What is Ethereum?
What is Ethereum?
Last updated: March 31, 2017 3:05 pm
Before you can understand ethereum, it helps to first understand the internet.
Today, our personal data, passwords and financial information are all largely stored on other people’s computers – in clouds and servers owned by companies like Amazon, Facebook or Google. Even this DailyCoin article is stored on a server controlled by a company that charges to hold this data should it be called upon.
This setup has a number of conveniences, as these companies deploy teams of specialists to help store and secure this data, and remove the costs that come with hosting and uptime.
But with this convenience, there is also vulnerability. As we’ve learned, a hacker or a government can gain unwelcome access to your files without your knowledge, by influencing or attacking a third-party service – meaning they can steal, leak or change important information.
Brian Behlendorf, creator of the Apache Web Server, has gone so far as to label this centralized design the “original sin” of the Internet. Some like Behlendorf argue the Internet was always meant to be decentralized, and a splintered movement has sprung up around using new tools, including blockchain technology, to help achieve this goal.
Ethereum is one of the newest technologies to join this movement.
While bitcoin aims to disrupt PayPal and online banking, ethereum has the goal of using a blockchain to replace internet third parties — those that store data, transfer mortgages and keep track of complex financial instruments.
The ‘World Computer’
In short, ethereum wants to be a ‘World Computer’ that would decentralize – and some would argue, democratize – the existing client-server model.
With ethereum, servers and clouds are replaced by thousands of so-called “nodes” run by volunteers from across the globe (thus forming a “world computer”).
The vision is that ethereum would enable this same functionality to people anywhere around the world, enabling them to compete to offer services on top of this infrastructure.
Scrolling through a typical app store, for example, you’ll see a variety of colorful squares representing everything from banking to fitness to messaging apps. These apps rely on the company (or another third-party service) to store your credit card information, purchasing history and other personal data – somewhere, generally in servers controlled by third-parties.
Your choice of apps is of course also governed by third parties, as Apple and Google maintain and curate (or in some cases, censor) the specific apps you’re able to download.
Take the example of an online document service like Evernote or Google Docs.
Ethereum, if all goes according to plan, would return control of the data in these types of services to its owner and the creative rights to its author.
The idea is that one entity will no longer have control over your notes and that no one could suddenly ban the app itself, temporarily taking all of your notebooks offline. Only the user can make changes, not any other entity.
In theory, it combines the control that people had over their information in the past with the easy-to-access information that we’re used to in the digital age. Each time you save edits, or add or delete notes, every node on the network makes the change.
It’s worth noting that the idea has been met with skepticism.
Although the apps appear to be possible, it’s unclear which blockchain applications will actually prove useful, secure, or scalable, and if they will ever be as convenient to use as the apps we use today.
Authored by Alyssa Hertig; Images by Maria Kuznetsov
Article Source: http://www.coindesk.com
A Beginner’s Guide to Blockchain Technology
- Can Bitcoin Scale?
- Hard Fork vs Soft Fork
- How Bitcoin Mining Works
- How Can I Buy Bitcoins?
- How Could Blockchain Technology Change Finance?
- How do Bitcoin Transactions Work?
- How Do Ethereum Smart Contracts Work?
- How Does Blockchain Technology Work?
- How Does Cloud Mining Bitcoin Work?
- How Ethereum Mining Works
- How Ethereum Works
- How to Make a Paper Bitcoin Wallet
- How to Mine Ethereum
- How to Mine Litecoin and other Altcoins
- How to Set Up a Bitcoin Miner
- How to Store Your Bitcoins
- How to Use Ethereum
- How Will Ethereum Scale?
- What are Bitcoin Mining Pools?
- What are Blockchain’s Issues and Limitations?
- What Are the Applications and Use Cases of Blockchains?
- What Can a Blockchain Do?
- What Can You Buy with Bitcoin?
- What is a DAO?
- What is a Decentralized Application?
- What is a Distributed Ledger?
- What is Bitcoin Cash?
- What is Bitcoin?
- What is Blockchain Technology?
- What is Ether?
- What is Ethereum?
- What is SegWit?
- What is the Difference Between a Blockchain and a Database?
- What is the Difference Between Litecoin and Bitcoin?
- What is the Difference Between Public and Permissioned Blockchains?
- What is the Lightning Network?
- Who Created Ethereum?
- Who is Satoshi Nakamoto?
- Why Use a Blockchain?
- Why Use Bitcoin?
- Digital Asset Names New CEO to Succeed Blythe Masters
March 19, 2019 1:00 PM | By Jit Sutradhar
- BitGo Adds Custody Support for Blockchain Capital’s Security Token
March 19, 2019 12:00 PM | By Jit Sutradhar
- Bitcoin Faces Minor Price Retreat Amid Increasing Bull Exhaustion
March 19, 2019 11:00 AM | By Jit Sutradhar
- Japan to Tighten Rules on Cryptocurrency Margin Trading
March 19, 2019 10:00 AM | By Jit Sutradhar
Bitcoin Faces Minor Price Retreat Amid Increasing Bull Exhaustion
A Lightning API for Bitcoin Futures Data Has Launched
Citi Has Scrapped Its Plan for a JPM Coin-Like Bank-Backed Cryptocurrency
When Bakkt? Bitcoin Futures Market’s Approval Appears Stuck in Limbo
How Ethereum Applications Earn A+ Security Ratings