To understand ethereum, it’s better, to begin with understanding internet first. All our information, personal data, and passwords are stored in clouds and servers which companies like Facebook own. The convenience of this system lies in the fact that these companies engage a team of specialists who store and secure this data and eliminate the cost that comes with hosting and uptime.


In brief:

Based on blockchain technology, Ethereum is an open software platform that facilitates developers to build and deploy decentralized applications.

Over the past couple of years, the name Ethereum is propping up in the news. This word baffles many people as they fail to understand what exactly it is and what does it mean for the future of cryptocurrency.

To understand ethereum, it’s better, to begin with understanding internet first. All our information, personal data, and passwords are stored in clouds and servers which companies like Facebook own. The convenience of this system lies in the fact that these companies engage a team of specialists who store and secure this data and eliminate the cost that comes with hosting and uptime. However, this setup is prone to some risks. This may lend access of your files without your permission to Government or hackers by attacking a third-party service. Thus, your important information may get changed or leaked.

As such many experts believe Internet should always be decentralized and this led to the creation of blockchain technology to help achieve this goal. Consequently, one of the latest technologies, Ethereum joined this movement. The purpose of Ethereum is to use blockchain so as to remove internet third parties that store data, keep track of financial instruments and transfer mortgages. Thus, ethereum aims to decentralize the existing client-server model. Ethereum replaces servers and clouds by thousands of “nodes” which are run by volunteers from all over the world.

If you look at any app store, you will find numerous apps from messaging to banking. To store your information, like credit card details, purchasing history and other personal data, all these apps depend on the company or another third-party service. The goal of ethereum is thus to transfer the control of the data to its owner and creative rights to its author. To put in simple words, Ethereum is an open software platform based on blockchain technology that facilitates developers to build and deploy decentralized applications also called DAPPS.

However, many doubts surround this idea and it remains uncertain that which blockchain applications will, in reality, turn out to be useful and secure.


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