An Overview Of The Ethereum Blockchain
Ethereum is an open sourced blockchain based computing platform. Ethereum was developed by Vitalik Buterin, a Bitcoin Magazine programmer. Buterin wanted to build some decentralized applications. Buterin also noted that Bitcoin lacked language for application development.
Ethereum is different from Bitcoin. While the Bitcoin blockchain helps track digital currency, the Ethereum blockchain primarily focuses on the programming code of decentralized applications. Instead of Bitcoin, miners earn Ether, which is a crypto token. Ether not only serves as a tradeable cryptocurrency, but as an asset to help developers pay for services and fees on the Ethereum network.
The Virtual Machine
Originally blockchain applications only handled a few operations. Ether helped expand the number of functions offered, which created a complex problem. The Ethereum Virtual Machine was created to run on any program. The goal of the Ethereum Virtual Machine is to make the creation of blockchain applications become more efficient. Ethereum opens up the potential for the development of multiple applications on a singular platform.
Ethereum Smart Contracts
Smart contract helps explain the code that oversees the exchange of content, money, shares, basically anything that is valuable. Smart contracts help stop any potential censorship issues. Ethereum allows people to store scripts in the blockchain for future use by the Ethereum Virtual Machine. Developers have full control to create anything that they want.
Developers use Ethereum to build applications. Decentralized applications that run on a blockchain network are not controlled by an individual or entity. Ethereum can make an impact on services such as voting systems and bank loans.
Many developers use Ethereum to create Decentralized Autonomous Organizations. These organizations are fully autonomous and are ran through a programming code. DAO’s run on smart contracts that are written on the Ethereum blockchain. These organizations have different rules compared to traditional organizations. DAO’s eliminate the significance of centralized control. Decentralized Autonomous Organizations are owned by the token owners. The tokens help give people voting rights.
Companies are starting to use Ethereum because of its many benefits. No one from the outside can change information. The information stored through Ethereum will never lose power. All of the applications are protected against potential hacking attacks.
It was recently announced that a number of different start ups, as well as a few large companies were collaborating to create the Enterprise Ethereum Alliance. Some of the members include; Toyota Research Institute, Microsoft, J.P. Morgan, Intel, and Banco Santander. The primary goal of the Alliance is to create a private version of the Ethereum blockchain that will potentially help many different industries.