Ethereum, A name kept hearing often in the crypto market. One such a loud horn. It all takes back to some programmers in Canada, who started thinking about writing code in a language that creates smart contracts. Ethereum is one such type of block chain technologies which decentralizes money and internet in a network of computing systems together to work as a supercomputer.
What is Ethereum ?
Ethereum is a decentralized, open source block chain technology with smart functionality. Ether is the native Crypto currency of the platform. Among all the crypto currencies currently in the market, Ether is second only to Bitcoin (the emperor) in market capitalization.
It is the work of a team who are deeply into crypto things. Takes the story as long as 2013, when a computer programmer from Canada, Vitalik Buterin started working on block chain technology, One of the co-founders of Ethereum. It is well known as the Alt coin.
Ethereum is mostly a crypto for everyone. But Ethereum has got more than a crypto presence in the hearts of enthusiasts and investors looking for more opportunities.
About the man behind the game
Vitalik Buterin was a Canadian programmer, who was totally involved and best known as co -founder of Ether. In a seminar, He said ‘ Ethereum is an open source which removes middle men and with the help of block chain technology it removes points of failure, prevents censorship by providing transparency with trust’.Thus by meaning Ethereum makes for a security for the ether browser that cannot be said untrustworthy.
How Internet started to decentralize
It all started in the early 2000’s when Bit Torrent entered into the internet, creating a revolution in file transfers. With Bit Torrent, you can share a file to anyone in the world of internet irrespective of the source that the file came from or downloaded from any website. Then entered Bitcoin, the Founder satoshi Nakamoto came with an idea that changed the views on block chain technology. This Bitcoin has provided a network chain to exchange money, make transactions that cannot be charged by any borderlines and information that cannot be disclosed. Thus providing a safe and secured network for payments and information across the world.
Why do we need Decentralization of money ?
Money can be in notes, coins, or in the form of digital balances. But the currencies that we generally have in hand were handled by middlemen. We do need that middlemen to handle our financial affairs, which ultimately charges us some money for our own transactions. We are actually talking about banks in this situation. Ultimately what ends up happening is money gets accumulated and handled by one single authority, the Finance Department by the government of that particular country. But, Money can be decentralized. That is the key to Block chain technology. Bitcoin is the first bird in this nest. Ethereum is one of the decentralized currencies, that is a decentralized application in other words, Its DIY ( Do it yourself) platform of DAPP.
A block chain is a “cryptographically secure transactional singleton machine with shared-state.” It means the creation of the digital currency in the network is protected by a secure and complex mathematical algorithm which is hard to break. This programme will be running in thousand computers as a network together it forms a supercomputing system which is referred as singleton machine. It will be shared and open to every Ether browser.
From the words of Vitalik Buterin, Ethereum is a network / platform that is used for universal programmable block chain open client. By that, It meant to be an open source platform where an ether browser can create what he wants in the form of ether.
How? and Why ether?
Ethereum is a block chain technology that’s not centralized. It is a decentralized network of thousands of computers that are running across the world and work as a single unit of a supercomputing system. Also known as Nodes.
Ether runs on a distinctive programming language called Solidity which can help you build Decentralized applications. In short, DAPPS. With the help of DAPPS, one can use it to create any decentralized application to work up on, build any application that runs through the internet with the logic of block chain technology.
Speaking of Solidity, It is used to write Smart contracts, that is the logic that runs DAPPS. These Smart Contracts provide a way to transactions with individual AI technology which ultimately results in faster, more cleaner and no middlemen transactions.
Uses of Ethereum
A more private place in Internet
In a world growing with privacy issues, and new policies for privacy of customers, Which are ultimately turning into a never true dream, Ethereum promises privacy with its block chain technology.
As the technology started growing from the early 20th century, we witnessed some search engines growing sky high even today, we see social media grow a lot but ultimately they were all centralized and they all dump their information at the same place, the World Wide Web. Ethereum, with its nodes and ether browsers, uses solidity and does exactly what it was written which results in smart contracting between person to person, person to organization and organization to organization in unique code and access only to that certain chain of communications to those customers.
A market without middlemen
As we discussed above, our regular transactions with printed notes, and government owned currency is the real money that will be moving in our hands on a daily basis, Which is itself a centralized system that restricts upto certain limits and some negligible taxes which we need to pay for it as maintenance, and extra charges if payments cross country lines. At Ethereum there are no middle men to centralize and no borders. It’s only the ether browser and nodes that will be in work.
Drawbacks of Ethereum
There is a lot of stuff going around Ethereum positives, let’s talk about the other side of the coin. Ethereum is also a programming language that helps developers to create distributed applications . One of the major projects with Ethereum is Microsoft’s partnership with consensys offering Ethereum Blockchain as a Service on Microsoft Azure to enable developers and enterprise clients to have a single click blockchain developer environment that is cloud-based.
Ethereum was already the world’s second largest platform of digital currency in terms of market capitalization and also users. But in 2016, A hack took place which resulted in the split of Ethereum which gave Ethereum and Ethereum classic as bi-products.
Wallets / Mode of Storing Ether
Hardware Wallets :-
Electronic devices such as USB sticks that are supposed to do the sign in and sign off work, of course these are almost easy to hack.
Desktop or mobile Wallets:
Typically they run on a desktop pc or a mobile phone just like any other digital payment wallet.
This is the most unsafe method of storing your private keys online.
Overall to conclude I would say, Ethereum is a really good technology gift of block chain technology. This can help the world to have a new way of private transactions, But as it says, We need to be aware that there will be a lot Network things involved in it. There are drawbacks like hackers will involve, there are no strict miners to mine Ethereum But despite all the odds Ethereum is a successful crypto currency.