Ethereum – what is it? Here, we would like to explain to the beginners what the motivation behind Ethereum is.
To understand Ethereum, we should take a long time to look at the internet. Our personal, as well as financial data and even our passwords, are “in the cloud”. Which is a flowery description for server farms of big companies, and social media icons, like Facebook, Google or Amazon.
The structure of the Internet is not only bad especially the centralized hosting services make it possible for a lot of people, as well as small businesses, to host websites in sound quality.
But, with all that comfort and stability, also comes vulnerability.
The head that is behind the Apache Web Server, Brian Behlendorf, has therefore found some drastic words. According to him, the centralization of the Internet on huge server farms is the origin of the Internet too. According to Behlendorf, the Internet was conceived initially as decentralized. The aim of decentralization is to be reached again, by using different tools like blockchain.
As the mention of blockchain suggests it, we can strike the bow to Ethereum here. While Bitcoin aims to shake up the financial system, Ethereum wants to use the blockchain technology to make middle – term internet unnecessary.
Ethereum – a decentralized computer, thanks to original contracts.
Above everything, Ethereum would also like to become a kind of “decentralized computer” which will help in the decentralization of the existing client-server model.
In blockchains such as Bitcoin or Ethereum, servers, as well as clouds are replaced by thousands of so-called “nodes” that are set up by volunteers. In the case of Bitcoin, they play a significant role in the maintenance of the payment network: they check, as well as store each block in the blockchain and also check the individual transactions that are processed by the own digital currency Ether of Ethereum.
And, in the case of Ethereum, there are the so-called “smart contracts” that make a decentralized computer from this network. Smart contracts, as the name itself implies, are an original contract, or small programs which run on the Ethereum network and can, for instance, regulate transaction conditions of the Ethereum itself. Therefore, the nodes are responsible for the procession of these contracts.
By using these Smart Contracts, the development of the so-called DApps is possible – decentralized applications that are not the just open source, but they can also be checked for the correct function during the runtime. Instead of a glass person, the transparent, transparent program will be created.
With such DApps, we can explain the vision behind Ethereum in the following way: since each of them can operate a node, each also has the same functionality and can this offer some services on the infrastructure.
Ethereum – the DApp-Store of the future.
Nowadays, when we look at an App Store, we can buy a plethora of apps from action games to time management systems. Such applications trust the App Store regarding payment management so that third parties hold it.
Finally, the ones that developed the apps are also dependent on the favor of the App Store, various examples, for instance, the Apple Store has shown which you can also be removed from the store here. Similar to that, the choice of the end user depends on third parties like Google or Apple. And at the end, in the case of Web apps, you can see Google Docs or Evernote, which the generated content ultimately lies in the hands of third parties.
With Ethereum, the data will again be in their own hands. The developers of DApps could also offer this independently of an App Store provider freely one will not rely on the pre-selection of the Dapp selection, as well as the control over their data will be in their own hands.
The idea is just that there is no entity which has control over your notes or some other documents. Not only merely by law, but also by code, according to the vision, just the owner of these records can control, as well as change or delete them.
This means that the control that you have of your data, which used to be normal, is compatible with the simple, as well as global manageability which we find essential nowadays: whenever you change your files, as well as add or delete them, Authorized change to each node.
So, the introduction of the Internet of Thing has been introduced. This Internet of Things will require meaningful communication which will happen between the individual devices that are usually referred to as machine – to – machine communication. This can very well be achieved by Ethereum, using the Smart Contracts.
It is still a long way of course, and whether the world of the DApps on Ethereum will ever be as far as the centralized world that is around Google, etc. is yet not to say.