Ethereum 101: Overview of the Ethereum Blockchain and Asset
Ethereum is one of the most commonly discussed cryptocurrency in the industry and it is widely regarded as the second most valuable digital asset next to Bitcoin. Many would confuse the details but the name ‘Ethereum’ is actually referring to the blockchain.
The digital asset that is native to it is called ‘Ether’ or ‘ETH’. Ether is not just a coin used for buying goods and services. It is a ‘token’ that is used for supporting dapps or gaining influence in the blockchain. It is currently one of the most popular coins accepted by online casinos like Luckyslots.
True Purpose of Ethereum and its Asset
Aside from being used to buy and sell services or deposit into online casinos, Ethereum has a more ambitious purpose. It aims to be a platform for decentralized apps (dapps). The idea is to make ownership of apps distributed to different nodes so no single entity can completely change or remove the app, not even the company that made it.
What advantages does a dapp have over normal apps?
An app that is owned and controlled by a single company or person is always prone to be abused by the person who made it. They can sell personal data uploaded by the users or they can censor posts and other data of users to control the content of the app. It comes to a point that users simply have to trust the company managing the app to use its services.
Dapps still offer the services of apps but without having to trust a company or person with anything. Ethereum allows dapps to run autonomously from the moment they became live on the platform. Dapps can remain public to ensure transparency in its operations.
What’s more, dapps are protected from the fall of its owners. If a company is no longer able to support an app then the property will either be sold or shut down. This takes with it all of the contents that the community of users have contributed. Dapps are not vulnerable to the same fate because they are already independent the moment they went live. Every operation is autonomous and most of them come with smart contracts that let them update occasionally.
This is one of the biggest features of Ethereum although it is not unique to this blockchain. Smart contracts are programmed with a special condition that people involved need to meet in order to do something that it is programmed to do as a result.
Smart contracts protect people in a transaction. This ensures that someone who’s buying with Ether or any cryptocurrency will get what they asked for. This also helps protect people from fundraising scams. Smart contracts are also used to keep a network running such as controlling the contents of a dapp or the currency in circulation.