Internet users do not have exclusive control over the data they share on today’s websites.
Ethereum is unique in that it tries to handle the blockchain as a way to correct what its designers believe is a problematic part of Internet design.
It is like a “decentralized application store” where anyone can publish their unstoppable applications (dapps), which unlike current applications (think of Gmail or Uber) do not require an intermediary to operate or manage a user’s information.
Dapps connects users and providers directly.
An example is to use this design for a decentralized Twitter that is resistant to censorship. Once you post a message in the blockchain, it cannot be deleted, even by the company that created the microblogging system.
However, there is no definition of dapp, since it is a newer concept.
A couple of main features are that they are open source and do not have a central point of failure.
With this new technology in nature, ethereum advocates can feel electrified by the idea of decentralizing “all things.” But the types of applications that users can build with the computing platform could be somewhat narrow.
The ethereum technical document divides dapps into three types: applications that manage money, applications where money is involved (but also requires another piece) and applications in the “other” category, which includes voting and government systems.
In the first type of application, a user may need to exchange ether as a way to terminate a contract with another user, using the distributed computer nodes of the network as a way to facilitate the distribution of this data.
The second type of application mixes money with information from outside the blockchain.
For example, a crop insurance application that depends on an outside climate. (Let’s say a farmer buys a derivative that pays automatically if there is a drought that affects their work).
To execute, these smart contracts are based on the so-called “oracles” that convey updated information about the outside world. (However, it is worth noting that some developers are skeptical that this use case can be done in a decentralized manner).
If Bitcoin can eliminate financial authorities, is it possible to do the same for companies and other types of organizations?
Decentralized autonomous organizations are a particularly ambitious kind of dapp (this is explained later in ‘What is a DAO?‘).
The goal is to form a company without leaders, program rules at the beginning on how members can vote and how to release company funds and then … let it go.
Images by Maria Kuznetsov
Article Source: http://www.coindesk.com