Why Ethereum Has Been Used Popularly in The World after Bitcoin?.

Why Ethereum Has Been Used Popularly in The World after Bitcoin?.

If you already have known what is Ethereum and how it works. This guide assumes a basic understanding of why we should use Ethereum.

What is Ethereum Guide?

Beyond Bitcoin & first generation decentralized applications

Although commonly associated with Bitcoin, blockchain technology has many other applications that go way beyond digital currencies. In fact, Bitcoin is only one of several hundred applications that use blockchain technology today.

“[Blockchain] is to Bitcoin, what the internet is to email. A big electronic system, on top of which you can build applications. Currency is just one.” Sally Davies, FT Technology Reporter

Until relatively recently, building blockchain applications has required a complex background in coding, cryptography, mathematics as well as significant resources. But times have changed. Previously unimagined applications, from electronic voting & digitally recorded property assets to regulatory compliance & trading are now actively being developed and deployed faster than ever before. By providing developers with the tools to build decentralized applications, Ethereum is making all of this possible.

What can Ethereum be used for?

Ethereum enables developers to build and deploy decentralized applications. A decentralized application or Dapp serve some particular purpose to its users. Bitcoin, for example, is a Dapp that provides its users with a peer to peer electronic cash system that enables online Bitcoin payments. Because decentralized applications are made up of code that runs on a blockchain network, they are not controlled by any individual or central entity.

Ethereum enables developers to build and deploy decentralized applications. A decentralized application or Dapp serve some particular purpose to its users. Bitcoin, for example, is a Dapp that provides its users with a peer to peer electronic cash system that enables online Bitcoin payments. Because decentralized applications are made up of code that runs on a blockchain network, they are not controlled by any individual or central entity.

“A DAO consists of one or more contracts and could be funded by a group of like-minded individuals. A DAO operates completely transparently and completely independently of any human intervention, including its original creators. A DAO will stay on the network as long as it covers its survival costs and provides a useful service to its customer base” Stephen Tual, Slock.it Founder, former CCO Ethereum.

What are the benefits of Ethereum?

Because decentralized applications run on the blockchain, they benefit from all of its properties.

Immutability – A third party cannot make any changes to data.

Corruption & tamper proof – Apps are based on a network formed around the principle of consensus, making censorship impossible.

Secure – With no central point of failure and secured using cryptography, applications are well protected against hacking attacks and fraudulent activities.

Zero downtime – Apps never go down and can never be switched off.

What’s the downside?

Despite bringing a number of benefits, decentralized applications aren’t faultless. Because smart contract code is written by humans, smart contracts are only as good as the people who write them. Code bugs or oversights can lead to unintended adverse actions being taken. If a mistake in the code gets exploited, there is no efficient way in which an attack or exploitation can be stopped other than obtaining a network consensus and rewriting the underlying code. This goes against the essence of the blockchain which is meant to be immutable. Also, any action taken by a central party raises serious questions about the decentralized nature of an application.

I want to develop an app. How do I access Ethereum?

There are many ways you can plug into the Ethereum network, one of the easiest ways is to use its native Mist browser. Mist provides a user-friendly interface & digital wallet for users to trade & store Ether as well as write, manage, deploy and use smart contracts. Like web browsers give access and help people navigate the internet, Mist provides a portal into the world of decentralized blockchain applications.

There is also the MetaMask browser extension, which turns Google Chrome into an Ethereum browser. MetaMask allows anyone to easily run or develop decentralized applications from their browser. Although initially built as a Chrome plugin, MetaMask will eventually support Firefox and a range of other web platforms.

While it’s still early days, Mist, MetaMask and a variety of other browsers look set to make blockchain-based applications accessible to more people than ever before. Even people without a technical background can now potentially build blockchain apps. This is a revolutionary leap for blockchain technology that could bring decentralized applications into the mainstream.

We’d love to hear your views on this…