Whether you understand them, fear them or respect them, there is no escaping blockchain-based technology and applications today. While cryptocurrencies are always trending for a number of reasons, the applications and use cases of blockchain and blockchain enabled platforms go far beyond cryptocurrency. One such platform is Ethereum, a decentralised blockchain platform that empowers a peer-to-peer network to securely execute and verify code called smart contracts.
So what exactly is the Ethereum framework and is the buzz around Ethereum justified?
According to the official website ethereum.org, “Ethereum is a technology for building apps and organisations, holding assets, transacting and communicating without being controlled by a central authority.”
Put simply, Ethereum helps developers build decentralized applications. It uses the blockchain network which is made up of nodes - computers or volunteers that mine for the coin. Ethereum can be leveraged by anyone to create any secure digital technology. It is one of fastest emerging technologies preferred to build a variety of applications with far-ranging implications and use cases.
How Ethereum came about
In 2013, programmer Vitalik Buterin came up with the concept of ethereum. The development was done via crowdfunding. Initially, ethereum also included a proof-of-work algorithm to produce blocks with the help of miners who backed it up with hardware resources. The main difference was that it used Solidity as its scripting language. Solidity allowed them to write applications and execute them in a decentralised manner. This idea of decentralised execution of a program upon triggering predetermined conditions is known as “smart contract”. Ethereum was the first decentralised blockchain platform for smart contracts.
In addition to defi, dapps, NFTs, and smart contracts Ethereum has many other applications.
In a move to combat the energy-intensive mining process and also to secure the network using staked ETH, Ethereum mainnet is set to merge with the Beacon Chain’s proof-of-stake system giving birth to Ethereum 2.0 one of the most highly anticipated news of 2022. Ethereum is certainly the blockchain technology of the future and is here to stay with its wide ranging applications, security and decentralization features.