Ethereum: An open blockchain platform to build and use decentralized applications runs on blockchain technology. Similar to Bitcoin, no one wheels or owns Ethereum - it is an open-source project which is designed by a lot of experts around the world.
Unlike the Bitcoin protocol, Ethereum was designed with the intention of being adaptable and flexible. New applications on the Ethereum platform are easy to create and it is now safe for anyone to use those applications with the homestead release.
For a developer to run distributed applications (Dapps), it is a peer-to-peer network of virtual machines. The computer programs involved can be anything, however, there is an optimized network that carries out mechanically executed rules as soon as certain conditions are met, like a contract. To cryptographically store, execute, and protect these contracts, Ethereum uses its own decentralized public blockchain.
To sync Ethereum blockchain and remain available to execute contracts, each computer downloads a small virtual machine on their network. In order to get the security, reliability, and computing power necessary for carrying out designed arrangements, there is a distribution of the network. However, the consensus network isn’t free or private, so developers usually use it for consensus on consequences and when their data can be public.
While a lot of contract examples represent numerous human interactions, currently the technology is favored for industrial use-cases such as strict business logic between organizations or machine-to-machine communication. An example of this, energy companies who are researching methods to create a smarter grid in which selling and buying a home become automatic. Another example is the International Business Machines Corp.
The promise of controllable blockchain is loved by the financial industry, excepting the lack of privacy. As a result, consulting companies like Eris have forked Ethereum to sell it, pushed with their consulting services, to construct own private networks in banks.
With amazing possibilities, Ethereum is undoubtedly a novel implementation of virtual machines.
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.