Based on blockchain technology, it is an open software platform that facilitates the building and deployment of decentralised applications. Although functioning in a similar way to Bitcoin, as a distributed public blockchain network, there are some important technical differences, especially in capability and purpose: Bitcoin offers an electronic cash system, which enables online payments and it’s blockchain tracks ownership of digital currency, whilst the Ethereum blockchain concentrates on the running of the programming code for any decentralized applications.
What Can It Be Used For?
Miners work to earn Ether, which is a type of crypto-token that is a tradeable crypto-currency; it is also used to pay for services and transaction costs on the network. Developers are able to decentralize services, which, with all the intermediary ones in existence, across an endless amount of different industries, makes life considerably easier.
This simplifies loans provided to banks by an intermediary service, trading and regulatory compliance and also electronic voting systems to name just a few. It can also be used to build DAO’s, (Decentralized Autonomous Organizations), run independently by programming code. A DAO is owned by anyone who purchases tokens; each token gives a voting right rather than equity.
Ether and Block Chain
Blockchain technology is most commonly associated with Bitcoin, but actually has many other applications which far exceed just digital currencies. Until recent times, the construction of blockchain applications has required serious resources and skills in mathematics, cryptography, also the process codes are extremely limited.
However, with the advent of Ethereum, it now provides developers with the means to construct previously unknown applications, without the restriction of inadequate operations, allowing them to generate whatever they need quickly and efficiently. These extraordinary capabilities aid the building of ‘smart contracts’ which are autonomous in management handling, enforcement, payment and performance.
Using The Virtual Machine
Originally, blockchain applications could master only a limited amount of operations; crypto-currency, for example, was designed to operate exclusively with related networks. This created a huge problem for developers, as expansion would be time-consuming and complicated; enter the Russian programmer and writer, Vitalik Buterin, who was able to develop an entirely new approach.
He invented the ‘Ethereum Virtual Machine’, (EVM), which is a Tuning complete type of software that allows the running of any program, in any programming language. The EVM simplifies the process of creating blockchain applications, while also making them much more efficient, allowing for the possible development, all on the same platform, of thousands of different applications.
In order to create markets and transfer funds, even ones where the instructions were given a long time ago, such as in futures contracts or wills, the EVM and it’s crypto-currency, facilitate the movement of funds without the involvement of any third-party interference.
Transactions are much safer when carried out using a smart contract, removing the risk of fraud, censorship and downtime. EVM development is now in the hands of a Swiss non-profit organisation, which benefits from continuous worldwide input.