What is Ethereum?
Everybody has been aware of the term “bitcoin”, but there is one more term that has been doing the rounds which is the altcoin, Ethereum.
The sudden spike in popularity is because Ethereum saw a growth of 9000% in 2017. Which means that if you would have invested $100, it would be worth around $7000 now. This dream run has made more people curious about Ethreum which is also called as ‘Ether’ and abbreviated as ‘ETH’. Ethereum was founded by Vitalik Buterin, unlike bitcoin for which Satoshi Nakamoto is speculated to be the founder.
Today, as the majority of our time is spent on the internet, all the data is with a few companies like Google, Amazon, and Facebook etc.
They facilitate most of the services related to the internet. So this defines a centralized system wherein, there is some control taken by such companies in exchange for keeping and maintaining our Data.
However, with blockchain technologies like Ethereum, it is aimed to make Internet how it was supposed to be i.e. democratize the Internet.
What is Ethereum blockchain?
If you are wondering about blockchain technologies, let me give an insight into them. It is based on the same concept of servers and clouds but here they are replaced by “nodes” and those are operated by people in charge of them, making it a “World Computer”.
So, you no longer come under the authority of any other third party to access your data. The data is less vulnerable to cyber threats and the critical information is stored securely. It could be a much safer platform if implemented properly.
How does Ethereum operate?
Let’s get it working in simple words, this technology features “Smart Contracts” which are Scripts/computer program created by Ethereum platform. Here, inefficiency, corruption or vulnerability of data or currency is reduced by around 80 percent as it works on the process of what we give as input and the desired command is executed with no malfunction in between.
The user creates a contract, and then pushes the data into the contract and gets its desired output. So, it works on the concept of scripting or programming autonomous usage. You can program your own currencies and use them, program your own utilities. This defines an autonomous and democratic internet.
However, this Contract requires Ether currencies to work depending on the amount of computing power required. Ethereum doesn’t have a value of its own and changes its value according to other currencies. Just like a stock value, its value is fluctuating day by day. It has already started the year 2018 with its highest price of $1000.
Applications of such technology include secure payments using their currency Ether, sharing of assets like insurance and their management, storing and accessing our data like domain information of websites, or to make decentralized Apps (Dapp).