Over the last few years, developers have started making use of underlying technology of Bitcoin – the Blockchain –for applications to be new&creative. A next generation platform Ethereum that lets any person – both consumer and developer – to take advantage of decentralized networks easily and potential benefits of blockchain technology are realized.
“In Ethereum New types of apps are possible by the network of computers”
Why the name ethereum?
It’s a metaphor referring to the ether, the hypothetical invisible medium that permeates the universe and allows light to travel.
The Blockchain: A central authority is used by most of the networks for their functioning and taking the final decisions.So the Blockchain is a type of decentralized network, which is able to make to make agreement across the whole network, without any central authority involved .
Bitcoin uses Blockchain technology to record and verify transactions without the need of central bank.
What are decentralized networks?
In a Decentralized network, peer-to-peer communication is enabled and networks redistribute functions and powers away from a central server.The advantages of such decentralized networks are
- No central point of failure
- Highly reliable
BitTorrent, used for file sharing, is an example of a decentralized network.
The old way with a regular app:
So here the message sent by USER A goes through Whatsapp’s servers. They paid to build their own servers. In this, your message is in the hands of one big company forever.This is called a centralized network of computers.
The ethereum way with a dApp= decentralized App:
The message goes to a set of independent computers spread all over the world, owened by normal people like you and me, Mist .and every computer does a little bit of the work .to connect to the network they installed a special program cMist.No one can access your full message.This is a decentralized network.
Mist: It is end user interface of Ethereum so that blockchain technologies can be easily used by non-technical users. A catalog will be included for decentralized applications and a bunch of other tools that will be used.
Mist is similar to the browsers and app stores that the consumer is already familiar with.
In this system, every participating computer receives a reward for their work because they paid for hardware, electricity and shared their processing power.
Every computer needs to be sync with the network and stay always-on to work and get rewards.
They don’t get dollars but a digital asset called ETHER. Ether is the fuel that makes Dapps run Like gas makes your car running.
How can I use this “Ether”?
They get an account at an online exchange, for ?which is just like the trading platform you used to buy stocks.
Now the main question What will Ethereum be for?
That we Traditionally the Sthat we are using are centralized, Now this can be decentralized using Ethereum. Which will lead to reduced fees and costs by removing 3rd parties and connecting individuals directly.
Imagine a service like Ola or Amazon without a company in the middle collecting fees!