Ethereum is an open-source blockchain platform to build Decentralized applications using Smart Contracts and was founded in July 2015 by Vitalik Buterin, Joseph Lubin and Gavin Woods. It’s native coin Ether (ETH) is the second largest cryptocurrency behind only Bitcoin with a market cap of $41,482,365,668 at the time of writing.
It allows smart contracts and Dapps(Decentralized Applications) to be built and run on Ethereum blockchain without any risk of fraud, control or third party interference. Ethereum is open to everyone, you don’t need to take approval from any bank or any central organisation to trade and hold ETH. All you need is Ether wallet and Internet and you are good to go.
Now, you must be thinking hang on a minute Ankit, what do you mean by smart contracts and Dapps?
So, let’s know something about the Smart contracts and Dapps (Decentralized Applications).
What are Smart Contracts?
As you must have guessed by the name itself, it’s an agreement between two or more parties but the difference here is you need to write code for all the required data in the form of a computer program which then goes on blockchain. Once it’s published, you cannot change or modify it. Let me give you an example of somewhat technology equivalent vending machines. I hope you all have used them, just select the product and pay the required amount and the machine will verify whether the amount paid for the product is valid or not without any human interference.
What do you mean by Dapps(Decentralized Applications)?
I know you must have guessed this one also, applications that are decentralized. Correct, these are applications whose data is stored on a public blockchain or network of computers and no single person has complete authority over it. The most common example of a Dapp is BitTorrent, everybody has used it at some point in their life to download a movie or a Tv show.
However, it runs on the P2P network of computers and not on a blockchain. In the Crypto world, Dapp runs on a public blockchain which is open-source and completely decentralized in nature. If YouTube, Facebook, Twitter and Instagram were Dapps then they wouldn’t have been able to remove or delete any content citing the most comical reason “Content removed due to our TOS violation”. Let me give you another example it’s importance, Tiktok and PUBG are two applications recently targeted by Governments around the world to take some sort of revenge from China. If they were built on Ethereum blockchain, no one would have been able to ban them.
Ethereum may have been built on Bitcoins innovation but it is so much more than a payments transfer network. Please look out for my next post on Eth2.0 to learn how it is gonna solve the few problems it has got and scale to even greater heights.
Blockchain is making the world decentralized again, the way it was always meant to be.
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