Basically, Ethereum is reputed the first open software platform based on blockchain technology that enables developers to build and deploy decentralized applications(dAPP) and smart contracts.
Etherum platform was also the first blockchain project to be funded through an online crowdsale of Ethereum native currency-ether (ETH), between July and August 2014 marking the beginning of what is now popularly referred to as Initial Coin Offering (ICO).
Ethereum & Bitcoin: Any difference?
Like Bitcoin, Ethereum is a decentalized public blockchain network. Despite the shared characteristics of the two blockchain protocol, there are significant technical differences between these two platforms; the most notable is in their purpose and applicability.
Bitcoin offers one particular application of blockchain technology: a peer to peer electronic cash system that enables online payments. Ethereum blockchain focuses on running the software code of any decentralized application (dAPP). While the Bitcoin blockchain is used to track ownership of digital currency (bitcoins), the Participating entities work to earn Ether(ETH)- a token that fuels Ethereum network instead of “mining” for bitcoin as is the case with Bitcoin blockchain.
Ether (ETH) is not just a tradable cryptocurrency but also used by software developers to pay for transaction fees and services on the Ethereum network.
Ethereum platform also allows developers to create whatever operations they want on its network. This means developers can build thousands of different applications that go way beyond anything we have seen before.
Ethereum platform can also be used to build Decentralized Autonomous Organizations (DAO) -a completely programmed and fully autonomous, decentralized organization with no central authority. DAO’s are run by programming code, on a collection of smart contracts written on the Ethereum blockchain. The programmes are usually designed to replace the rules and structures of a traditional organization, eliminating the need for people and centralized control. A DAO is owned by everyone who purchases tokens, but instead of each token equating to equity shares & ownership, tokens act as contributions that give people voting rights.
Ethereum has attracted very significant interest within and outside the crypto community. Already many ICO has been concluded on the Ethereum platforms raising billions of dollars in 2017 alone. Being a young and an actively evolving technology, and given the gradual but increasing rate of mainstream adoption for blockchain technology general, we hope to see institutions developed dAPP on the ethereum platform for their specific industry application. when this happens ethereum will turn out to be even more valuable.
Israel Martins is a cryptocurrency researcher and trader since 2016, passionate about blockchain and other emerging technologies.