A Review For Ethereum
Whenever we talk about crypto currencies or Ethereum, it is a bit difficult to understand the concepts for a new person because of its complex nature. For example, people have difficulty understanding block chains and peer-to-peer network systems although they have been working since the creation of Bitcoin (the very first crypto currency). Bitcoin network carry out its operations by solving complex problems and discovering blocks which eventually become block chains. An ethereum review is necessary to grasp the basic concepts concerning ethereum.
What is ethereum?
Ethereum is a block chain platform which is open for everyone on the internet. It lets anyone build and use different applications which are decentralized using the blockchain technology. The decentralized applications are the one which are not controlled by a single party of a third party i.e. Government or a regulatory authority. Bitcoin was the first one to use block chain technology and its main purpose is the make fast and cheap online payments using the block chain network but unlike Bitcoin, Ethereum is a very advanced and improved version of block chain technology. Was designed to be flexible and adaptable to the changing circumstances of the world and the internet. This is a platform which is providing the necessary tools to developers to build new and improved decentralized applications.
Facts about Ethereum
Ethereum is a block chain based platform. There are some things which you need to know about it which will enable everyday person to understand and review in the way it is:
- Not a cryptocurrency – Ethereum is not a crypto currency instead it is a platform which enable the users to develop and use decentralized applications.
- Ether – Ether is a crypto currency which is used widely in the ethereum network. It is also the fastest growing crypto currency.
- Banks like ethereum – As the demand for block chain and smar contract network increases, the value of ethereum also increases. Banks also like ethereum more than Bitcoin as 11 major banks – including HSBC, Barclays, and UBS – are having an interest to test a system which uses block chains to trade.
Is Bitcoin and Ethereum the same?
While the Bitcoin and ethereum work on the same principles and technology, there is huge difference between their purpose and usage. Bitcoin is just a currency in nature which uses the block chain technology to track the owner of the currency whereas ethereum uses the block chain technology runs the programming codes for any decentralized application. In the ethereum network, miners do not mine to earn bitcoin instead they get “ether” which is a type of crypto currency which fuels the ethereum network. Alongside being a crypto currency which can be traded, Ether is also used by developers to make transactions on the ethereum network.
Smart contract is a term used to define a computer code which is written by an individual to run on the block chain. These contracts ensure the safe exchange of money, shares or anything of value. When the contracts run on the block chain, they become independent programs which cannot be tampered with. They execute themselves automatically when certain conditions are met which are written in the code thus making them the building blocks of the ethereum network. A good understanding of smart contracts is crucial if someone is interesting in conducting a comprehensive ethereum review.
Ethereum Virtual Machine (EVM)
Bitcoin and various types of crypto currency on the market serve only very limited amount of purpose. To expand the capability of these currencies, a huge amount of capital and time was required. Network was developed in order to serve more purpose than just transactions. The main innovation of ether network is the ethereum virtual machine (EVM). It is a software which runs on the ethereum network and lets anyone to run any program on the network. The EVM has improvised the process of creating the block chains in a huge way. It is much easier to create block chain applications on the network because ethereum gives the capability of developing different applications in one place instead of creating new block chains for every application designed.
When someone hears the word decentralized application, he may not get a clear understanding of what this is. In today’s world where everyone is dependent on the internet and requires privacy of their own, it is very difficult to keep this privacy because of the centralized nature of the applications used. For example, the data of people is stored on huge servers owned by companies like Amazon and Google. Whenever the Government of an authoritative third party, they can get their hands on the data without any hassle and the owner does not even know their data has been tampered with. This is how centralized applications and servers work because the internet is watched over by many powerful entities making it a centralized place. Whereas in decentralized applications, there is no presence of any centralized authority of Government who can get access to public data easily. Instead, the decentralized applications make it very hard for anyone to access the data. Everyone respects and wants their privacy which is why they should conduct a review for ethereum to understand what it is and how their decentralized applications work. In fact, any services which are centralized can be made decentralized by the use of ethereum network which exists.
Decentralized Autonomous Organization (DAO)
ETH may also be used to create decentralized autonomous organizations (DAO). A DAO is an organizations which does not have a single leader to control the organization rather it is run by programming code using smart contracts which is written on the block chain of ethereum network. A DAO eliminates the rules and structure of a traditional organization and is owned and run by everyone who purchases the tokens. These tokens give their holders the right to vote in the decentralized autonomous organization. A DAO operates completely independent of any human intervention and it is an organization which is transparent.
Advantages of Ethereum network
The advantages of decentralized applications running on block chain are:
- Security – Without the presence of central point which can fail, the applications are secure and not vulnerable to any hacking attacks.
- No tampering – The applications are developed around the principle of consensus, which takes corruption and any tampering of data out of the equation.
- No downtime – The applications can never be switched off by one and they never go down.
- Protection – Any third party cannot make changes to the data due to their decentralized nature.
Drawback of Ethereum network
Like everything else, ethereum network and applications aren’t perfect. There is always a risk of downturn. Because of the fact that the ethereum network runs on smart contracts which are written by human beings, any error or bugs related to code can lead to negative circumstances. If there is any mistake in the code and it gets exploited by a potential threat, there is no simple way in which the exploitation can be stopped. It can only be stopped by rewriting the code without the consensus. This is against the basic concepts of block chain where no one tamper with the data once uploaded. Regular ethereum reviews are needed by experts in order to avoid such circumstances and proper training and development of code programmers is needed so that there is no exploitation of this flaw in the ethereum network.
Proof of work vs. Proof of stake system
There are two systems working in the ethereum network to give rewards to individuals working within the network.
|Proof of work||Proof of stake|
|Proof of work is to define an expensive computer calculation called mining.||In proof of stake system, the creator of new block is chosen depending on its wealth, also called stake.|
|A reward is given to the individuals who solves the problem first.||There is no reward in this system, so the miners take transaction fees.|
|Miners compete to be the first to solve the problem.||Proof of stake currencies may be several thousand times more cost efficient.|
How to access Ethereum
There are several different ways in which someone can access the ethereum. Either you want to buy or sell Ether or have an application developed on the ethereum, first you have to join to access the facilities it has to offer.
One of the easiest way to join the ethereum is use the Mist browser which is native to it. The mist browser provides the user an access to digital wallets and offers a user friendly interface to use it. It can be used to buy, sell, and store ether and also write or use smart contacts. Just like a browser allows an individual to surf the internet, Mist facilitates its user to dive into the world of decentralized block chain applications.
Another way to access it is the MetaMask browser extension developed to turn Google Chrome into an ethereum browser. It will let you perform tasks related to ethereum and also let you develop and run decentralized ethereum applications. The extension will also work with Firefox and a bunch of other web browsers.
These browsers in conjunction with a variety of other browsers to access ethereum, will let individuals with even minimalist knowledge to use and build decentralized applications. It will help decentralized applications to have their impact on everyday life and will hugely help to conduct an ethereum review for understanding and using the ethereum.
Apps being developed on Ethereum
As the main purpose of Ethereum is to develop and use decentralized applications, there has been a lot development of decentralized applications. As the developers are just starting to use ethereum and develop apps, it is very hard to guess which apps will perform better and which will fail in the future. Anyhow, some of the apps being developed on ethereum network are discussed below.
Uport is an app which gives an easy and convenient way to its users so that they can control their identity and database. Instead of relying on centralized authorities, it gives its users a control over who can access their information and identity.
Provenance is working on ethereum which helps in making supply chains more transparent. By looking at the origins and production of different products, it has enabled consumers to make different informed decisions regarding the products they buy and use.
Augur is a platform working on ether which allows people to make predictions and forecasts about future and then rewarding the individuals who have predicted them correctly. Predictions on the future world events are made on the platform e.g. who will win the next election. They are carried out by trading virtual shares. Also, if someone buys shares in winning predictions, they also get monetary rewards.
BlockApps provides the enterprises and individuals an easy and convenient way to build and deploy block chain applications. BlockApps provides the necessary tools and techniques needed to create different block chain applications.
The future for Ethereum
If you think that internet has affected your lives in any way, the same is going to happen in the future to everyone. It will have a great impact on everyone in the future. Keeping in view its block chains and the decentralized nature of the applications, it sounds quite futuristic. Not to mention the Ether which is going to be a great competition for Bitcoin. Although the value of Bitcoin has appreciated a lot, the demand for ethereum in the world is going to affect ether also.
By providing user friendly platforms to individuals, it has allowed them to get benefit from the block chain technology and indeed, it is going to affect and transform even more people worldwide. Decentralized applications have the potential to turn industries upside down such as finance, insurance, real state and many more. The only question is how to review ethereum and use it in the beneficial way to help people and not create chaos.
Where to buy Ethereum:
Binance – Read Binance Review HERE
Coinbase – Read Coinbase Review HERE
BitPanda – Read BitPanda Review HERE
HitBTC – Read HitBTC Review HERE
Gate.io – Read Gate.io Review HERE
Exmo – Read Exmo Review HERE