Ethereum often described as “the world computer” is an open source, globally decentralized computing infrastructure that executes programs called smart contracts. It uses a blockchain to synchronize and store the changes in the network, it comes along with a cryptocurrency called ether used to measure and control what the network can do at any given time.
The Ethereum platform enables developers to build powerful decentralized applications with built-in economic functions. While providing high availability, auditability, transparency, and neutrality, it also reduces or eliminates censorship and reduces certain counterparty risks.
Ethereum’s purpose is not primarily to be a digital currency payment network. While the digital currency ether is both integral to and necessary for the operation of Ethereum, ether is intended as a utility currency to pay for use of the Ethereum platform as the world computer.
You might still have some confusions on why Ethereum often described as the world computer well it is called the world computer because it is a software that allows new types of programs to be able to run on its worldwide network of computers, that, similar to Bitcoin transactions, are not able to be censored or closed down, owing to the distributed nature of the Ethereum design.
Think of all the different intermediary services that are used across all the different industries. From banks to other services that we rarely give a second thought to, like regulatory compliance, voting systems, etc., if the service is centralized it can easily be decentralized with Ethereum. The main benefits of Ethereum are;
Immutable - changes cannot be made to any data by a third party
Tamper-proof and corruption-free – the framework the apps are built on are based on the principle of consensus and this makes censorship virtually impossible
Secure – there is no single point of failure and all applications and transactions are secured with cryptography, giving them strong protection against fraud and hacking
No Downtime – the blockchain can’t go down so the apps can’t go down and they are never switched off
All businesses or services being built across different industries need funding to operate. Many traditional methods for raising funds exist, like soliciting private investors, securing loans, or selling shares in a company.
Ethereum gives opportunities to normal people like me and you, Where we can participate in what is called An ICO where a type of currency is exchanged for a digital item of value on the Ethereum network, these tokens represent a future value as ownership in the new venture or current value that entitles you the holder to some benefits.
Ethereum is also used to build DAOs – Decentralized Autonomous Organizations. which are decentralized organizations that are fully autonomous, having no one leader. These are also executed purely by smart contracts.
This code replaces the structure and the rules of a traditional organization and eliminates the need for centralized control and for people. Each DAO is owned by those who purchase ETH tokens but, rather than the tokens also act as equity shares or ownership, they provide the token owner with voting rights instead
In Conclusion, they are some downsides to the Ethereum Network like scalability issues that often occur when they are millions of people on the network especially during a bull-run, the Major issues are long transaction time and high fees. But all around Ethereum is breaking barriers and giving individuals like me and you the opportunity to build & interact do cool things on the blockchain
Idris