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Thursday, October 5, 2017

Definition and Complete Explanations About Ethereum

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What is Ethereum?

Ethereum is a platform for decentralized application development running on blockchain, through the use of smart contracts.

Since its launch on June 30, 2015, it has steadily gained popularity. Starting from the end of January 2016, has experienced a surge.

In March 2016, in less than a year of its existence, the peaked growth in Ethereum reached a record market capitalization of more than $ 1B.

Since then, lust has subsided and Ethereum has declined slightly. However, the coins are now second only to Bitcoin on the list of market capitalization

Ethereum is actually like a Bitcoin blockchain system. The difference is in Ethereum there is no 3rd party involved in it. It is purely an autonomous company that runs because of the internet network. Almost no human or human employees behind the scenes. It is a pure internet machine that is scattered all over the world.

So it is impossible to set by any country and bank in the world.

Ethereum will establish itself as a clear leader in this regard.
Bitcoin may have sidechains and Lightning Networks, but both require deep protocol changes that can take a very long time to work.
Other systems, such as Digital Asset's Hyperledger, will be more scalable, but lack the general ability of decentralized smart contracts.

Ethereum has government channels and solutions similar to Raiden's network and is more flexible than Lightning Networks for off-blockchain transactions such as micropayments. The only blockchain-based tool needed to make this solution work is a smart contract, so this mechanism will soon be available in Ethereum.
Once that is realized, we can expect technology giants like IBM to use Ethereum as their backbone on the Internet on platform issues.

On its official website, Ethereum's Speaker says, Ethereum will not exsis without its Bitcoin, Ethereum does not see its business competitor Bitcoin but the other way around, they think of something the digital ecosystem is compensating for.

Why is Ethereum so hot?

Here's a brief explanation: Ethereum is decentralized, like Bitcoin, but it is capable of many, many more.

This Bitcoin peer-to-peer network is decentralized and distributed, where each participant is a client and server at the same time, allowing for unprecedented improvements in network security and resilience.

In legacy systems, where the entire network is handled by a single server body, it becomes a weak point, which can be exploited by potential attackers.

On the other hand, decentralized networks are:

Very resistant to hacker attacks;
Have zero downtime, even if some of their parts are down;
Not run by certain, a number of people (having those responsible can cause additional problems, both intentionally and unintentionally, due to the famous human factor).

In addition to all these characteristics, one of the most important features of blockchain and, by extension, Bitcoin is data integrity.

Note that any transactions ever made on the Bitcoin network are accessible to anyone, which can easily be tracked under the pseudonyms of the sender and the recipient (but not with their real-life identity), and can hardly be altered.

Thus, no one can cheat one another, by, for example, spending money that they do not actually have.

This advantage is very important for a payment protocol, but some developers have quickly realized that utilities do not end with one simple use case.


So far, developers are trying to generate new applications based on blockchain in two different ways, both of which are ultimately ineffective.

The first option is to build an application on top of Bitcoin. However, the Bitcoin script is not Turing complete, ie it can not solve problems that are easily solved by some known programming languages, such as C ++, for example.

That is associated with technical complications and requires developers to introduce all sorts of "crutches" to make it work.

Another option is to develop, launch and promote you have an alternative blockchain, thus depriving yourself of the opportunity to use the immense power of this Bitcoin network as a whole.

Instead, you must run your own blockchain, which is associated with high cost, which can not be justified for each application.

The solution

Ethereum has solved this distinction for the first time, by integrating, programming languages ​​of all the right goals with its own blockchain.

With that, anyone can think of possible applications, easily code it and offer ETH network to implement it.

Quite simply put, Ethereum is a decentralized computer distributed worldwide with unlimited theoretical powers.

A developer code solution and deploy within the network. Then the network executes by itself, verifies the output by itself and distributes the value between the participants by itself.

The application runs completely transparently, without input from the central government, accomplished with the help of smart contracts.

The future of Ethereum

Given all the things mentioned so far, the reason Ethereum is in the spotlight is now quite clear.

And although at this point it is highly unlikely for a coin to ever fade into obscurity, the speed and scope of future growth will depend on many factors.

Ethereum gives the promise of limited opportunities. But whether the promise will be met, and how far, depends on how strongly the network will make it, and how talented and creative will the developers find the solution.

Expert opinion '

To help you better understand what is Ethereum, we have decided to ask some experts in the field of the following questions: "ELI5 :? What is Ethereum"

Ethereum is the second Blockchain to pass billions of dollars of market capitalization and spreading a number of security mining powers, as Bitcoin is decentralized, but unlike Bitcoin it is not used as a currency, but as a supply of digital tokens (Ether) is not fixed. Ether is used to make smart contracts not as currency.

In a world where corporations are all interested in Blockchains, Ethereum has become a decentralized Blockchain that they are more comfortable to use, although Bitcoin is much safer and has a much longer history now. When companies realize that private Blockchains do not have much value they will be able to choose between Ethereum and Bitcoin (whose economy works very differently) to secure smart contracts.
- Simon Dixon, CEO of and Investment Manager Bitcoin Capital

Ethereum deals with blockchains like java related to relational databases.You store your data in a database and build apps in java One major difference is that Blockchains and ethereum platforms are not running on one but some servers are distributed. They offer some unique features like eg the fact that transactions in blockchain can not be restored, while all databases offer handling transactions and rollback mechanisms.

- Benedict
 If you have any other extras about Ethereum, please comment below, Thanks.

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