What is Ethereum Blockchain?
In today’s world of information and technology, it’s almost impossible to resist the use of internet for various purposes. We use internet for information, for communication, for entertainment and most importantly for financial transactions. For this purpose we create different online social and financial accounts. The information about these accounts such as passwords, personal data and financial information, is placed on servers of different companies like Google, yahoo, facebook, twitter and many other companies. Though these companies assure the privacy of our data as these companies deploy teams of specialist to store and secure this data but our data may be accessed, hacked or stolen by any unwanted person or government. To avoid this unwelcome access and to remove middle men/companies, internet experts are now technically busy in the decentralization of data using different techniques and technologies and Ethereum is one of them.
Ethereum: A little introduction and history
Ethereum is an open source platform to build and distribute decentralized applications. Blockchain technology and decentralized applications are becoming more and more important for the last ten years. These technologies allow people to interact with other people directly through global network. They also help to reduce costs removing single point’s failures and ensure transparency and trust. Ethereum is aimed to open up flood gates of such decentralized applications.
Ethereum was proposed by Vitalik Buterin, a researcher and programmer in late 2013. The idea was initially described in a white paper by Buterin which was later explained by Dr Gavin Wood in a yellow paper called “technical bible”. Ethereum got public announcement in January 2014. In early 2014,it started its formal development through a company named Ethereum Switzerland GmbH.
Why Ethereum is becoming popular?
Recently Ethereum has attracted attention of large sections of internet community because of some interesting facts. The most noticeable feature of Ethereum is its reliability and immutability which means no third party or agent can make any changes to your personal or financial data. With security as their fundamental attribute, Ethereum decentralized applications are well protected against hackers and other fraudulent activities, thus making them more reliable and secure.
How Ethereum works?
The structure of Ethereum is very much like Bitcoin. Unlike Bitcoin, Ethereum system uses ethers as fuel to the online transactions. Ether is a form of payment, made by the users of the Ethereum platform to the machines executing the requested operations. To get anything done on Ethereum you need to pay a price in terms of ethers. A human being and smart contract both can use Ethereum system as legitimate users.
Before getting or acquiring ether we need to establish a place to store it. Such virtual places are commonly known as electronic wallets. Though these electronic wallets are also vulnerable to hacker’s attack yet they are secured because all the transactions made on Ethereum platform are encrypted and are private.
Future of Ethereum:
Smart contracts the building blocks of Ethereum, could free individuals from the constraints of legal system of banks and other organizations. In addition to this feature Ether is the world’s second largest cryptocurrency after Bitcoin which adds value to the promising future of the Ethereum system.