What is Ethereum?

Instead of using a computer system from a big company like Google (a centralized system), Ethereum lets software run on a network of several private computers (a decentralized system). Desktop and cloud servers are being replaced by a large, decentralized network of many small computers that are run by volunteers around the world.

The main idea behind Ethereum is that everyone can use this new decentralized network to create and manage decentralized applications. No need for permission as there is no third party.

The vision of Ethereum is to create a “global computer”, a huge network of private computers that will host all future applications without the help of a third party (such as Google and Microsoft).

Ethereum reinvents the way the internet works. It takes power and control from big companies to put it in your hands.

Why Ethereum exists?

To understand Ethereum, you must first understand how the internet works today. Nowadays, when you give your personal information (such as your name or postal address) to an online company, this information is stored in their computer system (so-called servers). Most computer systems are operated by large “Tech” companies like Microsoft or Google, which handle them instead of companies with which you contract.

When you think about it, you realize that a lot of your personal information is stored on hundreds of corporate or government servers. Your name, phone numbers, bank account balances, credit card records, messages, emails, medical information and even photos. The list is endless! You have tons of huge, invisible servers around you that contain tons of personal information.This current method is rather practical, but it has two major flaws. First, the cost of running these servers is huge, and you pay for them. Then you have your personal information stored in computer systems that are vulnerable: they can be hacked.

Piracy happens all the time, because each server is seen as a huge target that is filled with valuable information for hackers. All businesses are facing this problem. They are in an endless race against hackers. Recent examples of hackers that have stolen thousands of personal information include reputable companies such as Dropbox, Walmart, Starbucks, Facebook, Equifax and Google. No company can completely protect itself in the long run.

The Ethereum is revolutionary because, for the first time, it allows online computer systems to operate without the use of a third party.

Who created the Ethereum?

In 2013, programmer Vitalik Buterin and his comrades created Ethereum.

How does Ethereum work?

Not needing a third party (like Google) to store and transfer information has a lot of benefits. Without intermediaries, computer systems become cheaper to operate and also more difficult to hack.

In addition, your personal information may become more private because companies no longer need to store them (forever) in their server. You are certainly beginning to understand why the Ethereum could change the world.

Imagine two people sending messages on their respective smartphones. Traditionally, both people send messages to each other using apps like WhatsApp, Facebook or Skype, which are run by large companies. Once sent, the message goes from the sender to the server of the company and only after it arrives in the hands of the recipient.

Now imagine that both people are using a decentralized application built on Blockchain Ethereum. The Ethereum system is not managed by a company, but by a network of independent and private computers all over the world.

When someone presses “Send”, the message starts from the sender to arrive on the Ethereum network and then to the recipient. The best part? Your message is “hidden” and “invisible” for the network. Decentralized applications work automatically without intermediaries because they use Smart Contracts.

Smart Contracts establish pre-established rules between computers and apply them automatically. They operate as beverage vending machines, which are programmed to apply certain rules automatically. “You place 50 cents in the machine? You will have nothing. Do you place 1 euro? You get a soda? You place 1 euro but there are no more cans in the machine? You are reimbursed. “Imagine football seats sold using the Smart Contracts of the Blockchain Ethereum.

Since the contract is “smart”, it can automatically act based on certain events. For example, the Smart Contract could be connected to a weather app and be programmed to automatically reimburse you in case of a rainy day. Pretty magical, is not it?

Most applications built on Blockchain Ethereum and Smart Contracts require a currency exchange. Ethereum is completely digital, so it needs an internal payment system to do that.

In the Ethereum ecosystem, all payments are made using a very specific crypto currency, ETH.

The combination of Smart Contracts and Blockchain technology is what makes Ethereum so relevant because it removes the need for an expensive third party to manage applications and send money.

What is the value of Ethereum?

To know the current Ethereum courses, we invite you to follow its news on the site coinmarketcap.com; Also you can find below a curve of the evolutions of the exchange ETH / USD since the creation of the Ethereum:

At the time of writing, an ETH is worth $ 841 USD.

What are the uses of Ethereum?

The idea behind the Ethereum is to have applications that are decentralized and can be used to remove intermediaries from hundreds of industries. Smart Contracts can make apps work, exchange money and other values ​​… and ensure the exchange of information between users.

It’s a revolutionary new technology and we’re just starting to see the contours. It is much more than a cryptocurrency since it is already at the origin of dozens of crypto currencies that have concrete applications in the real world. One thing is certain: Ethereum will change the world!

  • Example 1: Peer-to-peer marketplaces With Ethereum, it is possible to create marketplaces where buyers can buy directly from sellers, with no intermediary. For example, imagine artists selling music directly to their fans, instead of using intermediaries like Apple or Amazon. Music could then become cheaper and artists would have access to a larger share of sales revenue. A win-win strategy so!
  • Example 2: Peer-to-peer insurance With Ethereum, it is possible to create “smart” insurance policies that are automatically sold and managed on peer-to-peer systems. For example, imagine auto insurances that automatically charge you a small amount for the miles you drive. The insurance world can become cheaper and more personalized.
  • Example 3: Smart Power Grids With Ethereum, it is possible to make solar panels buy and sell energy on the grid. The system can intelligently sell the surplus energy during peak usage to get the best price. In winter, the system can also purchase additional amounts of energy. Intelligent management of our resources thanks to Ethereum So
  • Example 4: Health With Ethereum, it is possible to create a platform that records, manages and rewards your actions that will contribute to better health. This can be done with smart objects (like Fitbit wristbands or Apple Watch). For example, communities of people can come together and create smart contracts that reward those who achieve their fitness goals.

Now you know what makes the Ethereum so unique. It is a Smart Contracts platform that allows completely foreign individuals to exchange digital information, goods or money, through applications and in an extremely secure way. No need to trust and no need to rely on a third party! Ethereum is revolutionary because it gives you total control over your digital applications and information. It is his power that makes him so popular!

How to have Ethereum?

As for Bitcoin, you can mine the Blockchain Ethereum or buy and sell Ethereum on the various exchanges that exist.