ethereum any kind of applications on top.

ethereum is a decentralized platform. It runs smart contracts. Smart contracts are the application which runs as  programmed. Smart contracts are not subject to downtime, censorship, fraud or third party interference.Block chain technology is being referred to as Web 3.0 by many experts. It may completely change the way the things are valued in todays world. As everything in today’s world is valued monetarily, block chain will strengthen the value of each information, products, services and resources.Ethereum is more general concept, not just a currency. It can be used to create multitude of applications. There are more than 1000 DAPPS, that are under progress, out of which some of them have already gone live.The ethereum platform provides a framework for the developers. Through this various applications can be powered on the distributed network. But to work on the ethereum network its necessary to have Ether. Ether is a pseudo currency that runs solely on the ethereum network. In exchange of the ether, the DAPPS ( Decentralized applications) are run on the ethereum platformHOW IS ETHEREUM DIFFERENT FROM BITCOIN ?Bitcoin worked on block chain. But Block chain has far more wider scope. Researchers constantly find variety of uses of block chain. The core idea of Ethereum was simple: a blockchain with a built-in Turing-complete programming language, allowing users to build any kind of applications on top. – Vitalik Buterin .”There is nothing that bitcoin can do which Ethereum can’t. While Ethereum is less battle tested, it is moving faster, has better leadership and has more developer mindshare. ” -Fred Ehrsam Coinbase co founderCRYPTOGRAPHYPublic / Private Key Cryptography .Transactions are tamper proof. The origin of a transaction can be verified (The Public Key is hashed with SHA-3 to produce a 256-bit output. The upper 96 bits are discarded, and the lower 160 bits become the Account Address.)The peer to peer network gives us a distributed, censorship resistant platform. The block chain gives us transparency, verifiable consistency and consensus. Cryptography gives us secure, tamper proof transactions. The block chain lets people who have no particular confidence in each other collaborate without having to go through a neutral central authority. Simply put, the block chain is a machine for creating trust.SMART CONTRACTSContracts lives on the Ethereum blockchain:They have their own Ethereum address and balanceThey can send and receive transactionsThey are activated when they receive a transaction, and can be deactivatedThe Ethereum Virtual Machine runs a turing complete languageThey have a fee per CPU step, with extra for storageThe user can run the application on their local block chainETHEREUM PROGRAMMING LANGUAGESSmart contracts can be written in Solidity (a JavaScript-like language), Serpent (a Python-like language), Mutan (C-like), LLL (Lisp-like). They are compiled into bytecode before being deployed to the blockchain.The state of the contract (voteCount) is maintained on the blockchain along with the smart contract After a certain time the smart contract will end the election and publish the resultsWHY USE ETHEREUM ?UptimeSecurityAlmost FreeTransparencyMicro paymentsLIMITATIONSThe Ethereum Virtual Machine is slow, don’t use it for large computations.Storage on the block chain is expensive, use IPFS / Swarm.Scalability is an issue, there is a trade off with decentralisationPrivate block chains are likely to proliferateIMPLICATIONThird-party intermediaries are not needed in order to conduct transactions between two (or several) parties.End-to-end resolution to be self-managed between computers thatRepresent the interests of the users.DisintermediationDECENTRALISED AUTONOMOUS ORGANISATIONSA Business organisation run according to rules specified in a smart contract. The DAO contains some kind of internal property that is valuable in some way, and it has the ability to use that property as a mechanism for rewarding certain activities. Outsiders can see the governance algorithm It may use voting or prediction markets to choose policyIS THIS ALL A LOT OF HYPE?Probably yes. But much important question should be “What if block chain emerges out to become the backbone of all the organizations, thus bringing transparency to the whole world?” Then definitely the hype created would be worth it.


I'm Isaac!

Would you like to get a custom essay? How about receiving a customized one?

Check it out