Mention cryptocurrency and many people outside the space think of Bitcoin. However, cryptocurrencies and blockchain have many more applications that go way beyond digital currencies.
Until recently, building blockchains and decentralized applications (dApps) required a background in coding, cryptography, and maths, which also took up a lot of one’s time.
But now, with Ethereum, we have a decentralized infrastructure that facilitates the development of unimagined applications. With most of the difficulty of building a blockchain application expunged.
What is Ethereum? In short, Ethereum is an open-source blockchain platform that makes it easy for developers to build and deploy dApps.
Ethereum is similar to Bitcoin are decentralized blockchains with currency, but the similarities pretty much end there.
Bitcoin is a store of value and a peer-to-peer payments network, and that’s such a valuable application.
But Ethereum does much more than Bitcoin. If Bitcoin is a payments network Ethereum is akin to the app store.
The main difference is the Ethereum Virtual Machine (EVM), which is Turing’s complete software architecture. This generates the Ethereum network. Furthermore, it allows anyone to code in any language and the Ethereum protocol will be able to process it.
This enables Ethereum to carry out much more complex functions. Therefore capable of hosting more complex smart contracts than Bitcoin.
Each contract possesses its own unique code, but in essence, they’re a self-executing contract. Smart contracts can exchange anything of value, such as money, property, and stocks and bonds.
The smart contracts will run exactly as coded without the possibility of censorship, downtime, fraud, or interference from any external entity.
Ethereum’s infrastructure allows developers to create pretty much anything inside a smart contract. And it goes way beyond anything that can be built-in Internet applications that we have today.
For example, users can buy and sell land inside Decentraland’s virtual world in which prime land sells for more, of course.
Even Brave Browser’s BAT token exists on smart contracts. The smart contracts power the currency that is paid out to users of the browser. Check here to read on…
Ethereum is the app store of the blockchain ecosystem. It’s an open-source, decentralized protocol that facilitates the construction of decentralized applications at scale.
The EVM removes much of the barrier to entry that would have put off many developers before. But with thousands of dApps being rolled out, it’s hard to see anything but success for Ethereum.
While it’s still in its early days, Ethereum looks to be a truly transformational platform and with unimaginable applications on the way. The future of the Internet will look completely different from what it is today.
Author: Tommy Limpitlaw