relation system that enables the Smart Contracts. This virtual machine can execute the untrusted codes within the Smart Contract by all the machines (computers) connected to the Ethereum’s network.
A Smart Contract validates the transaction when the requirement is fulfilled. The EVM is the Turing complete software that these Smart Contracts use to dissolve issues.
DApps: The Ultimate Use and Benefits of Ethereum Decentralized Platform
Okay, so, where can you use the technology of Ethereum’s decentralized platform? The answer is DApps. DApps are decentralized apps.
Almost all the big websites have a centralized server. The number one problem with this centralized server is that if one person hacks it down, they can get all the sensitive data of all the websites on the server. The server could face crashes too. There just too much dependency on the centralized server.
Now, imagine having a decentralized server that holds only a fraction of all the data. So, if one server crashes or gets hacked, the website owners will not lose all the data.
Moreover, the government or internet regulatory organizations cannot take down any website as the data are scattered all over the network. So, no one can control the internet as it. As you know the very idea of the internet was to make information free for all. With the decentralized platform, it is possible now.
So you see, the benefits of Ethereum decentralized platform are countless.
Decentralized Autonomous Organization (DAO)
One of the brilliant benefits of Ethereum decentralized Platform is a group of like-minded people can team up to finish up a project. The best part is that there isn’t any sole-leader of the group, meaning the group is decentralized. Learn more about “DAO”, here.
This can happen if one more entity bound by a Smart Contract work to achieve one single unified goal. The system dissolves the DOA after attaining the goal. You can call it the future of jobs and offices.
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With new inventions, new possibilities come to light. Ethereum’s decentralized platform is already creating new horizons. It might just shake up the very nature of the internet. The platform would make the contracts immutable and tampering proof.
Moreover, there will be no downtime of the apps as the server would never go down. Only time can tell where would this technology take in the future.
Read more, The Ultimate List of Blockchain Protocols